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The left claims to be concerned about income inequality, but its members have repeatedly rejected solutions that would allow more people to accumulate assets and savings. That’s because the left wants to eliminate income inequality by making everyone equally miserable. But the American way is to help everyone earn more and live a better life.
An example of a dramatic effort to empower the poor and help them become wealthy was developed by then-Secretary of Housing and Urban Development Jack Kemp under President George H.W. Bush.
As a congressman from Buffalo, Kemp helped develop supply-side economics and drafted the Kemp-Ross three-year tax cut, which became the basis of President Ronald Reagan’s tax cut plan.
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Kemp was one of the most innovative leaders in finding ways to bring the benefits of capital and ownership to the poor, both as a member of Congress and as Secretary of HUD.
Poverty doesn’t have to last forever. Republicans have advocated ways to accumulate wealth. (St. Petersburg)
He and civil rights activist Bob Woodson developed a program that allowed people living in public housing to eventually own the rooms they lived in in exchange for helping maintain the building.
This bold idea infuriated left-wing Democrats. Massachusetts Congressman Barney Frank, one of the most liberal members of the House of Representatives, pointed out that the plan would allow poor New York City residents to acquire $1 million worth of real estate in the New York market. opposed the plan.
Yes, the fact that this program could help poor people accumulate wealth was against him. The left is happy to talk about helping the poor as long as they remain poor and dependent on government.
Another example of a bold reform that gives low-income Americans the opportunity to accumulate more wealth is the enhancement of Social Security through individual savings accounts.
One of the major obstacles to closing the gap between rich and poor in America is the fact that 4 out of 10 Americans do not invest in the stock market.
Personal Accounts to Enhance Social Security will allow all Americans to have a 401(k) and enjoy higher monthly payments in retirement. Unlike the current Social Security model, this would allow seniors to leave their account balances to their heirs.
This opportunity is especially important for low-income Americans because the lack of intergenerational wealth transfers is a major factor that perpetuates inequality.
Of course, the left opposes this strengthening of social security, not because it is bad for the poor or minorities, but because it makes these groups more capitalist and less dependent on government.
In recent years, we have seen this pattern repeated in left-wing attacks on retail trading platforms that allow customers to access the stock market through apps on their mobile phones.
Personal investment apps lower the barrier to entry by making small investments cost-effective as they do not charge fees for transactions. Instead of making money on fees, these trading platforms often rely on small kickbacks from market-making firms that compete to execute trades, a process called order flow settlement (PFOF).
Today, commission-free online investing and trading is the norm. Since the introduction of commission-free trading in 2013, a number of commission-free online investment platforms have appeared on the market. As a result, individual investments in stocks increased from 10-15% in the 2010s to 25% of total investment volume in 2021 (BNY Mellon, November 2021). This increase in retail investing has also increased the number of ethnic minorities and women joining the investor class.
Since 2015, minorities have entered the investment market at a faster rate than whites, according to a report from the Financial Industry Regulatory Authority (FINRA) Foundation. And these minority investors tend to be younger than their white counterparts.
Another report from Fidelity found that 67% of women now invest outside of retirement, up from 44% in 2018. Again, the largest increase is from young women. The study also showed that women tend to outperform men as investors.
But just like Congressman Frank, who opposed the idea that the poor might have the opportunity to own a million-dollar home, the left opposed the idea that more people would have the opportunity to accumulate wealth through investment. is against.
President Joe Biden’s U.S. Securities and Exchange Commissioner, Gary Gensler, has backed traders from liberal Democratic politicians such as Massachusetts Sen. Elizabeth Warren and New York Rep. Alexandria Ocasio-Cortez. Without the fees paid by the trading app, the trading app falsely claims to be contributing to the profits of market makers and market makers. It’s the hedge fund, not the customer. Other leftists argue that options trading is too risky to be easily accessible to ordinary Americans.
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Some trading platforms, such as Public.com, have sought to placate the left, announcing that they will phase out PFOF in 2021 and instead rely solely on tips to make money. Public also prohibited its customers from even basic options trading.
Personal Accounts to Enhance Social Security will allow all Americans to have a 401(k) and enjoy higher monthly payments in retirement. Unlike the current Social Security model, this would allow seniors to leave their account balances to their heirs.
However, earlier this year the company did a 180 and announced the return of PFOF as part of the introduction of options trading to the platform. Like many companies that have experienced the “wake up and go bankrupt” effect, Public has discovered that you can either give your customers what they want or leave them with what they want. The people seem to have chosen the ultimate benefit.
Politicians should learn the same lesson. Americans are struggling in the Biden economy and want financial independence. This means providing more opportunities to accumulate wealth, rather than taking away the opportunity to accumulate wealth by banning business models that allow more people to invest.
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Under the Biden administration, urban deterioration and rising housing costs also mean it’s time to think more creatively about welfare and anti-poverty programs. The benefits of saving, investing, and wealth accumulation should be supported.
Our goal is to help people escape poverty, not to stay in it.
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