Why New Money Supports the Right #Finance

there’s a lot to be said for being nvo and the Reagan mean to say it all Gore Vidal in a previous CashNews.co I explained why old money and the establishment Elites often support left-wing politics even though a lot of economic leftwing policies on the surface seem to be

counterproductive to the goals of the wealthy however old money isn’t all the wealthy and in fact in the United States of America old money a relatively small minority of the wealthy and whereas new money tends to be the bulk of the wealth in America as well as the bulk of political donations

in America for this CashNews.co I’m going to be focusing primarily on the power relationships between new money and old money in the United States because it’s the only country where new money is balanced or has an advantage over old money whereas most of the world particularly old

world the only wealthy are old money or those who are politically connected to old money and so as a result there really isn’t a competition and that’s also why these countries tend to have more rigid class structures and higher levels of progressive taxation and stronger social safety

Nets because they value social stability over class mobility and you see that with the results of those places economically and also the fact that these regions have more adversarial relationships between each other’s social classes than they do in North America without further Ado

let’s get to the main point of this CashNews.co which is why does new money support the right while the ideological differences between the political left and the political right in the United States have changed frequently throughout the country’s history the ideology of new money

really has not changed very much their General ideology what we would put today as Classical liberalism which is the idea that you have equality under the law free Markets free competition

and countries generally working in the best interests of its native born citizens no matter what their social classes whether good or bad of birth that and also having laws or a society that does not reward any sort of inherited titles that is Classical liberalism and the consequence of Classical

liberalism is social and economic volatility like if you allow free competition that means the cream does rise the top but also that means that people who were previously on the top of the pyramid are risk of being disrupted or outcompeted what Classical liberalism has shifted across the political

Spectrum if you go back to the days of the French Revolution the classical liberals were part of the Third Estate and they were on the more radical side at the beginning and were opposed to the French monarchy and whereas in the modern day Classical liberalism is more right-wing because it’s

fighting against other ideologies which have taken over over the more left side of the spectrum the left in general has embraced either economic or social redistributionist policies and or certain protections to keep the existing status hierarchy intact which newer money tends to oppose because

they want the opportunity permitted from increased Mobility whether it’s social Mobility the upside or social Mobility to the downside so then why does new money support a free-for-all why do they want to have such a dynamic level of social volatility which can result in many fortunes being

easily gained and easily lost when we have to look at why new money tends to support Classical liberalism you have to look at what are the goals of new money the main goal of new money is they want to maximize their opportunity to move up the social hierarchy whether that’s in terms of

gaining more financial wealth or being able to leverage their financial wealth to gain social status and social volatility permits that if you have a more Dynamic economy which allows for more volatile booms and busts that allows new money to move up faster and provides less hurdles such as

progressive taxation to be able to directly compete with the old money whether it’s directly in terms of their business interests or socially maybe they want to be able to afford to live in the same neighborhoods as old money or be in the same prestigious clubs if you have a more classically

liberal economy a more free market economy with less taxation you don’t get the government basically being a speed bump that slows down if not completely impedes the progress of emerging competition and so the right in America generally tends to promote Less business regulation lower

Income Taxes and more competition and so as a result new money tends toci side with those who will allow more mobility and economic volatility on the downside also disproportionately benefits new money because new money has current active businesses that are

generating Cash Flows and likely growing at a faster Pace than the Investments that are held by old money which are in more established companies or in more Diversified Portfolios so if the bold; color: #1a73e8; text-decoration: none;">Markets go down or Real Estate in a certain area goes down the new money often has more dry powerder to take advantage of the dip than old money does and so old M new money also benefits from volatility from that perspective as well

the second goal of new money is to keep acquired wealth so why does new money tend to care more about keeping acquired wealth than old money does first the the wealth for new money was acquired within their lifetime or they had a living family member who acquired the wealth so it’s not really

taken for granted or there just is just a given or endowed by birth like it is for older money it’s us either the primary bread winner for a lack of better word who acquired the fortune is either the living person right now that person’s parents or that person’s grandparents So

within living memory new money knows what it’s like to be poor or their family to be poor and so as a result they feel less secure about keeping their money and they want to be able to continue to accumulate so they can move up into the ranks of the establishment Elite or directly compete

against them also with newer money they tend they’ve never really experienced a lot of the luxuries that people who grew up with old money so they may have higher spending habits that at least more visible spending habits than older money does and that might also be partially what’s

driving it a lot of it psychological too just the fear that look if my business goes south I can lose all of this money and I don’t want to go back there fear of poverty whereas old money paradoxically feels more secure even if they may have less skills to acquire the wealth or not as

talented as the new money on paper and pra they feel more confident because they know that money’s been there for a long time and it’s not just going to go away due to a few bad decisions so newer money tends to prioritize keeping acquired wealth and allowing it to accumulate faster

which is generally needs their opposition of progressive taxation the third thing is recognition of Merit new money since they are the people who have acquired these fortunes tend to have had to earn them especially in the post industrial Ral world so as a result they appreciate people having to

