Which Social Class Benefits from Each Political Party? #Finance

where Justice is denied where poverty is enforced where ignorance prevails and where any one class is made to feel that Society is an organized conspiracy to oppress Rob and degrade them neither persons nor property will be safe Frederick Douglas in my CashNews.co where I talked about old

money paradoxically siding with the left a big question I got in the comments was well where do the other classes align with if the old money paradoxically benefits from leftwing policies is it true that other classes have unexpected allies in partisan politics well in this CashNews.co I’m

going to go over the entire American class hierarchy and depending on what station in life each individual fits in which of the major two political parties in America has an economic policy that works in their best interest and for this CashNews.co I’m really going to be focusing on economic

policy there could be social issues that could cause somebody to align outside of their class’s financial interests also on top of that there could be very Niche specific government projects that could benefit somebody economically that may not cross on these lines either and immigration for

the sake of argument for this CashNews.co is considered an economic issue on top of that this doesn’t necessarily apply to politics outside of the United States because they have different class structures and they have other issues that dominate so with that out of the way let’s get

started with the bulk of the analysis well at the top of the pyramid you have the establishment Elite and historically The Establishment Elite was split 50/50 between the right and the left however in recent elections it has shifted more to aligning with the left for reasons why I mentioned in the

previous CashNews.co I’ve discussed about old money political allegiances but that does not mean 100% of them there still are plenty of old money families even in the Northeast in California who still align with the right however from a class alignment interests the the current platform of

the political left in the country tends to to cater to Old money’s interest more than the right the counter Elite on the other hand are definitely more aligned with the right side of the aisle the counter Elite has mostly built its wealth through entrepreneurship through not participating in

the major corporations or the government or other institutions that are controlled by the establishment Elite and the establishment Elite want to keep their control and influence so they keep out the counter Elite or other new money who does want want to participate in the establishments club and

the way they do things Elon Musk for example is a good example of a counter Elite entrepreneur he bought X and changed it in a way more angled towards free speech and more sympathetic to right-wing causes and his unwillingness to conform to a lot of the moral niceties that the establishment Elite

takes for granted even if he was previously somebody with more Progressive politics kind of by default put him in the counter Elite bucket and Elon Musk I mentioned him specifically because his story is similar to a lot of other people in the counter Elite who’ve kind of been forced there

because they wouldn’t kiss the metaphorical ring to fit in and the right in America now is kind of the anti-establishment rebellious type of people have flocked to it or people built their own means outside of the system and don’t feel like they should have to just give it all up to

preserve the goals of the establishment Elite and in general with these two pyramids the left side which is the establishment track and the right side which is the anti-establishment track for Building Wealth and success and I went into more detail of this on my CashNews.co on the American social

class hierarchy tend to be where the Divide is in modern Politics the left side you really simple as people whose education attainment tends to be greater than earnings power and the people on the right tend to be people whose earning power is greater than their educational attainment it’s

also going to apply to prestige on resume so people whove worked at like the most prestigious Fortune 500 companies or the most prestigious nonProfits or NOS or have experienced working in Washington and high level government positions are on tend to be on the left side of this cus

hierarchy so people who built their own path with spending minimal time time in the institutional metrics of society or didn’t spend any time in that society and just always worked either at small businesses or started their own business tend to be the pipeline to the counter Elite and this

Dynamic of whether somebody’s status should be based on credentials whether it’s education or the level of prestige of your employment tend to be more align with the left which basically kind of is that everybody has a certain place and it should be detered based on how well you did at

