At one time or another, you probably have heard the term “born on 3rd base.” Although there are several stories about its origin the term is widely attributed to football coach Barry Switzer who once said at a news conference, “some people are born on third base and go through life thinking they hit a triple.”
Today, we will take on a group a bit further down the wealth scale. I dub them “born on 2nd base” while a long-time reader of MR calls them “the top 19%” who are ruining the chances of many Americans for upward mobility. My frequent MR reader said, “most of us despise the 1% but I really resent the next rung usually referred to as the upper middle class". I responded so you mean people born on 2nd base instead of third? He laughed and said I had captured it well. I found it interesting in that the Federal Reserve has recently released a report stating that as of December 2022, some 18% of American households had a net worth more than one million dollars. Given the rise in both equity and real estate values, we are probably up to 20-21% of total households hitting the now relatively meaningless statistic.
Is this reader alone in his anger? Nope. Over the last 18 months, I have heard from several readers who vented about how the upper middle class is practically building a moat around themselves. Here are some of their gripes:
1) Legacy college entrance—for years, elite colleges and universities tended to favor children of alumni. The time-honored reason was that the family would continue to be generous givers to the institution and the next generation would do that as well. Also, the noveau-riche could land a spot for a son or daughter with a seven-figure contribution. Some of this has gone by the boards as the most prominent institutions have huge endowments and face strong media scrutiny. Smaller colleges continue the practice as they are struggling for cash and are under the media radar that the Ivies and other leading schools face.
2) Upper middle-class parents send their children to SAT prep courses. Others take them on frequent foreign trips that widen their perspective and sharpen their foreign language skills. Most families cannot afford this.
3) Internships—This is generating some noise. An internship at the right firm is a terrific resume builder for a college student. So, Mom or Dad asks a friend to take their child on for a summer and often they will bring the friend’s child into one of their companies. This type of closed loop really occurs. A bigger problem is the coveted internships in NYC or in Washington, DC. Well-heeled parents can put their student up in expensive and safe digs for the summer. People of more modest backgrounds cannot do this. Many internships used to be non-paid. That has changed and some allow for college credit to be awarded for certain jobs. This tends to exclude all but the millionaire plus group if the internship is out of town.
4) Living in neighborhoods or counties with strong public schools
This one does not get a lot of media notice but, over the years, I have certainly heard many discuss it. Once, years ago, at a luncheon, a media rep said that he was moving to a suburban area with great schools. A colleague berated him saying why not stay in your current jurisdiction and fight for better schools. The rep said “why should I use my daughter as an experiment? It may take 10-15 years to turn the current school system around. If we move, we will pay higher property taxes, have a higher mortgage payment, and I will have a longer commute. But, I am giving my child a chance to get in to a top rated school. I make no apologies for that. I love my daughter!” Tied into this is that affluent neighborhoods fight against high density housing entering their domain. Part of may be to maintain strong property values but some could be racist tendencies.
5) Tax policies that favor the affluent—few people except some extreme progressives bring this up. Mortgage interest in the US is largely tax deductible. I have received several e-mails from readers saying that it is unfair to give homeowners such a tax break. Gently, I counter that it would be damn near impossible to strip that rule away with nearly two thirds of American households benefiting from it. Yes, it is not allowed in Canada but our friends to the north have never had this loophole.
Do children of the affluent but not super rich have an advantage over the middle and working class? Absolutely! Yet, they are often the ones reading to their children every night, driving them to soccer games or music class and being deeply involved in their youngsters lives. They are only wanting what is best for their children. This is an integral part of the American dream of having your children living better than you.
Is it unfair? Yes, those born on 2nd base do have advantages that most do not. I simply do not see it as a conspiracy against the underprivileged as some of my angry readers do.
If you have any ideas on how to level this playing field, please drop me an e-mail.
You may contact Don Cole directly at doncolemedia@gmail.com or leave a message on the blog.
