Wealth Inequality (Read 403 times)


A Saucy Wench

     

    I really wish I was in that 1%...or even the top 10%....I'd like to think I would be more willing than others to give to the bottom 20%, but I can't say that for sure.  Maybe I would believe what it seems they believe...That all of those people are just lazy leaches living off the government dime.

     

    a)...I dont think the call is really to give the money to the bottom 20% no matter how hard the argument is made to seem that way.  How about the middle 20-80%? (living wages perhaps?) and b)  - wow I really rarely get political out here but ...I seem to recall some pretty decent (obscene) golden parachutes to the CEO's of companies that were bailed out by government money.

    I have become Death, the destroyer of electronic gadgets

     

    "When I got too tired to run anymore I just pretended I wasnt tired and kept running anyway" - dd, age 7


    just a simple cat

      I actually worked with women who were receiving Aid to Families with Dependent Children, they were also working full time but met the poverty level that made them eligible in order to feed and clothe their children.  And they worked as hard as you for their money, Klompus, maybe even harder.

       

       

      FSocks


      "Inspirational"

        I saw the video yesterday and it is pretty mind boggling.  No, I don't think its politically motivated and I wish people wouldn't use it for such.  If there has been one thing that has become evident over the past 12 years its that neither political party has the answer.

        "I highly recommend running if you want to do marathons!"  The SL


        day after day sameness

          Tangent -- any one have any insights as to what graphing / video software was used to make the video?

          I've done my best to live the right way; I get up every morning and go to work each day...

            Jeff,

            Great video.  Thank you for sharing it.  It's good to see videos like that, as it's put together and presented in a way that helps us understand more.

             

            Ennay made the analogy of the wealth vs. income within her family.  I think that's an important understanding as you watch a video like that.  Many times (some times), we're given talents and gifts that aren't used properly, and many times we squander our wealth (as little or as much as we have) on things that are not wise.

             

            I got a little curious as I was watching the video, and put together some numbers based on information presented in the video.

             

            The US population is 300 million. (1% = 3 million people).

            The total wealth is $54 trillion

            The top 1% portion of the total wealth is $21.6 trillion (40% of total wealth)

             

            The average wealth within the top 1% would be $7.2 million

            The average wealth of all 300 million is $180,000

            The average wealth of the remaining 297 million is $109,000

             

            A couple of things regarding those numbers.

            1. I'm not surprised that the top 3 million Americans would average $7.2MM in net worth. (MTA: correct and make a capital "A" in America)

            2. I'm not surprised that many people have virtually $0 net worth (have you seen the clothes, restaurant tabs, cars, boats, and toys people have?).  Their 'investments' aren't investments.

             

            "One of the best way to increase your income is to control your expenses".

            That quote gets people very lost, as they mistake their income for their paycheck.  The income is what's left over after expenses and helps build wealth.  (With that being said, I recognize that a higher paycheck makes it easier to have higher income and gain higher wealth).

            2014 Goals:

            #1: Do what I can do. <DOING>

            #2: 365 Hours training

             

              It's well-illustrated, but not news.

               

              The countries that get closest to the putative ideal are those in Scandinavia, but many Americans regard them as dangerously socialist.


              Not dead. Yet.

                My problem with the whole thing is that the system is set up to favor the rich.  It's easy to make money when you have money.

                 

                Take the fact that Warren Buffet pays less in taxes than his secretary through all of the tax loopholes.  Big money hedge fund managers have so much money invested in some of these companies that they can actually intentionally change the price of a stock by buying and selling, and then make more on that change.  The income from even one million dollars invested is conservatively, 60K per year.  That's a hell of a lot more by doing nothing than anyone in poverty is making working their asses off.  Not to say that's bad, but it definitely favors the rich.

                 

                And then what do these 1% do with that money anyway?  They can't spend it all, so most of it is probably sitting in a bank; probably overseas so they don't have to pay taxes.  It will never get spent in their lifetimes and will instead just be passed down for generations, while it could be used to feed hungry people.  To be fair, Bill Gates has donated billions all over the world, but I don't think all the 1% are like that.  And he probably still has more money banked than he could spend in a million years.

                 

                I have no problem with wealth, but extreme wealth like we have is just wasteful.

                How can we know our limits if we don't test them?


                Not dead. Yet.

                  Tangent -- any one have any insights as to what graphing / video software was used to make the video?

                   

                  Most likely Flash, but it could be a motion graphics package like After Effects.

                  How can we know our limits if we don't test them?


