Centibillionaires

At the intersection of linguistics and economics we have an interesting and depressing new word: centibillionaire, defined as "a person with assets worth more than 100 billion dollars, pounds, euros, etc."*

How sad (or amazing, depending on your personal financial and socio-political outlook) is it that we need a word to denote the fact that we have at least five persons (as of this writing) who have such enormous wealth? That they can buy their own flight into space? That they can own multiple huge houses on several continents? That their wealth - in comparison to that of the average person working for them - is literally beyond comprehension?

The real question, which has been asked by people more educated than I in the science of economics and the morality of wealth, is how much is enough? How large does one's asset list need to be? How many homes, yachts, sports teams, paramours, and members of Congress does one person need to own?

The average Republican (who probably earns not much over minimum wage) would tell you that rugged individualism coupled with unbridled capitalism built the American society we all enjoy, and that those who have amassed staggering fortunes have earned the right to their luxuries by providing the wealth that has "trickled down" to the rest of us. They are not bothered by the fact that this is clearly hogwash.

Although it may seem like it, I really don't begrudge the wealthy their fortunes, to the extent that those fortunes have actually been earned rather than inherited. I do believe, however, that those who have amassed enormous fortunes have an obligation to see to the well-being of those whose work built those fortunes. If you're a Jeff Bezos with a fortune nearly beyond calculation, paying the workers in your fulfillment centers an average of $15 per hour is, at the very least, fair.

How much should an average worker be paid? That's a good question, and one on which there will never be agreement. In general, it's clear that a worker should be paid based on the level of skill and education required to do the job ... the chemical engineer who designs and operates production lines for critical vaccines probably deserves to be paid more per hour than the person sweeping the floors and cleaning the toilets at the factory ... even though both of those persons play important roles in the economic ecology. The idea of a minimum wage is not all bad, but ignores the economic fact that no one can support a family on $7.25/hour anywhere in the United States.

A better idea might be the living wage, which would allow a person to support a family of four, but - like the minimum wage - it will be different in different parts of the country, and it would be difficult to agree on what that wage might be and who should be empowered to calculate it. 

Which brings us back to the centibillionaires.

I personally think there's something wrong with the fact that many people in this country (including both members of many households with two working parents) must work multiple jobs to pay for food, rent, medical insurance, and utilities, with little left over to save for things like vacations and the education of their children. Do centibillionaires have a responsibility to share their wealth with those less fortunate? Legally, no. Morally, probably. How would they do it?

By paying their share of taxes, for one thing. Recent reports based on leaked IRS records show that the super-rich pay little - often no - taxes on their income, using a wide range of tax law advantages and loopholes not available to the average American. There is wide disagreement on what constitutes a fair level of taxation for the vastly wealthy, but the simple fact is that there has never been a serious attempt to address the issue. Our tax laws help the wealthy to increase their fortunes simply by allowing them to avoid taxes commensurate with the extent of their wealth.

I suppose this makes me a ... gasp! ... socialist (at least in the eyes of those who howl about socialism but really don't understand what it is). But I can live with that. I pay hefty taxes on my relatively small retirement investment returns and my military pension, and I can live with that, too. I don't need to be a centibillionaire ... I just want to be able to support my wife and I and live without fear that an unexpected bill will wipe us out.

If you're a centibillionaire, you don't worry much about that.

Have a good day. More thoughts coming.

Bilbo

* Contrary to what you might have thought, a "centibillionaire" is not one in need of more or better deodorant.