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#inequality One of our readers who lives in Montreal called me a few days ago. He had just returned from a business trip to Vancouver. He had come face to face with people living in tents, drug usage, and homelessness. He had always been very proud of Canada for avoiding this blight that curses many American cities including nearby San Francisco. He blamed it on inequality.
He was correct. Vancouver is one of the most attractive destinations for people wanting to relocate to another county. It has beautiful scenery, a low crime rate, a stable government, and wonderful things to do and see. This has led to affluent people from all over the world moving to live there. Housing prices have literally "gone crazy."
This has led to heated investor interest that has driven up the price of housing and rents even more. The middle class, once the centerpiece of Vancouver life, has been driven out. This has created a vacuum that is prompting the rise in homelessness, drug usage, etc. I have a dear swim friend whose brother lives in Vancouver and owns a condominium there. He says that the problems there are not as bad as those in American cities yet.
In 4 months, I will make it to 74 years of age. A question haunts me. I do not have an answer for it. How do we solve the problem of the economic inequality between the rich and the poor? Russia and China launched a massive experience with Marxism, The goal was to solve the inequality issue. This experiment failed. In the US and England, the income tax rates on the highest wage earner were raised to 90%. Inheritance taxes were raised to assure that parents could not transfer their wealth to their children and their other family members. This did not work.
I lived through 5 years of socialism in Australia. Income taxes were 50% or higher. The economy was heavily regulated including rent control. There were very few rich people and very few poor people. But life was far from perfect.
There are all sorts of suggestions about how to solve the problem. We could get into intense political discussions. I shall pass on this.
I'm going to surprise you and praise my native state of Texas. Years ago, they had an idea to increase prosperity and wages. It started with making education either free or very low cost. At the same time, an economic environment that encouraged companies to invest and grow. As skilled workers got their education, they went to well-paying jobs. Sadly, Texas of today has veered away from the original idea that created prosperity.
Elena has a very fatalistic idea about inequality as follows:
"Either one is born with money or they will never get it."
I calmly point out to her the history of her life. Elena was born in a very lower-middle-class family that was what I call "one-click above the slums." I also point out the history of my domestic partner in the 1980s-Antonieta. She literally was born in a Guatemala slum to a mother with no husband. Both women now live upper-middle-class lives here in California. Elena says she and Antonieta are exceptions to the rule. I disagree. There is a saying that I love as follows:
"Cream rises to the top." Elena and Antonieta are both most remarkable women in intellect, talent, character, and a strong work ethic.