The Rich Poor Divide

This rich/poor wealth gap is all the conversational rage. However, tonight I started thinking about two basic issues where “wealth” can have distinct advantages. These issues seem to be completely ignored by the people pumping class warfare and by the media covering the class warfare:

  • Compounding: Once you have made a certain amount of money, and especially if it is big money, compounding can play a huge role in accelerating the growth of money.
  • Access to top investing professionals: Yes, if you have a billion dollars, you get special treatment.

Does that make the current richest among us necessarily evil? No, of course not because the short answer is that each blueprint for wealth is unique. And today’s wealthiest list is filled with first generation money. We have a winner take all society, but who said life was fair? All we can do is buckle the chin strap and get in the game. Occupations, marches, protests, etc. all just delay any chance you might have at financial success.

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13 thoughts on “The Rich Poor Divide

  1. I think that you are missing the point completely. Most people don’t have a problem with talent, hard work and smart investing. What they have a problem with is the buying of politicians to rig the game in their favor and the committing of fraud.

  2. The people coming of age today have been taught all throughout their childhood that life IS fair and that there are no winners or losers. That is why every child gets a trophy just for showing up. That is why there are movements to do away with all grades in school except pass/fail. That is why there some do not want to keep score – play the game just for enjoyment. That is why this country is deteriorating with everyone demanding their fair share without having to work for it. We have brought it upon ourselves and now we are paying the price.

  3. Bill, let me play devil’s advocate. I am one guy who wants to write a check to support a politician. Should I be stopped? I am surprised more people don’t take these desires to a practical enforcement level. Additionally, if you stop me from writing the check…on what grounds?

  4. Everybody agrees that in sports you can only have a true competition when the rules apply for everybody, in other words when the game is fair. But in the markets suddenly people demanding fairness are stupid idiots who don´t work hard enough.

  5. If by fairness you mean that everybody play by the same rules and the winners end up better off than the losers, I agree. On the other hand, if by fairness you mean that everybody end up with the same amount of riches and toys whether or not they work at it, then I disagree. Just because you play by the rules and work hard does not guarantee success and the opposite. But instead of complaining about the wealth disparity, many of the complainers would do better to try to work harder or if not harder then at least smarter and understand that there are winners, losers, and others.

  6. Rick, two things:

    1. Can anyone start a business online and do very well?
    2. Can anyone open an account and trade to do well?

    The answer is yes. The opportunity is there for everyone.

    All the other stuff? Why is it relevant? Someone will always game the system–who cares. Think that will stop ever? Of course not.

    The keys are my points 1 and 2.

    Right?

  7. Michael

    I agree with you that the opportunity is there for everyone. That is in total agreement with everything I have stated. I don’t care that someone will always game the system. And in fact those gamers may or may not do better than me. That is not my point. My point is that it seems that the majority of those who complain about the inequalities (and I am not one of them), whether it be in the wealth divide or promotions at work or anything else, are those who have not taken advantage of the opportunities that exist. They have not worked harder or smarter to exploit those opportunities. They want everything handed to them. And they have been taught that philosophy through those practices I have previously stated and others like them.

    It would seem that you and I are in complete agreement on this.

  8. As you were saying money breeds more money.People with money over and above their survival needs can spend it on making a politician dependent on them for their livelihood. Is this democracy? Isn’t democracy one person one vote.Economics, politics and social tranquility are all intertwined. If people feel the game is rigged they lash out, right, wrong you end up with revolution….that’s real world. I think that campaign contribution and lobbying should be limited it amounts to corruption. I haven’t thought through the exact mechanics… constitutional amendment??

  9. I wonder if any other cultures have as much of a hang up about making money or wealth as western Europe and north america. No wonder so many people find it hard to get ahead today. With the constant mantra from society that wealth is evil. It,s OK to make money just don’t make to much, and if you do, be sure to share. John Adams quote “Democracy never last long. It soon wastes, exhaust and murders itself. There was never a democracy that did not commit suicide”. This country is suppose to be a limited Republic. They champion the rights of the individual over the mad mob, and those rights include pauper or unpopular rich man or woman.

  10. Re read the part where Dagny Taggart and Rearden in Rand’s novel give a press conference before the launch of the John Galt Line.

    What the f… happenned to this world, where making money and being successful is deemed evil?

  11. I was thinking about my last reply and have to set the record straight. As far as this discussion, I do not care that someone will always game the system. But outside of this discussion, it does bother me that people find it necessary to be gamers and not play by the rules especially when their actions impact me. Of course, if enough people decide to play the game by a different set of rules, then that game has changed and all bets are off.

    Making money and being successful are only deemed evil by those people who feel that everything should be handed to them whether or not they deserve it and that there should be no winners or losers.

  12. “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices….”

    “The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined,…… It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public…”
    Adam Smith-The Wealth of Nations

  13. The problem people are having is with America!
    A society run by profit maximization, greed, selfishness and on the brink of bankruptcy.

    Thank good for socialism!

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