A Nation Divided
Two Americas? The idea is nothing new. We learn that almost 23% of Americans are open to the idea of seceding given the recent election results. And we’ve heard reports that 37 Chicago precincts, 59 Philadelphia precincts and multiple others in urban areas gave President Obama 99% support–some with 0 votes for Romney.*
Mark Hendrickson of Forbes notes that the largest divide is between city-dwellers and the rest of America:
Basically, the urban metropolises are Democratic blue and the vast expanse of most of the rest of the country is overwhelmingly red. If presidents were elected by acreage rather than by head count, Republicans would win national elections by landslides.
Look at it another way: take Philly out of Pennsylvania, the Big Apple out of New York, the Motor City out of Michigan, the Windy City out of Illinois, Cleveland out of Ohio, Milwaukee out of Wisconsin, St. Louis out of Missouri, etc., and a lot of blue states would instantly be red. What explains this pronounced and hugely significant partisan divide between urban and nonurban areas?
Hendrickson puts some stock in the so-called “Curley Effect“, named after the former Boston Mayor. Basically, it has two parts: first, that politicians provide enough incentives to their own voters to ensure continued support; second provide enough disincentives such that their political opponents decide to move out, thereby increasing said politicians vote share, etc. (Seems to be working in RI, too).
Yet, while that may explain continuing support for Democrats amongst those receiving government assistance and public unions, Hendrickson asks, “Why do affluent, white-collar, highly educated citizens in these cities tend to be liberal and vote Democratic?” In a word, insularity:
[P]eople who live in cities are relatively insulated from how difficult and challenging it can be to produce the food, energy, equipment, devices, etc., that comprise the affluence that urbanites enjoy. In their urban cocoons, city-dwellers take for granted the abundance and availability of the economic goods that they consume. For instance, many well-to-do, educated urbanites see no downside to supporting stricter regulations and higher taxes on energy producers, because to them, energy is something that is always there at the flip of a switch (except during the occasional hurricane, as some New Yorkers recently discovered). Life in the city for affluent Americans creates the illusion that all they have to do is demand something and—presto!—it will be there when they want it.
Affluent denizens of our metropolises see no inconsistency in supporting the Democratic jihad against “greedy corporations” and “the rich” while also expecting their every whim to be supplied, often by those same corporations and successful entrepreneurs. This is because they are removed from some of the harsher daily realities of life that confront those who are on the front lines of mankind’s ongoing economic struggle. They have forgotten that mankind’s natural state is poverty and that strenuous, heroic efforts are required to produce the astounding affluence and abundant paraphernalia of our modern, affluent lifestyles. To use Marxian terminology, urbanites have become alienated from economic reality.
Yes, we see it in urbanite political ideas and how they view such things as the estate tax:
Rancher Kevin Kester works dawn to dusk, drives a 12-year-old pick-up truck and earns less than a typical bureaucrat in Washington D.C., yet the federal government considers him rich enough to pay the estate tax — also known as the “death tax.”
And with that tax set to soar at the beginning of 2013 without some kind of intervention from Congress, farmers and ranchers like Kester are waiting anxiously.
“There is no way financially my kids can pay what the IRS is going to demand from them nine months after death and keep this ranch intact for their generation and future generations,” said Kester, of the Bear Valley Ranch in Central California.
Two decades ago, Kester paid the IRS $2 million when he inherited a 22,000-acre cattle ranch from his grandfather. Come January, the tax burden on his children will be more than $13 million.
For supporters of a high estate tax, which is imposed on somebody’s estate after death, Kester is the kind of person they rarely mention. He doesn’t own a mansion. He’s not the CEO of a multi-national. But because of his line of work, he owns a lot of property that would be subject to a lot of tax….
“The idea behind the estate tax is to prevent the very wealthy among us from accumulating vast fortunes that they can pass along to the next generation,” said Patrick Lester, director of Federal Fiscal Policy with the progressive think tank — OMB Watch. “The poster child for the estate tax is Paris Hilton — the celebrity and hotel heiress. That’s who this is targeted at, not ordinary Americans.”
But according to the American Farm Bureau, up to 97 percent of American farms and ranches will be subject to an estate tax where the exemption is set at $1 million. At that rate, the federal government will pocket $40 billion in 2013 and up to $86 billion in 2021. That contrasts with just $12 billion this year.
They think they’re going after Paris Hilton, but it is actually Old MacDonald and his kids–land rich and cash poor–who bear the brunt of the estate tax. But they know all about Paris Hilton (and so do the suburban and urban youth voters, incidentally) and don’t know much about farmers–unless of course they’re buying organic at the Whole Foods. It’s all about personal experience and it won’t change any time soon.
* Check out these results from Cuyhoga County in Ohio, for instance. There do seem to be some statistical anomalies amongst those results.