This point brings out a question that few ever consider: what is wealth and who is really rich? Although we are called the United States of America, the label couldn't be further from the truth in some respects. As a longtime member of the mortgage industry, I can tell you that dealing with the 50 states is akin to dealing with 50 different countries. I bring this up because someone who is wealthy or rich in one state may find themselves substantially different, from a wealth standpoint, in another state. Just ask Fannie Mae, Freddie Mac or HUD. They all have different maximum loan limits throughout and among the various states.
A couple earning $250,000 in Kansas with two young children have a completely different financial experience than a couple who have three teenagers in San Francisco, California, or in New York City. What might appear to be over the top earnings in Lincoln, Nebraska, could be just hanging on in Chevy Chase, Maryland. It is also important to define wealth not as an accumulation of assets, but rather the difference between what you own and what you owe. I believe the current real estate crisis aptly demonstrates this important point.
Milton concludes his letter to the editor with the thought "there is nothing wrong with taxing the wealthy and easing the burden on the unwealthy." The most frightening part of this statement is simply who makes these decisions? First, we must determine who is wealthy and then we must figure out who is unwealthy, per Milton. How in the world do you divide up our countrymen into two groups? Perhaps it should be three groups.
Could there also be a group that is not only unwealthy, but at the same time, isn't wealthy either? The vast majority of societies in history who have tried to do something that appears to be as simple as this not only failed but also vanished. But overlooking the historical evidence, I go back to my original question, who makes the choices? We have reached the major question we must all consider as we weave our way down this slippery slope: are we willing, as Americans, to be categorized and defined by a third party? If we are, is this considered freedom, the very right we have fought for, to preserve for ourselves and our future generations for over 200 years? I, for one, cast a hearty nay. What say you?
Milton did what so many people would love to see: reward without risk. Why can't we have Christmas every day? Why can't we turn over all of our problems to the government and let them solve them, while allowing us to live the life we have chosen, without consequences? It seems so clear when you focus on the end and ignore the process.
I heard one economist say that the only way to save the real estate market is to forgive all the mortgages or simply lower them all to a rate everyone should be able to pay. It sounds good to me, but what happens to the institutions and people who are holding these mortgages and expecting a return on their money as well as having their money returned?
Yes, Virginia, there is a Santa Claus, but unfortunately when you examine him closely, you realize he doesn't work for the government. Unfortunately, we all must grow up and find out that Santa is really just us!