This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

The (Very) Rich Get (Much) Richer: Opinion

VANCOUVER ( Bullions Bull Canada) -- How do we define the term "obscenely wealthy"?

We start with people who already have more wealth than any humans in the history of our species. We then watch these people getting much wealthier, much faster than anyone else on the planet. And then we listen to them lusting for even more wealth.

No one does a better job of illustrating obscene wealth than the lovers-of-Big-Money at Bloomberg. Its recent headline summarizes this attitude perfectly: Billionaires Worth $1.9 Trillion Seek Advantage in 2013.

We have a handful of Oligarchs sitting on a mountain of wealth large enough to completely eliminate global poverty -- with enough left over for they and their entire family clans to live lives of perpetual luxury.

However, this is not the truly "obscene" aspect of this paradigm. The true obscenity lies in the fact that these Oligarchs remain obsessed with getting much richer, much faster and at the expense (literally) of everyone else.

Again, Bloomberg illustrates this for us with perfect clarity. It notes that these billionaires who were worth roughly $1.65 trillion at the beginning of 2012 are now worth $1.9 trillion at the end of 2012. That's approximately a 15% increase in their total wealth, in one year, after paying(?) their taxes, and after all the lavish spending which characterizes the life of the average billionaire.

How many of the Working Poor got 15% wealthier last year after paying their taxes and all their living expenses? Zero? Indeed, only the most entrepreneurial (or crooked) millionaires would have been able to increase their wealth at the obscene rate of these billionaires.

Yet, what do we hear out of the mouths of billionaires like Warren Buffett? "Tax the millionaires."

Specifically, tax the income of the millionaires (much harder). Note that the billionaires also have large incomes. However, once one acquires this obscene level of wealth, "income" becomes a trivial element of their total wealth.

Few billionaires have annual (taxable) "incomes" above $50 million/year. Yet, for even a 'bare' billionaire this amounts to only 5% of their total wealth. So how did all of these billionaires get wealthier by an average of 15% last year alone? The untaxed appreciation of their vast assets.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,811.54 -3.40 -0.02%
S&P 500 2,070.72 +3.69 0.18%
NASDAQ 4,780.3870 +22.1350 0.47%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs