Me, Miners and Goldman Sachs

One of my clients mentioned today that a cousin of his was one of the 25 miners died in the mining accident in West Virginia. He was upset. He was understandably sad and angry.

The implied cause of the accident was that the mining company was a bit sloppy, had been sited for several safety violations, and was basically trying to save money by cutting corners. I also heard on the radio that mining companies try to save millions of dollars in medical expenses by fighting disability claims for black-lung disease and other chronic, degenerative diseases that minors often develop. This seems like a bad thing. Miner's die while other make money.

But who is it making money. Is it he mean, exploitive mining companies, that pay off judges, run the state legislature and extract profits for their shareholders. Yes, it's them. But it is also so many energy companies that use cheap coal to make electricity. Then it is so many other companies who use the cheaper energy in large quantities so they can make products people can afford. It is big-box stores that keep the lights on all the time and sell things cheaper because of cheaper energy. These companies also keep many workers employed, this feeds families and helps the whole economy.

These companies, as well as the energy companies and the mining companies are traded on the stock exchanges. When these companies make a profit, which they can do more easily by cutting costs, such as how much they pay miners, and how much they pay in disability payments, and how much they pay for energy, the shares go up.

Who makes money on the shares? Anyone who owns stock, such as pension funds, mutual funds, and any one who directly or indirectly is saving for retirement. When stocks go up many people have more money. They can spend more money, they can retire more easily and more comfortably (me). Some people can get very rich trading stocks, or derivatives based on stocks (Goldman-Sachs).

So next time you meet a woman who has taught for thirty-five years in Nebraska, and now she is retired and growing tomatoes, tell her to thank the miners who are sick and dying in West Virginia.

People love America because it gives them the opportunity to get very rich. If you are going to live in a society with very rich people, you are going to have to live with many more people who are very poor. How else are people going to get very rich, or even a little rich. It is very difficult to get that way just by going to work every day.

America has been this way since we allowed slavery in the Constitution.

Don't Tread on Me (but you can tread on my miner)