University or check certain boxes that are socially acceptable or trendy whereas the other side is like I don’t want to follow those rules I want to build my own way I may make more money but I’m not respected because I didn’t go through the quote unquote respectable path and so

those are the probably the two forces that are driving the leadership on the the left and the right and you can see this just how each group behaves the left is more by the book doing things through the proper institutions and whereas the right is the bull in the china shop right now wants to break

all the rules and that’s kind of how and let things be free and have again the Liber some of my commenters said the LI more libertarian free-for-all in terms of how Merit should be distributed and how people and how wealth should be gained in our society the middle class and the cleric such

the clerical class it kind of depends on what track they’re going on here those who are on the track to try to move up the establishment tend to benefit more from the left whereas the middle class who wants to try to pursue a path on their own benefits from being on the right however in

general I would say the middle class benefits more from right-wing Economic Policy their tax burdens go down because of it lower immigration rates means that they have less competition for jobs and they’re far enough away from the social safety net that they’re not going to be using it

much in their lifetime and if they do it might be for more smaller things such as instate college education and less tied to the welfare industrial complex in one ways or another and so therefore the middle class tends to benefit from more right-wing economics terms of lower taxation more

competition if these any of these people want to pursue an entrepreneurial path math it’s the right is more facilitative towards that however at the same time they’re not going to ever make enough money that the benefits of progressive taxation are going to start to work in their favor

but they’re not going to really get be poor enough to get the benefits from social Protections in Europe this would be a different calculation in Europe they probably the middle class would be more line with the left because a lot of the social benefits and protections there trickle up and

are given a lot more to conventionally middle class people whereas in America most middle class people won’t really get any sort of benefit from the state in their lifetime apart from maybe in state tuition while they’re in college the working and the precariat class they’re

definitely their economic interests are aligned with the left especially in the shortterm a lot of the things here in terms of economic policy for really even the middle class too recently as the econom is getting more precariat but more so for the precariat class because the working class and the

precariat class are people who are basically can’t really save money and they’re one or two missed paychecks away from being on the street and that level of insecurity and the security of a bigger safety net really means something to these people because they’re more likely to

have to tap into it and they probably have friends or family who’ve had to tap into it and the security let’s just say like if they knew that their health care is guaranteed and they had rent controls or other protections they would that would lower their stress and they would feel a

lot more secure yet the pro the real especially with how progressive tax brackets are relatively in America their Income is likely not going to get high enough that they get hit hard by the high tax brackets and really face the real downside of a progressive taxation system to

Finance these so this class is probably the strongest beneficiary of the left but that the same time though a lot of it is shorter term and because even though say for ex

these leftwing policies in the short term provide an extra sense of security and often times increase real worth wealth in the short term through economic stimulus in the long run the losses from Inflation tend to outweigh the gains from The increased safety net or even worse if

Inflation continues high enough because of the deficit spending need to Finance this thing it could move these Working precariat Class People down into the

underclass and then they’re stuck so it’s really kind of a dangerous bargain the to support left-wing populism because for the lower three classes in this chart it benefits them in the short term because they get relief that they might need now if they’re especially the precaria

if they’re desperate and they need that need help or need a sense of security to feel comfortable navigating in the world or just have their family get by for another year or two however in the long run those gains that they’re being

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Financed from Inflation or higher Taxes particularly higher Taxes that directly affect the lower classes because there’s just simply not enough money to tax from

the elites to cover all of these things they end up paying for it in the long run immigration is also another economic policy that appears to be beneficial for most of the social classes in the economy in the short term but in the long term tends to hurt most social classes except for the

establishment Elite and the business owning classes I can get into more on the economics of immigration and develop nations in a separate CashNews.co but in general it boosts the economy in the short term due to increased demand from new consumers coming in and more demand whether it’s for

more Apartments need to be rented more food need to be bought at the grocery stores more consumer goods to be bought more gas spent at the gas stations Etc and on top of that it can help keep wages from rising too quickly and causing potential Inflation problems or provide enough

services for retirees as the natural population Cliff pyramid tends to invert however in the long run immigration does is that it keeps demand above a sustainable level for the economy particularly with a lot of regulations against housing construction and urban development so the result is you

have a higher cost of living increases than you would otherwise because you have more people competing for the same amount of Housing and other essential services and also on the other hand you have more people competing for the same amount of jobs and so the result is Wages tend to drop across the

