# The Truth about the 1%



## sags (May 15, 2010)

For those who feel compelled to rise to the defense of the 1%........you may want to read this article from the New York Magazine.

Apparently, the wealthy get together once in awhile in secret fellowship..........to mock and disparage the other 99%.

Excerpts from the article.........after the reporter was discovered and escorted out of the room.

_Once we made it to the lobby, Ross and Lebenthal reassured me that what I’d just seen wasn’t really a group of wealthy and powerful financiers making homophobic jokes, making light of the financial crisis, and bragging about their business conquests at Main Street’s expense. No, it was just a group of friends who came together to roast each other in a benign and self-deprecating manner. Nothing to see here.

But the extent of their worry wasn’t made clear until Ross offered himself up as a source for future stories in exchange for my cooperation.

“I’ll pick up the phone anytime, get you any help you need,” he said.

“Yeah, the people in this group could be very helpful,” Lebenthal chimed in. “If you could just keep their privacy in mind.”

I wasn’t going to be bribed off my story, but I understood their panic. Here, after all, was a group that included many of the executives whose firms had collectively wrecked the global economy in 2008 and 2009. And they were laughing off the entire disaster in private, as if it were a long-forgotten lark. (Or worse, sing about it — one of the last skits of the night was a self-congratulatory parody of ABBA’s “Dancing Queen,” called “Bailout King.”) These were activities that amounted to a gigantic middle finger to Main Street and that, if made public, could end careers and damage very public reputations.

After several more minutes spent trying to do damage control, Ross and Lebenthal escorted me out of the St. Regis._

http://nymag.com/daily/intelligencer/2014/02/i-crashed-a-wall-street-secret-society.html


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## lightcycle (Mar 24, 2012)

Is 1% a synonym for people who work on Wall Street only?

Because the cutoff for the top 1% of earners in Canada is $191,000 in income. It includes doctors, lawyers, veterinarians, scientists and engineers.

Do scientists also get together in fancy hotel parties and mock the 99% of people that earn less than they do? Because if they do, then "Off with their heads!!!"

Those ******* 1% Eggheads...


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## sags (May 15, 2010)

The 1% refers to the 1% of the population who own 43% of the wealth.

In reference to the 1% as wage earners...........the average wage is $717,000 per year.

At the low end are the top level doctors and lawyers at $300,000 per year.

At the top end of the 1% wage earners............the average wage is $5,200,000 - $7,000,000 per year.

The top 400 wage earners in the US pay an average personal tax rate of 18%.

http://www.forbes.com/sites/moneywisewomen/2012/03/21/average-america-vs-the-one-percent/

As noted in the previously linked article...........

"_Looking up at him from an elegant dinner of rack of lamb and foie gras were many of the most famous investors in the world, including executives from nearly every too-big-to-fail bank, private equity megafirm, and major hedge fund. AIG CEO Bob Benmosche was there, as were Wall Street superlawyer Marty Lipton and Alan “Ace” Greenberg, the former chairman of Bear Stearns. And those were just the returning members. Among the neophytes were hedge fund billionaire and major Obama donor Marc Lasry and Joe Reece, a high-ranking dealmaker at Credit Suisse. [To see the full Kappa Beta Phi member list, click here.] *All told, enough wealth and power was concentrated in the St. Regis that night that if you had dropped a bomb on the roof, global finance as we know it might have ceased to exist.*_"


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## sags (May 15, 2010)

Dressing in drag......mocking the taxpayers who bailed them out.....off color jokes.......

This is what the wealthy elite do when they think nobody is watching?

Reminiscent of the past behavior of the wealthy elite in previous world powers..........just before their empires collapsed.

Greed, avarice and a complete lack of principles or a moral compass......with the almost "elite" clamoring at the doors to get invited in.


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## OptsyEagle (Nov 29, 2009)

and you think there is no one in the 99% that would do the same. I'll guarantee you, some Olympic gold medal winner took a moment to mock some poor guy who came in last. Someone who wiped out in the snow, fell on his behind on the ice.

Rich or poor, we are still dealing with human beings. The rich will always annoy the poor and in a lot of respects, the poor will annoy the rich. This is because human's seem to be able to build themselves up by bringing others down. I don't know why this is the case, but no amount of money or lack of, changes the species they belong to.


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## RBull (Jan 20, 2013)

This is very disappointing to read but not surprising. However, it's probably a classic generalization to suggest all of the 1% fit the description the author is trying to suggest. 

I've heard plenty of people at various stations in life acting in similar ways, trying to make themselves out to be much better or smarter than the other guy. 

At least we can always count on you Sags to champion the underdog and keep the wealthy and corporate elite in check.


