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Guest Dispatch: The Truth About Millionaires

It’s been a while since we featured a Guest Dispatch so today you’ll get a break from yours truly. South Florida Attorney and conservative activist Arthur Freyre has penned an item you’ll enjoy reading. It’s all about the evil 1%.

The Truth About Millionaires

By Arthur Freyre, Esq.

President Obama will give his nomination speech tonight and the general election season will be in full swing. If you listened to their speeches this week in North Carolina, you would have heard speaker after speaker railing against the rich. You would have heard how the Republican policies favor the 1%. How the 1% are looking to protect their money from not paying taxes and how they are looking to burden the poor.

The truth is far from the fiction that was presented in Charlotte this past week. How does one know this? Two university professors-Thomas Stanley and William Danko published a book in 1996. The book was titled, “The Millionaire Next Door.” This book provided the reader a far different picture about the American millionaire than what has been caricatured by politicians and the media. Among the eight characteristics, two characteristics stand out and have a profound impact on our economic policies. To learn more about his research, visit Dr. Stanley’s website.

The first characteristic is that eighty percent of American millionaires generated their wealth within their lifetime. Think about that for a second. Eighty percent of our millionaires had a dream. They risked their savings. They struggled, and in some cases they succeeded. If we strive to keep the American ideal, then we need an economic and regulatory policy that allows the entrepreneur to develop his or her business. We would need to review our regulations and eliminate those regulations that are not necessary and choke the incentive to become successful. This would require a thorough review of our regulations.

The second characteristic is that American millionaires value financial independence. Financial independence means little or no debt. Let those words sink in- little or no debt. They recognize that the typical status symbol of the big mansion, a personal jet, fancy cars are to be ignored if owning those items leads to huge debt. They recognized, on a small scale, that the security of one’s property was intimately linked to one’s freedom to quote from John Locke.

The notion of financial independence must be recognized in our tax policies. Placing financial independence at the center of our tax policy gives people the opportunity to save money. It recognizes that capital expenditures lead to job creation, not hoarding wealth. The failure to recognize that the millionaire’s priority is financial independence will lead to an exodus of wealth and capital. Consider California, a state where the extremely wealthy and the extremely poor can live. Or how about Illinois, a state where the legislature and its governor voted to increase its state income tax on small business owners. As a result of such action, small business owners have left Illinois for Indiana and Wisconsin.

The American millionaire is not a person who was born with a silver spoon in their mouth or won life’s lottery. They are individuals who had a dream. They risked what they had. In some cases they failed and tried again. In other cases, they became successful. Along this journey, they were motivated by the dream of becoming financial independent. A life not shackled by debt. Now if both political parties understood this, imagine the economic success our country can become.

 

  • Arthur, as Ronald Reagan said many time, we “should learn to look at our country through the eyes of the entrepreneur, seeing possibilities where others see only problems.” That is what makes America great. Thanks for the great post.

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