Recently, Elizabeth Warren — Harvard Law professor and Massachusetts Senate candidate — was filmed discussing arguments that efforts to raise taxes on extremely high income earners is “class warfare,” an increasingly common refrain. She responds to this line of argument by questioning the individualist narrative of wealth — that is, that people who are rich did it all on their own, and thus owe nothing to society. As she points out, taxpayer-funded infrastructure and services — from highways to law enforcement to widely-available education — are essential elements of such financial success stories. But current discourse about wealth and taxes obscures the social nature of wealth creation, portraying taxation as unfair taking rather than a fair return on the public’s investment:
Transcript after the jump.
I hear all this, you know, “Well, this is class warfare, this is…”, whatever. No. There is nobody in this country who got rich on his own. Nobody. You built a factory out there – good for you. But I want to be clear. You moved your goods to market on the roads the rest of us paid for. You hired workers the rest of us paid to educate. You were safe in your factory because of police forces and fire forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory… Now look. You built a factory and it turned into something terrific or a great idea – God Bless! Keep a Big Hunk of it. But part of the underlying social contract is you take a hunk of that and pay forward for the next kid who comes along.
Comments 21
Yrro Simyarin — September 23, 2011
Getting rich is a group effort. This is why most of the rich already pay the most taxes. Even with all of the loopholes and cuts, the majority of the tax code is still progressive. I don't know that anyone is arguing against what she is saying. Of course the rich should pay to fund the public works that they themselves used to obtain their riches - in fact, if you look at the money raised from them, they already do - and several times over.
This has nothing to do with whether a) the advocacy of higher taxes on high earners is inherently class warfare (it isn't) or b) many advocates of higher taxes on high earners are using class warfare to support their agenda (they are). Of course, everyone's using class warfare in politics these days (arugula, anyone?), so it's not really surprising!
anon — September 23, 2011
Meh... needs to go so much further. Were the factory, roads, and markets built on occupied/stolen indigenous land? Could the investment capital that went into building the factory be traced back to wealth produced through the slave trade? Would the (male) workers in the factory be able to work without the subsistence economy of women's work in the home? How many years will it be until this factory shuts down and production moves to a Free Trade Zone in the Global South? (and how will this move affect her argument, when workers and roads are no longer national products?)
Jean-Philippe — September 23, 2011
I admire the determination of Warren to spend such energy to state the obvious...
Elizabeth Warren speaks the truth « Ideologically Impure — September 23, 2011
[...] at Sociological Images. I hear all this, you know, “Well, this is class warfare, this is…”, whatever. No. There is [...]
Anonymous — September 24, 2011
Why not apply the reasoning in the opposite direction?
If we privatized roads and other forms of infrastructure, then we wouldn't have rich people getting free rides on the public dime; they'd have to pay the market price for everything they used, and they would be paying the people who actually produced those things rather than society in the abstract. Further, they would pay in proportion to the amount and types of infrastructure they used, allowing for prices to more realistically reflect the costs of the infrastructure that went into them, rather than subsidizing firms that make disproportionate use of resources currently considered public.
This basic form of argument is very common. First, government appropriates some social function and forces everybody to use it, and then pro-government advocates use the fact that people are using that thing as justification for government control of them. If the problem really is that rich people are exploiting public infrastructure that you pay for, then you should try to get the government to stop making you pay for their infrastructure! If that doesn't address your concern, then obviously you just want more of society to be government controlled.
A second point is that this has nothing to do with regarding wealth creation as individual or collective and portraying it like that is disingenuous. The question is whether human cooperation should be coordinated on a voluntary basis by free individuals or by political means. Free market ideology and economics are hardly lacking in appreciation for the collective nature of industrial wealth creation. In fact, one of the major beliefss in such ideology is the belief that free markets allow for a scale of human cooperation that would otherwise be impossible. I, Pencil comes to mind as a work which encapsulates the free market position in this regard.
Anon — September 24, 2011
The way she put it, it's almost as if the rich does not pay a dime of taxes! The things she stated are common public property... everybody paid for it, it isn't justifiable to expect people to pay more simply because they earn more.
FilmFestival » Linknesses — September 24, 2011
[...] OffCinemaSociological Images Elizabeth Warren is my new hero. Finally, a Democrat who can convey message in a clear, confident, convincing way.Drawn If you’re an artist reading, this lengthy video on celebrity caricature is super interesting in terms of technique and how to capture likenesses that are always so manipulated. This bit on Conan O’Brien’s hair is choice. [...]
» Don’t give yourselves to these brutes who despise you, enslave you; who regiment your lives — January 17, 2015
[…] -Elizabeth Warren (via Sociological Images) […]
Jack Hitch — December 28, 2021
Interesting
jack nelson — December 29, 2021
Thanks for posting! I was curious about this topic. And especially about the position of rich and poor in society and how they influence each other. This is an acute social topic, I am writing an article about it, here you can learn about Group influence and the role of people in society.