The wealth gap

There is a lot of talk about the “wealth gap” today, and I wanted to give my views on it.

First, it makes sense that there is one (in fact there MUST be one), and it should be growing.  Let me unpack this.

How to make money is known, and it can be known by all who wish to know it.  There are no secrets.  Any idea that opportunities or knowledge are being kept from anyone is a myth today.

Making money is not easy and requires self-discipline, hard work, and taking risks.  Not everyone is willing to do these things simply because it’s easier today to chase short-term pleasure and entertainment.  If you had a hidden camera and watched what people do each day, you’d see the striking difference between how the top and the bottom spend their hours, and how they spent their hours years earlier to get them where they are.

The link between education and wealth is loose.  And education is available to anyone without going to college.  The idea that you have to have money is the first place to make money is a myth.  I am living proof and I am far from alone.  (And my son is light years ahead of me in science and math with no college.)

When we talk about a “gap”, we are talking about comparing the bottom to the top.  As far as the bottom, they have zero wealth.  They live hand to mouth, paycheck to paycheck.  There are people who do nothing to improve their economic condition and millions who are downright destructive to themselves and their ability to make a contribution to others.  Zero will always be zero. The bottom 100 years ago, or 50 years ago or 20 years ago – was zero.

Now let’s talk about the top.  The people that get to the “top” are the advanced leaders showing us we can do it too.  We can see how they did it – no secrets.  There will always be the first person to make one billion, five billion, 10 billion – and there will be someone who will push the number ever higher.  And I am glad they get better all the time.  It creates lots of opportunities for me and everyone at the bottom – if they wanted to take advantage of it.

It used to be that a “million” meant you were rich – but now everyone who works in America will make a million dollars in their lifetime.  Some in a career, some in 20 years, and some in ten years, etc.  Even people on public assistance will collect a million in cash and benefits over their lifetimes without working!

I do not want to live in a world where everyone is equal when it comes to income and wealth.  This means that nobody can get ahead because by taxation or theft or through many policies.  I do not work hard to get ahead of anyone else, I do it to see how far I can go and how good I can get.  If I knew I couldn’t do better, I would not try.  If the guy at the bottom knows he will do as well as everyone else, he won’t try either, and nobody lives well or is fulfilled in a world where nobody is trying.

Money makes money – that can be true.  So the wealthy can eventually figure out how to live off their wealth without working.  But they have to earn it first.  And making money and managing it is a great responsibility.  In making money from money, they have to risk it and provide the capital and liquidity for new companies and new investments, and new jobs for others.  Sometimes they lose.

So, the rich get richer – that’s good by me.  Zero is always zero and will always be – I understand why.

So there’s a wealth gap – and it’s getting bigger.  I understand that and that’s the world I want to live in – and you should too.