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## Canadian (Sep 19, 2013)

Sags, those figures aren't surprising given the article uses averages. Averages are often skewed - the median would have been a better indicator (though, may not have delivered the same hype factor). Let's use the following example - we have a sample of five 1%-ers - their incomes are as follows:

Individual #1: $10B
Individual #2: $5M
Individual #3: $900K
Individual #4: $600K
Individual #5: $300K

This population has a mean of a little over $2B, yet has a median of $900K. Looking at the income distribution among these five individuals, which do you think depicts a better representation? One can easily set the tone depending on the statistic chosen.

_The top 400 wage earners in the US pay an average personal tax rate of 18%_

Sure, using percentages makes the situation seem alarming - but translate that into dollar figures and you will see how much tax revenue many of the high income earners actually contribute. Many of those in the middle class can attain low average personal tax rates (or refunds) too if they contribute to registered accounts or take advantage of other tax breaks.

_Dressing in drag......mocking the taxpayers who bailed them out.....off color jokes.......

This is what the wealthy elite do when they think nobody is watching?_

I don't doubt that _some_ of them do this - but do you think it's fair to say that _all_ 1%-ers do this? I doubt it.

These types of articles are written to bring hype and controversy. They're not wrong, but they are written with the intention to shock. If one digs deeper, most is actually not very shocking.

This article also focuses on the US. If you look at the global 1%, you will see a much different picture (http://www.dailymail.co.uk/news/article-2082385/We-1--You-need-34k-income-global-elite--half-worlds-richest-live-U-S.html).

While I recognize income and wealth is concentrated among the "elite," I'm certainly not going to gripe and take to the streets in an occupy movement. Remember how much many of these "elites" give back, via The Giving Pledge, for example. Many companies these "elites" control have also come a long way over the past few decades in terms of giving back to communities and the environment. Sure, things aren't "fair," but I disagree that they are as grim as depicted in the Forbes article.


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## tygrus (Mar 13, 2012)

You should point out that the 99% like having the 1% lording over them. Its called the American dream, striving to be something you will never be. Its endemic in our professional sports and entertainers as well as CEOs. We like giving them our money and they in turn get wildly rich off it and exert more power and control. When people stop paying $100 per ticket to see people play a game or a terrible movie or buy Oprahs crap etc, then I will sympathize.


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## Toronto.gal (Jan 8, 2010)

How about some honest truths about the 99% for a change? :rolleyes2:


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## Nemo2 (Mar 1, 2012)

The Truth About the 'One Percent'

http://online.wsj.com/news/articles...9352551767664072.html?mod=WSJ_Opinion_LEADTop



> The typical "rich" person today is someone who works for a salary and accumulates stocks and bonds through savings, retirement plans and (for business executives) stock options.





> The individual income tax accounts for slightly less than half of federal revenue and the top 1% already pays a substantial share of that total. Most of the wealth owned by the top 1%, and especially by the "super rich" in the top 0.1%, is also held in stocks, bonds and real estate that are not subject to income taxes until sold. It is a fool's errand to try to raise the living standards of the bottom 60% through higher income taxes on the top 1% or 0.1%.
> 
> The shift in incomes in favor of the wealthy has been due to several large forces, including a world-wide boom in asset prices, the rise of global markets, and technological innovation that has increased the earning power of the well educated. These have been positive—not negative—forces that have elevated living standards around the globe.
> 
> *At a time of slow economic growth, mounting government debt, a stalemated politics and the impending retirement of the "baby boomers," the attacks on the "one percent" look more and more like a diversion from the nation's real problems.*


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## Synergy (Mar 18, 2013)

sags said:


> At the low end are the top level doctors and lawyers at $300,000 per year.[/B][/I]"


Top level doctors and lawyers making $300K per year, that's a good joke - try 2-3x's that amount :encouragement:


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## sags (May 15, 2010)

There are lots of wealthy people who wouldn't be caught dead with the group described in the article, but these particular "Wall Street" clowns were responsible for bringing the world financial system to it's knees.........losing Trillions of dollars of investor money..........and millions of Americans losing their homes and retirement funds.

I hope the article gets picked up by the main street media..........and they are embarrassed as all heck by it, but I doubt it.

They own most of the media.

And yet, still within that room of hysterically funny off color jokes and grown men who like to dress up like women...........they control the fortunes of the world.

How lucky we are...........to have our fate in their hands.


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## richard (Jun 20, 2013)

Little known fact: the ancient symbol for the Illuminati looked like "1%", which is where we got our modern numbers and symbols from. They decided to control our writing especially when it comes to financial matters. We will never be free.


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## sags (May 15, 2010)

The author of the article also posted a list of the members of the secret society.......Kappa Beta Phi.

Here is the list........Grand Swipes, Grand Smudges, and of course the Grand Loaf.

Note the "Neophyte" class of 2011.

http://nymag.com/daily/intelligencer/2014/02/revealed-members-of-kappa-beta-phi.html


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## tygrus (Mar 13, 2012)

You need to better distinguish people who are wealthy. 

There are a group of people who provide services to the general public and create businesses that produce a need for the average person. 

