1. Are Billionaires Good for America?
Presentation to Hanover Rotary Club
By Wayne Gersen
January 9, 2019

2. Are Billionaires Good for America?
The short answer is: NO

3. Overview of Presentation
How Much is a Billion?
How Do Billionaires Hurt Our Country?
They exacerbate the economic divide
They undercut democracy
They seek to pass laws that maintain the economic status quo
The Ultimate Political Question: How Much is Enough?

4. How Much IS a Billion???

5. How Much IS a Billion???
If you earn $100,000/year
If you earn $1,000,000,000/year
Rotary Lunch costs $18.00
Paul Harris Fellowship is $1,000
I need to make another $28,400 to hit the maximum taxable limit
I get a job that pays me 10 times as much as I get now to earn $1,000,000
I need to make another $900,000 to become a millionaire
Rotary Lunch costs $.0018
Paul Harris Fellowship is $ .10
I hit the maximum taxable limit of $128,400 in 15 minutes
I earn $1,000,000 in a couple of hours
I need to lose $999,000,000 to become a millionaire

6. How Do Billionaires Hurt the Country? They Widen the Economic Divide

7. AND… When the Economic Divide Widens, The Political Divide Follows

8. The Gini Coefficient Measures Inequality
The Gini coefficient is a single number aimed at measuring the degree of inequality in a distribution. It is most often used in economics to measure how far a country's wealth or income distribution deviates from a totally equal distribution.
The Gini coefficient can theoretically range from 0 (complete equality) to 1 (complete inequality)
Therefore… when wealth is concentrated, the gini coefficient is high

9. Because US Wealth in Increasingly Concentrated, the Economic Divide in the US IS Relatively Wide

10. It HAS Been Worse Before… BUT… It’s Headed in the Wrong Direction NOW

11. AND… When the Economic Divide Widens, The Political Divide Follows

12. How Do Billionaires Hurt the Country? They Undercut Democracy
VICIOUS CIRCLE OF TAX CUTS
Loss of tax revenues due to “economic development incentives” diminishes effectiveness of government… but increases profits
Privatization of public services increases impact of economic divide but increases profits
Unilateral philanthropy replaces democratic decision making AND increases profits

13. Lower Budgets Reduce Effectiveness of Government Services
How Do Billionaires Hurt the Country? They Undercut Democracy By Reducing Government Revenue
Tax Cuts + Economic Development Incentives Reduce Government Budgets But Increa$e Profit$
Lower Budgets Reduce Effectiveness of Government Services
Privatization of Public Services Reduce Democratic Control but Increa$e Profit$
Philanthropists Determine Spending Priorities Instead of Governments AND Increa$e Profit$

14. How Do Billionaires Hurt the Country
How Do Billionaires Hurt the Country? They Undercut Democracy By Reducing Government Revenue
Tax Cuts + Economic Development Incentives Reduce Public School Budgets
Lowered Budgets Reduce Effectiveness of Public Schools
Lower Cost Deregulated For-Profit Charter Schools Proposed as Option for "failing public schools"
Philanthropists Determine Spending Priorities Instead of School Boards
Case Study:
Privatization of Public Schools Illustrates How Vicious Circle of Tax Cuts Reward Billionaires, Open “New Markets” for them to increase their fortunes

15. The Philanthropy Paradox: Philanthropists Get to Decide What’s Important

16. The Philanthropy Paradox: But … Don’t Ask How They Got Wealthy!

17. The Philanthropy Paradox

18. How Do Billionaires Hurt the Country
How Do Billionaires Hurt the Country? They Promote Laws That Add to Their Wealth
Support for local, state and national candidates who favor their agendas
Support for “think tanks” who generate “white papers” that promote their agendas
Acquisition of media outlets that promote their agendas
ALEC legislation that promotes privatization, deregulation, tax cuts for businesses and wealthy

19. The Ultimate Political Question We AREN’T Asking: HOW MUCH IS ENOUGH?
For setting income tax brackets?
For setting the maximum taxable limit for social security?
For corporate tax breaks at ALL levels?
For privatization of public services? (i.e. Police? Fire departments? Highways? Schools? Etc, etc)
For deregulation? (i.e. for safety? the environment? Wages and working conditions? )
For safety at all levels? (i.e. for defense? Hardening schools? Police? Fire departments? )

20. The Floor is Now Open: HOW MUCH IS ENOUGH?
For setting income tax brackets?
For setting the maximum taxable limit for social security?
For corporate tax breaks at all levels?
For privatization of public services? (i.e. Police? Fire departments? Highways? Schools? Etc, etc)
For regulations? (i.e. for safety? the environment? Wages and working conditions? )
For safety at all levels?