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Posted on Jun 12 2017 in Outreach and Education Working Group

We’re Rich and We Are Part of the Problem/Solution

We’re Rich and We Are Part of the Problem/Solution

In the problem lies the solution

Bobos in Paradise: Stop Pretending You’re Not Rich

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The rhetoric of “We are the 99 percent” has in fact been dangerously self-serving, allowing people with healthy six-figure incomes to convince themselves that they are somehow in the same economic boat as ordinary Americans, and that it is just the so-called super rich who are to blame for inequality.

The American myth of meritocracy allows us to attribute our position to our brilliance and diligence, rather than to luck or a rigged system.

In the United States, the most liberal politician can pay for a lavish education in the private sector. Some of my most progressive friends send their children to $30,000-a-year high schools. The surprise is not that they do it. It is that they do it without so much as a murmur of moral disquiet.

Beneath a veneer of classlessness, the American class reproduction machine operates with ruthless efficiency. In particular, the upper middle class is solidifying. This favored fifth at the top of the income distribution, with an average annual household income of $200,000, has been separating from the 80 percent below. Collectively, this top fifth has seen a $4 trillion-plus increase in pretax income since 1979, compared to just over $3 trillion for everyone else. Some of those gains went to the top 1 percent. But most went to the 19 percent just beneath them.

There’s a kind of class double-think going on here. On the one hand, upper-middle-class Americans believe they are operating in a meritocracy (a belief that allows them to feel entitled to their winnings); on the other hand, they constantly engage in antimeritocratic behavior in order to give their own children a leg up. To the extent that there is any ethical deliberation, it usually results in a justification along the lines of “Well, maybe it’s wrong, but everyone’s doing it.”

The upper middle class is also doing lots right, not least when it comes to creating a stable family environment and being engaged parents. These are behaviors we want to spread, not stop. Nobody should feel bad for working hard to raise their kids well.

Things turn ugly, however, when the upper middle class starts to rig markets in its own favor, to the detriment of others. Take housing, perhaps the most significant example. Exclusionary zoning practices allow the upper middle class to live in enclaves. Gated communities, in effect, even if the gates are not visible. Since schools typically draw from their surrounding area, the physical separation of upper-middle-class neighborhoods is replicated in the classroom. Good schools make the area more desirable, further inflating the value of our houses. The federal tax system gives us a handout, through the mortgage-interest deduction, to help us purchase these pricey homes. For the upper middle classes, regardless of their professed political preferences, zoning, wealth, tax deductions and educational opportunity reinforce one another in a virtuous cycle.

Progressive policies, whether on zoning or school admissions or tax reform, all too often run into the wall of upper-middle-class opposition. Self-interest is natural enough. But the people who make up the American upper middle class don’t just want to keep their advantages; armed with their faith in a classless, meritocratic society, they think they deserve them. The strong whiff of entitlement coming from the top 20 percent has not been lost on everyone else.

For Americans to solve the problem of their deepening class divisions, we will have to start by admitting their existence and our complicity in maintaining them. We need to raise our consciousness about class. And yes, I am looking at you.

Richard V. Reeves (@RichardvReeves) is a senior fellow at the Brookings Institution and the author of the forthcoming book, “Dream Hoarders: How the American Upper Middle Class Is Leaving Everyone Else in the Dust, Why That Is a Problem, and What to Do About It.”

By Source, Fair use, https://en.wikipedia.org/w/index.php?curid=1882361