Then there are the people who live off the fluctuations in markets, speculation, day trading, inflation, currency and the dreams of being rich from the 99%.


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## sags (May 15, 2010)

Perhaps I should have confined the headline to "this group of 1%ers" as they obviously represent a fairly small........but a significantly wealthy and powerful minority to control much more than they should be entrusted with.

My apologies to Warren Buffet......Bill Gates.......and others who still live in the real world and seek to use their wealth for the betterment of society.


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## Canadian (Sep 19, 2013)

sags, I still don't understand why you're trying to rationalize that the top 1% is such a small group. If you want to focus in on the US - _one_ country - its population is currently ~317M people. The top 1% then includes almost 3.2M people - that is more than the city of Chicago (or we can put it in a Canadian perspective and say it is more than the _city_ of Toronto). Now, do you really think the article represents the majority of this 3.2M population?

Besides, why don't we have a discussion about the remaining 99%? Isn't it time they get their moment in the spotlight? Do you think that the remaining ~314M US citizens are all subject to the mercy of the evil 1%? Do you think the 99% would be more moral or better entrusted with the control over wealth and assets?

Again, I stress this because these types of articles are written for hype and the story - not investigative journalism.


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## Retired Peasant (Apr 22, 2013)

http://www.globalrichlist.com/


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## sags (May 15, 2010)

I'm not sure I follow your post Canadian........but that is probably my fault due to mental distraction.

Although I used to enjoy watching Wilbur Ross on the business news channels..........I don't think I will ever get the image of him strutting around in a pink evening gown out of my head.


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## Longwinston (Oct 20, 2013)

sags said:


> Dressing in drag......mocking the taxpayers who bailed them out.....off color jokes.......
> 
> This is what the wealthy elite do when they think nobody is watching?
> 
> ...


sags, you seem obsessed with the wealthy. Why? Do you feel their wealth precludes you from being wealthy? Do you view it as a zero sum game?


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## sags (May 15, 2010)

It would be pointless to continue the debate.

The facts are there. People can interpret them as they wish.


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## Canadian (Sep 19, 2013)

The wealthy pay a lower average tax rate but pay more taxes in dollar terms. Sure, say it's not fair - but they do pay quite a bit. Look what happened when France tried to impose its exorbitant 75% marginal tax rate for wealthy individuals - many executives packed up and lived in neighbouring countries with lower tax rates and continued doing business in France.

I'd like to argue that the bailouts did not only benefit the wealthy. Aside from playing the blame game, choosing _not_ to bail out these companies would have left many, many more of the 99% unemployed and worse off.


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## Longwinston (Oct 20, 2013)

Sags, the truth is YOU are the 1% of the people in the world today. If you include the people who have lived since the time of civilization, then Sags, you are actually among the 0.0001%.

Instead of counting your blessings you choose to seemingly begrudge those 0.00001%. My point is that it is pointless and destructive, for you. Envy is a poisonous thing.

Count your blessings and know that the comings and goings of today's elite impact you very, very little if any so why care?
I wish there were more fabulously rich people around not less, and other than that don't give them a second thought.

Cheers


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## donald (Apr 18, 2011)

A vast majority of the ''1'' % is inherited,so in my view it was a ''random'' draw(call it ''god'' giving each each person a *lot* in life or random)
I side with longwinston-the 1 % are human also and have challenges/problems just like everybody else(might not be the variety of trying to make a mortgage payment but you can be fairly certain i believe all that glitters in not always gold)
some of the toughest lives are prob found amongst the 1%...........seriously if you think about it logically.


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## lightcycle (Mar 24, 2012)

sags said:


> It would be pointless to continue the debate.
> 
> The facts are there. People can interpret them as they wish.


The fact is that asshats exist across all over the socio-economic spectrum. Just because the article focused on a bunch of asshats that happened to be 1%ers doesn't mean that asshats don't exist in the rest of the 99% of the population, or that good-hearted people can't be rich.

It's just that if the article was about the latter, you probably would't read it...


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## donald (Apr 18, 2011)

quote from felix dennis billionaire 1 %
"let me repeat one more time.Becoming rich does not guarantee happiness.In fact,it is almost certain to impose the opposite condition
-if not from the stresses and strains of protecting it,then from the guilt that inevitably accompanies its arrival"
quote from andrew carnegie 
"there is no class so pitiably wretched as that which possesses money and nothing else"

I could find countless quotes and bio's of really rich people and they all say it is not what it seems lol
Who knows.....food for thought on vast wealth.
as a group they are also generally hated by nearly all.


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## lightcycle (Mar 24, 2012)

donald said:


> as a group they are also generally hated by nearly all.


So true. Money doesn't automatically make you an *******, but envy certainly amplifies the *perception* that you are.


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## Longwinston (Oct 20, 2013)

lightcycle said:


> So true. Money doesn't automatically make you an *******, but envy certainly amplifies the *perception* that you are.


Yes. Envy is an ugly and natural emotion that everyone needs to control.


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