entire system unless if you are a business owner employing these immigrants and so immigration in the short term it keeps the economy afloat and delays a recession potentially and also just by increasing demand for more perishable goods and services but in the long run it increases the price level

while suppressing wages so it has a similar effect to other economic populist policies whereas the same CL except the benefits of immigration tend to skew up the class ladder the bottom class who’s dependent on the state is not really affected by immigration unless if the social safety net is

just destroyed because it can’t handle the inflows of new people if you have a smart enough immigration policy that limits like dependence on the state from coming into the country that that’s not an issue the people who are hurt most from immigration are from purely economic I’m

not getting the cultural issues here are the working class and the middle class and the professional classes and then the main beneficiaries are the elites and the business owners who now have a bunch of new customers and or cheaper sources of Labor so that’s another so it’s not exactly

the same in terms of the winners and losers but it’s it’s close enough that it has the same intertemporal struggle with a lot again a lot of economic popul policies and a lot of leftwing policies open immigration is a left-wing policy from in the Western World tend to be stimulative in

the short term but detrimental in the long term for the same people so it’s really an intertemporal issue in the short term the middle and working classes benefit from left-wing policies and in the long term they get hurt once the costs are fully trickled into the system and it’s

actually the opposite for the Elites in the short term the elites get hurt by leftwing policy because they have to pay higher Taxes or they’re going to face more business regulation but in the long run they benefit because those same high Taxes and increased

business regulation are barriers to entry for competition of new money or new businesses or other disruptors that could knock them off their Purge so it’s the intertemporal relationship between Progressive policies is the reverse and then the bottom is the underclass those just dependent on

the state or outside the formal economy they benefit also from leftwing policies on the net in in the both in the short term and the long term they’re really in inter temporal because yeah sure they’ll suffer from Inflation but since their wages are low anyway wages

generally tend to catch up better with Inflation than more middle class or higher wage jobs like between the level of the elite SL successful business owner level and the under like if you’re below that like you’re in the middle class or the working class you’re

are the wages who suffer the most versus Inflation in Inflationary environments whereas the underclass they tend to hold up a little bit better and also a lot of their benefits such as food stamps or subsidized housing or other things are payment in kind and

payment in kind moves up with Inflation so they’re not as hurt by Inflation as the higher classes are so they underclass is actually the one who always benefits from left-wing policy and so their economic interest align with the left so overall what does this

mean for the balance of politics well it’s usually leads to suboptimal decisions in terms of Economic Policy because if you look at it in the short term the bottom three classes the underclass the working class the middle class and I add the institutional professional classes in the short

term like short term I’m saying 3 years or less time frame tend to benefit from economic leftwing and populist policies and those groups combined exceed 70% of the population in the United States of America and probably similar ratios if not higher in other parts of the world and so as a

result their short-term economic interests favor Progressive policies but their long-term economic interests of the middle class the working class and the institutional class and also the independent professional classes in the as well all get hurt due to the cost of this through their longer term

higher taxation or Inflation outweigh in the long run the the shortterm gains from these policies so let’s just say these the 70% of the PO population benefits from these policies in the short term but I’d say it’s about 7 70% who hurt are hurt from these in the

long run except they’re the underclass with the ivy Elite Class successful business owners the independent professional class and the counter Elite as the other losers but overall it’s about the same percentage of the population who’s going to lose from these policies in the long

run and when it comes to fiscal conservative policies it’s the reverse in the short term the beneficiaries of fiscal conservative policies tend the shortterm tend to be the losers of fiscal conservative polic policies in the long term and so and vice versa so that’s kind of it’s

an intertemporal problem I think with a lot of this and if you’re confused or if you’d like to talk about further or you disagree feel free to leave your thoughts in the comments and please like subscribe and share the momentum on the this old money Series has really helped explode this

channel I look forward to delivering you more of this type of content and the reception continues to be as good as it has been