Who are the rich? With a few trust-fund, sports, and Hollywood exceptions, the rich are people like that businessman of my acquaintance: they always make money. It has been said that if you gathered all the money in America into a single pot, then divided it evenly between every citizen, in a few years the same people would be rich and poor again. No matter how limited or activist the government might be, the same people tend to end up at the top. The most dramatic changes occur in the middle and lower classes… the people who don’t always make money. They can’t evade higher taxes, or turn draconian government regulations to their advantage. They depend on economic growth to produce jobs for them, or create the conditions necessary for them to launch profitable small businesses.
Collectivist politicians have much to gain by increasing the size of the dependency class. The fundamental political purpose of State-controlled health care is to transform much of the middle class into the lower class. The economic damage from spending trillions of dollars on a monstrous new government program in the middle of a recession is a feature, not a bug. A middle class dependent on the benevolence of the State for its health care will become less troublesome, less independent, and less able to begin the climb into the upper class through small business formation. Fewer small businesses means fewer working poor rising into the middle class.