Wealth inequality in America is a major issue for those who do not have wealth. It is reported that 99 percent of American wealth is held by 1 percent of the American population. This wealth is generated through inheritance and capitalism. When someone inherits massive wealth, he or she has a variety of investment and capitalist opportunities that would not be available to someone like me. The more wealth you have the more wealth you can generate. True capitalist sell things by taking their wealth, buying equipment, materials and inventory, creating something, adding a markup price and begin distributing. Is it the fault of the 1 percent that wealth inequality exists in America?
Let’s examine how capitalists make and sell goods and services. A capitalist who makes goods to sell would need people: A purchaser to buy materials, workers to build items and a sales person. Capitalists who provide services such as financing and insurance do not have inventory costs only administrative, clerical and sales. It’s a cash cow with little overhead. The objective of capitalism is to make a profit with the least amount of expense; so out of all the items listed above which item do you think a capitalist would ensure is the least expensive cost? It won’t be equipment, materials or inventory; these items are owned by other capitalists. It is the purchasers, sales people, clerical personnel and the workers better known as our 99 percent. The link show examples of how much the 1 percent earn in comparison to the other employees of a variety of corporations. My personal favorite is Wal-Mart. Notice the correlation between some CEO’s salaries and their average employee salaries.
Is it the 1 percent fault that wealth inequality exists in America? Partly, only because capitalists take advantage of the under educated that only serve the purpose to work and not think. Our history, dictates that only the 1 percent can be innovative. Fortunately, for us our future is slowly moving away from this chain of thought. The other part has to do with us as individuals and being paralyzed by fear. Here are some ideas of what we can do as individuals to elevate wealth inequality.
KNOW YOUR WORTH AND HAVE SOME FAITH
Part of being included in a viable workforce is that you too can achieve the American Dream; but you can’t do this if you are overworked and underpaid. The 1 percent isn’t doing any of the work you are doing and let’s face it innovation and oversight is only as good as implementation. Get the money you deserve and don’t be afraid to ask for it. Your paycheck should cover a decent quality of life (home, food, education and savings etc.) People have been conditioned that if you can’t do it cheap than someone else will. What people don’t understand is corporate costs to find and retain someone cheaper is extremely high and will hurt their bottom line and the overall corporate infrastructure which is anti-capitalism.
KNOW WHAT TO DO WITH YOUR MONEY
Just because you are not part of the 1 percent does not mean you can’t invest like them. My favorite book is the “Truth About Money” by Ric Edelman. Check out his website http://truthaboutmoneytv.com/ and his book. You will be amazed what your money can do for you.
TAKE CARE OF YOUR NEIGHBOR
The best way to squash out wealth inequality is to share. The 1 percent is the 1 percent because they are not sharing in a way that is conducive to all concerned; they share what they think the 99 percent deserves. The poor are always going to be amongst us and as you change your circumstances I sincerely hope you will help someone else change their circumstances.
Please share how you plan to alleviate wealth inequality in America. Together we can do it!