rise the top through hard work and not just through being born into it or soci or just predesignated social class from the government and so as a result they want people to sink or swim on their own merits and so this General psychological bias tends to promote a more economically right-wing world

view uh the fourth and final reason for new money which is part economic and part psychological is getting some sort of revenge against the establishment Elites and or just outright rebelliousness a lot of the people in the counter Elite used to be old money or connected in the establishment class

in some way but were kicked out due to personal reasons or just simply not being accepted so say for example you’re a successful entrepreneur you originally wanted to move up the establishment path but you got rejected from the Ivy League schools and because of that a lot of the more

established white shoot firms would not hire you and so now you kind of have a chip on your shoulder and you don’t want to see people basically automatically get slotted certain privileges in certain social classes because they went to a certain school or they were able to work at a more

established company and you want to see these people kind of metaphorically put in their place and the way to do that is to oppose them and right now their politics tends to side with the more Center left side of things so these people maybe as contrarians by Nature will take the opposite stance to

so they can move up against them in the intra Elite competition that dominates the American class hierarchy structure also there might be some other Pacific issue that somebody who previously was accepted by The Establishment got kicked out because they dis agreed with them on a certain thing and

so they’re going to oppose them because they don’t really like the path they don’t fit in the club as I mentioned in the old money CashNews.cos a lot of the establishment Le ladder is basically being able to play along to get along and some people just don’t have that

personality it’s the same kind of disposition that motivates some people to be employees verus starting their own business and people who don’t like to don’t like to play along to get along tend to be more on the economically free market right side of things and so as a result

they all tend to have more support for right-wing politics and new money and usually to make new money you’ve got to do something that’s different or out of the box than what everybody else has been doing in some way shape or form and it’s more likely to attract these natural

contrarians so does that explain why all new money is to the right no but it explains a lot of it and some of the counters I’m going to get is what about social issues weren these same people who are more open or who are more counterintuitive aren’t they going to necessarily be more

socially liberal well I don’t know if that theory holds water but even if it did at the levels of wealth it really requires to be new money the power of the state to take away your wealth through taxation or impede the progress of your business through regulation has a much greater effect on

you than minor changes in Social issues so you’re more likely to vote based on your pocketbook interests than your moral SL luxury belief type because you have a lot more at stake on the economic front and that’s why you see a lot of socially liberal people otherwise tend to be some of

the biggest donors to the Republican Party example of this would be Larry Ellison and to a lesser extent Elon Musk the other likely counter question I’m going to get is what about tech billionaires a lot of tech billionaires tend to support left-wing causes and put a lot of money where their

mouth is and Tech billionaires tend to also be new money however actually some of them actually are from older money than you would think if you want to go look up the parents and grandparents and some of the tech billionaires out there however assuming they’re even all self-made Tech

billionaires kind of often are from a different perspective because a lot of them become wealthy before the business becomes Profitable and that is due to just the way the Venture Capital industry works you get the big Valuation while your company

is still growing and before it really becomes Profitable whereas in just about any other part of the economy out other than May biotech the Net Worth does not come before you actually earn hard Profits and having to build a business through self-

financing it through internal Cash Flow or through borrowing money is a lot different than having getting a generous Valuation in the Venture Capital Market the one the person who made their money through that way is more likely have old money

sympathies because they got rich before the product delivered and there’s actually a lot of examples of people who’ve gotten rich without their product ever delivering or without their company ever turning a gap Profit so there’s a different psychological

component there and then there’s also the regional bias like as I mentioned in the old money CashNews.co there are certain regions where you simply just cannot have right-wing political views and be socially acceptable such as San Francisco beay and for new money there’s actually plenty

of places where you if you’re not right-wing people are going to think something is wrong with you such as the Deep South some of the wealthier areas of the Dallas Fort Worth Metroplex Orange County California and a lot of other more suburban and exurban places that are popular money Florida

increasingly too because I think new money has really been the consistent ideology which is this more classically liberal ideology but where the classical liberals have fit on the political Spectrum has changed they were on what would be the left in the 18th century and early 19th century in the

center in the late 19th century to the mid 20th century and to the right basically since the late 20th century examples of really how the right has evolved to become more new money focused is really the last 50 years where you had first the Reagan Revolution which really was the new money in in the

South and the West taking out the more old money Rockefeller Republicans and turning the GOP into the party that kind of represented their interests in the 80s and the90s and to a similar degree you had Donald Trump in 2016 where he represented new money interests Against The Establishment Elite as

well and basically kicked out the Republicans who started decide more with The Establishment Elite to reform the party and more populist and the GOP being kind of the vessel for new money has really been its history basically since the 1970s and that is kind of just an example of how new money has

its influence in politics and because the GOP has kind of become The Unofficial vessel of new money interests why new money tends to support the political right and as with the one iidea about old money in the left I would love to have your questions or comments and disagreements the level of

discourse has been fantastic in the previous CashNews.co and I hope it can continue here and I have more old money content continuing please like subscribe and share so we can have this conversation continue to evolve