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Rich People Deserve Money Because Robert Downey Jr.
By
Christopher Robbins
Published Feb 16, 2014
Modified Feb 16, 2014
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By
Christopher Robbins
Published Feb 16, 2014
Modified Feb 16, 2014
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We've seen the defense of our country's growing problem of economic inequality take the form of technocratic acrobatics and the hot breath from your drunk uncle at Thanksgiving—now meet The Robert Downey Jr. Method.
As written in today's Times by Gregory Mankiw, a Harvard professor and former economic advisor to George W. Bush and Mitt Romney, The Robert Downey Jr. Method is simple: Robert Downey Jr. works really hard at acting and makes a lot of money, so why shouldn't the members and stewards of corporate America? Check. Mate.
Wait, you need more than that?
In 2012, the actor Robert Downey Jr., played the role of Tony Stark, a.k.a. Iron Man, in “The Avengers.” For his work in that single film, Mr. Downey was paid an astounding $50 million…If you earn more than about $10 million, you are in the top 1 percent of the top 1 percent. Mr. Downey makes it easily. Yet, somehow, when I talk to people about it, most are not appalled by his income. Why?
While The Avengers was certainly an atrocity [Ed. Note: while Iron Man 2 may have been a terrible mess, The Avengers was above-average comic book cinema that stands as one of the best in the genre], it has yet to annihilate the global economy. The Avengers grossed $1.5 billion. The Great Recession cost us at least $14 trillion [PDF], maybe more.
As much as Robert Downey Jr. should be summoned to the Shitty Film Hague and face innumerable counts of Aggravated Action Hero, he also has little to do with "one of the more egregious failures of the criminal justice system in many years."
Consider chief executives. Without doubt, they are paid handsomely, and their pay has grown over time relative to that of the average worker. In 2012, the median pay of C.E.O.’s for companies in the Standard & Poor’s 500-stock index was nearly $10 million. Did they deserve it?
The value of making the right decisions is tremendous. Just consider the role of Steve Jobs in the rise of Apple and its path-breaking products.
Yes, consider Steve Jobs, the chief executive who made exploitative labor practices and routine tax-dodging crucial to his company's bottom line. Consider how valuable those shrewd, morally repugnant, "right decisions" are.
A similar case is the finance industry, where many hefty compensation packages can be found. There is no doubt that this sector plays a crucial economic role. Those who work in banking, venture capital and other financial firms are in charge of allocating the economy’s investment resources…It makes sense that a nation would allocate many of its most talented and thus highly compensated individuals to the task.
According to an article in the Harvard Business Review, the financial sector accounts for roughly 8% of the GDP but 32% of all corporate profits. "These excess profits are extracted from the real economy — consumers and businesses — and constitute a drag on non-financial growth," the authors state.
Mankiw does not care that the top 1% of earners saw their incomes rise by 30% in recent years, while middle class families struggle to maintain the same standard of living they had in 1989. Mankiw does not care that the top 10% of earners have the greatest share of income since 1917. Mankiw does not care because rich people pay more of a percentage of their income in taxes than the middle class.
(Except if you, like Mankiw's former boss, earn most of your income through capital gains. Or you keep a chunk of your net worth in complex, offshore arrangements, like Mankiw's former boss.)
In conclusion: Robert Downey Jr.
So, by delivering extraordinary performances in hit films, top stars may do more than entertain millions of moviegoers and make themselves rich in the process. They may also contribute many millions in federal taxes, and other millions in state taxes. And those millions help fund schools, police departments and national defense for the rest of us.
Unlike the superheroes of “The Avengers,” the richest 1 percent aren’t motivated by an altruistic desire to advance the public good. But, in most cases, that is precisely their effect.
Rich People: Heroes, Or Super Heroes?
Tagged
income inequality
people actually believe this
rich people
robert downey jr.
the avengers
Christopher Robbins
Christopher Robbins is a New York City reporter covering transportation, affordable housing, local politics, and criminal justice. His work has also appeared in New York Magazine, The Village Voice and The New York Times. Chris is a graduate of Patrick Henry High School in Roanoke, Virginia, and enjoys biking to Fort Tilden in the summertime.
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