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Old 04-15-2014, 12:25 AM
 
Location: Pac. NW
2,426 posts, read 1,868,257 times
Reputation: 4517

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Quote:
Originally Posted by Pinkmani View Post


The inspiration for this thread started because I was curious on how Mitt Romney became so wealthy, so I looked it up and ran across this video on how private equities work (Bain Capital). From what I understand, a lot of his income is "investment income" and it came from capital gains. Since he had a lot of investment income, he could use the corporate tax write-offs, which is why he paid 14%. Compared to people like my parents who made $115k, and paid 22%.

So, if I'm understanding this correctly, is this how the 1% became so rich?
If this IS in fact how the 1% became rich, what's stopping you from buying stock and collecting some of that "investment income"?
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Old 04-15-2014, 01:24 AM
 
Location: Pac. NW
2,426 posts, read 1,868,257 times
Reputation: 4517
Quote:
Originally Posted by Tuck's Dad View Post
Ruling out illegal activities and corruption (both exist), the 1% generally become the 1% by providing a good or service at a profitable price to the mass market; that enriches the lives of the masses. The rich that started a business with an inovative idea that changes how things are done are wildly compensated, but the wealth generated in society at large far outweighs their compensation.

Off the top of my head:

Sam Walmart - people think he grew a store, but he deloped a delivery/logistics system
Henry Ford - people think he made cars, but he invent the modern assembly line
Bill Gates/Steve Jobs - people think they did computers, but the created (in real terms) the information age/information economy

Now, Global Crossing execs, Bernie Madoff, etc. fall into the illegal activities and corruption. They deserve contempt, scorn, and whatever punishments are prescribed for their illegal/corrupt activities. However, the true inovators and honest business developers do a lot of good economically for large portions of the population.
Exactly!!
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Old 04-15-2014, 04:24 AM
 
Location: London
4,499 posts, read 4,095,993 times
Reputation: 2118
Quote:
Originally Posted by tommy64 View Post
If this IS in fact how the 1% became rich,
It is not. Look at the root not the symptoms.
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