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Tuesday, October 03, 2006
Thomas Sowell :: Townhall.com Columnist
Socialism for the rich
by Thomas Sowell
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Although socialism has long claimed to be for the poor, it has probably done more damage, on net balance, to the poor than to the rich. After all, the rich have enough money to leave the country if they think the socialists are going to do them any serious harm.

Some of our own rich have already had their money leave the country, to be sheltered from the higher taxes that limousine liberals say we should all pay. Meanwhile, the liberal media give them kudos for their selfless advocacy of higher taxes on higher income people, forgetting that these are not taxes on wealth.

Most of the people in the upper income brackets are not rich and do not have wealth sheltered offshore. They are typically working people who have finally reached their peak earning years after many years of far more modest incomes -- and now see much of what they have worked for siphoned off by politicians, to the accompaniment of lofty rhetoric.

The rich have learned to adapt socialist policies to their own benefit. For example, the city of Riviera Beach, Florida, is planning to demolish a working class neighborhood under its power of eminent domain, in order to prepare the way for a marina for yachts, luxury condominiums and an upscale shopping district.

What will the city of Riviera Beach get out of all this? More taxes from higher-income people, enabling local politicians to spend more money on programs to attract votes.

Meanwhile the rich get rid of lower-income folks without having to pay them the value of their homes and businesses that will be demolished. As in so many other cases, eminent domain is socialism for the rich.

Theoretically, those whose homes and businesses are demolished will get the "just compensation" to which the Constitution says they are entitled.

In reality, just announcing plans to demolish the homes in an area will immediately demolish part of their market value. Even if homeowners are compensated for whatever value remains when their homes are actually demolished -- which can be years later -- they have still been had.

For businesses, compensating them for the value of their physical assets -- which may or may not include ownership of the place where their businesses are located -- does nothing to compensate them for the often much larger value of the clientele they have built up over the years but who are now scattered to the winds by neighborhood demolition.

This game doesn't work the same way in rich neighborhoods. Not only can the rich hire big-bucks lawyers to fight city hall, why would city hall want to get rid of upscale taxpayers, who are often also big donors to political campaigns? Continued...

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About The Author
Thomas Sowell is a senior fellow at the Hoover Institute and author of The Housing Boom and Bust.
 
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©Creators Syndicate
Gov't by the rich, of the rich and for
the rich.

American socialism is seen NOW!

It is for greedy, rich people who buy access and bribe Repubs with campaign contributions and kick backs and past govt jobs and freebees.

Repubs don't believe in competitive capitalism,
they believe in Crony Military Socialism, a la
George Bush and all the war Contractors.
Billions and Billions in no bid contracts!

Repubs are supported by the munitions
makers that depend on fear and empire
building, all the while jobs go overseas.

This is American socialism.

2 trillion dollars is the cost of Iraq!
They did not have WMDs. They did not
attack us. They were no threat to us.
But they do have 12 trillion dollars
worth of crude oil that multinational
oil monopolies want. So Bush and Cheney
are helping them out, subsidizing them
at the tax payer expense. That is
the real American Socialism.

Representation in Eminent Domain
Actually, when your property is part of a taking under eminent domain, you are not responsible for the attorneys' fees incurred while defending your property rights or in order to seek greater compensation. Any individual can avail themselves of this right under the Constitution. The gov't that is initiating the taking is ultimately responsible for your attorneys' fees. There are some firms who specialize in this type of litigation and their whole selling point for using their services is that it is 'free of charge' to you. When the suit is finally settled, they have another series of hearings in which they present their fees to the court and obtain a judgement to be paid. The only problem is that many people don't know this and believe that once the gov't acts they just have to bend over and that's it.
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