Outcast_Searcher wrote:That's a nice fantasy for those who love to "hate the rich" and pretend like the wealthy all inherited their wealth or that they did nothing to earn their wealth because, as Obama stupidly opined, "You didn't build that."
However, in the real world, the vast majority of the people who live on riverbanks that get flooded again and again, only to have their homes cleaned up, repaired, or rebuilt as "necessary", courtesy of Uncle Sam, are the poor -- NOT the rich.
In the real world, the majority of the rich (I'll include the upper middle class here) got that way by (in the words of Ayn Rand) productive achievement. They DID build that, or worked a complex, competitive, stressful career for 40 or so years. Such people may well screw up once or twice, and may not be made whole by their insurance. (Witness how many beach houses have been destroyed by storms, and how many fancy houses in the brush have been burned down). Such tend to be the provinces of rich people.
Like it or not, rich people tend to be better educated and more able to draw on resources and adapt than poor people. When it becomes obvious that behavior like building beach houses is an economic disaster for the owner -- the rich folks will (mostly) cease doing that once they find it too expensive.
Meanwhile, the poor living in flood prone areas will tend not to move until forced (and someone else pays for it) -- because like it or not, because such behavior is strongly correlated with the poor. The people hanging out in an area devastated by Hurricane Sandy and refusing to move because they claim they can't afford it, for one example, are NOT, by and large, the rich.
I think he's referring to the poor worldwide, and he is right. They are generally forced to fend for themselves because they receive only minimal support from the rich.
The catch is that the rich actually need the poor to become wealthier, because expanding consumer markets is the ultimate guarantee of increasing income and returns on investment for the former. Increasing credit through financial speculation only leads to more economic instability.
In terms of survival, frugality is helpful. If one lives a life of luxury or is dependent on middle class conveniences, then there is a tendency that one will forget or not learn basic skills needed for survival and sustainability.