12/3/2014
By Charles Payne

The discussion about capital, and how to stem the flow of all the money going to the top, is all the rage these days, and will only dominate our daily conversations more as we move toward the next presidential election.

Thomas Piketty's book: Capital in the 21st Century took liberals and progressives by storm like a modern-day booster shot as the French author was deemed the second coming of Karl Marx.  This time, armed with reams of data going back to the 18th and 19th century, Piketty picked up on the notion of patrimonial capitalism, which Paul Krugman says, is the "dominance of income from capital, which can be inherited, over wages or the dominance of wealth over work."

So, the solution is a giant global wealth tax that  is supposed to make sure each generation starts at Go with the same amount of money and presumably opportunities.

The one percent own larger percentages of the wealth pie than they did in the past, but the one per-centers are not the same people, and the pie is significantly larger, too.

In some ways, this debate could be called the greed of the 99%.  Yes, most of us want more and wish it were easier.  Getting ahead in life should not be this hard, but it is in part because of remedies to so-called income inequality.  Higher taxes, more regulations, more social welfare programs, watered -down education were promised elixirs of the problem...check anywhere in the world where they have been implemented and you will see amazing gulfs between the haves and the have-nots. The solution is capital...but not just the one form that comes to mind.

But what is capital?

Social- the networks of people we surround ourselves with including our family, friends, and community that can enhance or detract our ability to take advantage of opportunities.

Human- natural ability, skills, and education acquired through life, plus personal traits known as "character."

Financial- this form of capital is the one progressives are railing against, but can be gathered through savings and borrowing.

There are so many facts missing from this last-ditched effort to take from the rich and fill the coffers of the elites, while sprinkling a few crumbs on the poorer masses.  Perhaps, it is no fun to read and see the adventures of the rich and famous, but you can be there too...although, it takes longer if you have not invented a killer app.

Here are three key facts progressives never want you to know:

• Most of the 1% are self-made.
• Rewarding people for being poor more often than not keeps them poor.
• All this crap has been tried before and has failed mankind miserably.

Surround yourself with like-minded people determined to look at the person in the mirror for change, not the mailman or some fast-talking (or slow-talking) politician.  Learn, learn, and learn some more, and become a weapon of knowledge.  Then begin to invest in these things and control your own destiny.

Charles Payne
Wall Street Strategies

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