Since the weekend is running slow. I thought I’d return to a favorite topic: Atlas Shrugged. An important idea discussed by this book is, “What would happen to the economy, government, and/or society if the producers, inventors, and contributors one day stopped and disappeared?” We’re talking about the people who really move the world.
The first to “disappear” was a man named John Galt. He decides to revolt as he and others realize (1) they no longer have claim to the products they produce or the profit from their efforts, (2) that by continuing to produce for the “others” they become enablers, and (3) the only solution is to stop working and giving their creations to the rest of the world.
At first, my intention was to write about how I think we are moving in this direction. I mean, in 2010 less than 50% of citizens will pay even $1 of income tax. I do not expect this trend to reverse since there will always be politicians willing to sell the rights to my earnings for a following. Sure, there is resistance on the other side. We’ve all read in the media about the recent populist ire and rage, but it’s different this time. In the past, the populist movement was the poor rising up against the elite… this time it’s the middle class rising up against the poor who claim entitlement to the middle-class wealth. A fair question is whether the government is the pawn or the instigator in this redistribution.
But I think there is a more interesting question to ask… in our day, who do you think are the producers, creators, inventors, organizers? Who, if they chose to shrug and stop would bring the world to their knees? Is it a list of people, an organization, a movement?
I’ll confess, my immediate thoughts turned to people like Steve Jobs, T. Boone Pickens, Warren Buffett and other arguable “idea leaders.” But what about the “oxy-clean guy”? How many small businesses has he helped with his infomercial prowess? Recently, I have helped out with a start-up company whose engineering co-founder is a genius at designing medical devices to solve surgical problems.
That last example eclipses my definition of an inventor, organizer, producer. This guy and his team have the technical expertise to “invent” something, but also the business understanding to make it available to the world.
What do you think?
I also think it would also be interesting to discuss if we think this would ever happen. It’s one thing to say that I hate seeing “withholding” on each paycheck because it means the government doesn’t trust me enough to pay my taxes if they give it to me first. It’s another thing to say that I will stop trying to climb the economic ladder because I feel I carry an unfair portion of the economic burden. Do we have a “disappearing point?”
Last 3 posts by Eric B.
- Nassim Taleb on the Economy - June 25th, 2010
- Full Circle - May 3rd, 2010
- The Dark Side :) - April 5th, 2010


The 50% think has been a tipping point in other countries in the past. The logic of it is clear and not in dispute, but politicians will do whatever they have to in order to be elected. Just the way it is. Is not that the people who are in the lower 50% group pay no taxes, they do pay sales taxes, cigrette taxes, gasoline taxes and numerous other taxes. The point is however when it comes to raising the income tax they will never have a problem with that because they feel it doesn’t hurt them and may actually, as they see it, benefit them. Herein lies the problem. If high income taxes keep rising they those who must pay them will find less and less incenive to make more money, since the government will take it away. Capitalism will fall by the wayside and what has made this country the great economic engine it was will vanish and the position of the U S on the world stage will decline. That will leave us open to many dangers.
Just a note, T. Boone Pickens made a lot of his money threatening to take over and sell off oil and gas companies. The threatened company would pay him millions of dollars (known as green mail) to leave them alone.
A great example of this is the pharmacuetical companies and the healthcare industry in general. They put billions into R&D to hopefully get one drug approved out of numerous failures and allow them to get 17 years of profit on that drug. Then you have people suggesting we allow prescription purchases in Canada, socialized medicine with artificial pricing etc. At some point, the cost/benefit doesn’t make sense and our drug companies will stop making the advancements we demand for free.