The media elite and political elite in this country are disconnected in many ways from the average American citizen. One illustration of this occurred as the final vote was taken in December on the tax reform bill.
Many of these elites were scoffing at the fact that the tax cut to middle class Americans might only be $1000 per year. Moreover, they mocked that it amounted to only $18-19 per week. They don’t understand how an additional $1000 per year can make a profound difference in many families.
Before we get to the impact $1000 could make, let’s turn the issue around. Imagine a bill before Congress that would reduce the income to families by a $1000 a year. Would those same people say, it is only a $1000 reduction? Of course they would not.
Would $1000 a year make a difference to many Americans? In a previous commentary, I talked about the survey done by the Federal Reserve. They found that 47 percent of respondents said they could not pay for a $400 emergency without borrowing money or selling one of their possessions. Would an additional $1000 make a difference to those people? I think we know the answer.
By the way, the percentage goes from 47 percent to 59 percent when asked if they have resources to cover a $1000 emergency. Nearly six in ten Americans do not have $1000 laying around for an emergency expenditure. Having an additional $1000 would make a difference to them.
These statistics illustrate the striking difference between many of the elites in this country and average Americans. The elite class in this country could probably spend $1000 at a restaurant or a weekend trip and not even feel the financial effect. The tax cut for average Americans might make a profound difference that the elites simply don’t seem to understand.