• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Chris Leithner

  • About Chris
  • Archive
  • Links
  • Books – Australia
  • Books – Canada
  • Books – USA
  • Show Search
Hide Search

Leithner Letter No. 233-236

Chris · March 26, 2019 · Leave a Comment

26 March – 26 June 2019

“Here’s the truth, Brothers and sisters, there’s plenty of money in the world. There’s plenty of money in this city. It’s just in the wrong hands.” [So said New York City’s Mayor, Bill de Blasio, in his State of the City address on 10 January 2019]. American politics is in part an eternal battle between those who prize freedom and those who demand equality, between the forces of income growth and those of income redistribution, and in 2019 the redistributors are on the march. For the purest distillation of the socialist impulse, look no further than Mayor de Blasio’s statement of raw political purpose that we quote above from his annual address last week.

The mayor says New York’s—and America’s—money is “in the wrong hands,” and his duty is to put it in the right ones. The right hands are presumably his own, by which he can pass that money out to those he and the City Council believe to be more deserving. But when he says the “wrong hands,” who does he mean exactly? Who are these undeserving malefactors? Presuma-bly he means the wealthy, so let’s mention a few of the New Yorkers he might have in mind … Perhaps the mayor is thinking of Ken Langone, the Home Depot founder, who has donated hun-dreds of millions of dollars to the New York University Medical Center that treats patients of all incomes and social strata. Mr. Langone’s most recent $100 million gift, made last year, will go to provide cost-free tuition for every NYU medical student. Wrong hands?

Here’s the real truth, brothers and sisters. Without the “wrong hands” that Mr. de Blasio des-pises, there would be no wealth or income to redistribute. Without the fruits of capitalist inven-tion and business success, there would be no philanthropists to preserve the parks, to rebuild crumbling public spaces, to donate to the museums that give the non-rich a glimpse of great art and history, or to provide an alternative to failing public schools that cheat poor children of opportunity.

As for Mr. de Blasio’s right hands, there are those failing schools. And don’t forget the New York City Housing Authority, which last year had to sign a consent decree with the federal government for lying about its failure to provide safe and sanitary conditions. “Somewhat rem-iniscent of the biblical plagues of Egypt, these conditions include toxic lead paint, asthma-inducing mold, lack of heat, frequent elevator outages, and vermin infestations,” federal Judge William Pauley III wrote last year, adding that the authority “whitewashed these deficiencies for years.” Perhaps those are the hands Mr. de Blasio should do something about.

“Money ‘in the Wrong Hands’”
The Wall Street Journal (14 January 2019)

Which Australian Households’ Finances Are Most Vulnerable?

According to the bullish mainstream, Australian households’ finances have long been strong and in the future will be able to withstand any conceivable headwind. The assessment of Shane Oliver, the chief economist at AMP Capital, is typical: “the trigger for major problems remains hard to see.” Like lawyers who compile prospectuses, he dutifully – and reasonably thoroughly – lists the risks from households’ low (and falling) savings and high (and rising) debt. And like stockbrokers who tout IPOs, he heavily discounts these risks. Oliver concedes that “there are several threats.” Individually, he reckons, they’re unlikely – and collectively, he implies, they’re miniscule …

To read the full Newsletter click here.

Filed Under: Uncategorized

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Subscribe to the Leithner Letter

* indicates required

About this website

About this website

This site hosts newsletters, books, etc., written initially for shareholders of Leithner & Company Pty Ltd and subsequently for anybody who wants to read them. … [Read More] about About this website

Recent Posts

  • Investors, beware: It’s THAT time of year again! January 10, 2021
  • Speculators are playing with fire; investors, don’t get burnt! December 21, 2020
  • Will Joe Biden be good for investors? Why I disagree with Geoff Wilson December 5, 2020
  • Experts can’t predict yet investors must plan: What, then, to do? November 23, 2020
  • Does high IQ make a better investor? November 11, 2020

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • June 2020
  • March 2020
  • November 2019
  • July 2019
  • March 2019
  • November 2018
  • August 2018
  • April 2018
  • September 2017
  • July 2017
  • March 2017
  • November 2016
  • July 2016
  • March 2016
  • November 2015
  • July 2015
  • March 2015
  • October 2014
  • June 2014
  • February 2014
  • October 2013
  • July 2013
  • February 2013
  • November 2012
  • July 2012
  • April 2012
  • December 2011
  • August 2011
  • April 2011
  • November 2010
  • July 2010
  • April 2010
  • December 2009
  • September 2009
  • June 2009
  • March 2009
  • December 2008

Copyright © 2021 · Chris Leithner