                  A Saucy Wench

                     

                     

                    Ennay made the analogy of the wealth vs. income within her family.  I think that's an important understanding as you watch a video like that.  Many times (some times), we're given talents and gifts that aren't used properly, and many times we squander our wealth (as little or as much as we have) on things that are not wise.

                     

                    "One of the best way to increase your income is to control your expenses".

                    That quote gets people very lost, as they mistake their income for their paycheck.  The income is what's left over after expenses and helps build wealth.  (With that being said, I recognize that a higher paycheck makes it easier to have higher income and gain higher wealth).

                     

                    Yes....and/but getting that toehold is something that is difficult.  Relative B - the one with the low income and the relatively high assets is now at the point where 40% of her income is investment income (depending on how you calculate it). Which is a big part of the story with the 1% too.  It grows on itself. 

                    Now most months she uses very very little of the investment income, if any- but it is the difference with unexpected expenses  - this year she had significant unavoidable expense.  Having that toehold is the difference between living within your means and falling off the cliff when life hands you shit. 

                    The unavoidable non budgetary expenses she had this year equaled 70% of her total ANNUAL non-investment pre tax income.  If you get hit with that at the wrong time in your life - even if you live within your means, that can bury you for a long long time.  And it isnt that rare, especially if your income isn't great to begin with.

                    I have become Death, the destroyer of electronic gadgets

                     

                    "When I got too tired to run anymore I just pretended I wasnt tired and kept running anyway" - dd, age 7

                    elodie.kaye


                      Wow, that video was enlightening.  I was considerably more pessimistic than the average, like Ennay, but nowhere near the reality.  Then I read KerCanDo140's numbers and what the heck! -- some people close to me are in the 1%.  I am not so close as to come into any of that wealth personally, but I'm less sure of what the solution should be.

                       

                      One thought is do we know that what we think is ideal, really would be?  I think the U.S. still has better job growth and as resilient an economy as any nation in the developed world.  Until recently it led the world.  If you were to ask prospective immigrants around the globe which country they'd want to enter, the U.S. would probably be near the top of that list.


                      Not dead. Yet.

                        The US population is 300 million. (1% = 3 million people).

                        The total wealth is $54 trillion

                        The top 1% portion of the total wealth is $21.6 trillion (40% of total wealth)

                         

                        The average wealth within the top 1% would be $7.2 million

                        ...

                        1. I'm not surprised that the top 3 million Americans would average $7.2MM in net worth. (MTA: correct and make a capital "A" in America)

                         

                        It makes sense what you did there, but I still think that number is off.  Or perhaps it's me.  I was thinking the wealth for those in the 1% was in the hundreds of millions (if not more)...

                        How can we know our limits if we don't test them?


                        A Saucy Wench

                          Wow, that video was enlightening.  I was considerably more pessimistic than the average, like Ennay, but nowhere near the reality.  Then I read KerCanDo140's numbers and what the heck! -- some people close to me are in the 1%.  I am not so close as to come into any of that wealth personally, but I'm less sure of what the solution should be.

                           

                          hah...and within the 1% the distribution is similar I believe.  the top 1% of the 1% (yes I CAN do the math) hold most of THAT money.

                          I have become Death, the destroyer of electronic gadgets

                           

                          "When I got too tired to run anymore I just pretended I wasnt tired and kept running anyway" - dd, age 7

                            7 million is about ten times what 54 trillion would average for a 80 million households (about 650 K), which I think is a fair number, that can be an achievable number (at least dream about) for most folks willing to study in school, work hard, save etc.  The problem is the 1/10 of that 1 percenters or even lesser percent of folks hold the vast majority of the wealth which is just dumb luck, inherited or ill gotten.

                             

                            MTA or what Ennay said


                            Fat butt on couch

                                They can't spend it all, so most of it is probably sitting in a bank; probably overseas so they don't have to pay taxes.  It will never get spent in their lifetimes and will instead just be passed down for generations, while it could be used to feed hungry people. 

                               

                               

                              Actually it is unlikely that a large percentage of it is sitting in a bank; that money would then lose its value as it would not be keeping up with inflation.  Most of it is likely invested, which gives businesses access to resources to grow and (hopefully) create jobs.  One of the big problems with the Great Recession was that the banks got in trouble, and capital became hard to come by.  Large investors stopped investing in growing businesses.  With no access to capital, job creation more or less ceased.

                               

                              I'm no fan of excessive executive compensation, golden parachutes, and big bonuses of taxpayer money for guys who drove their banks into the ground but the economy and the role various parties play in it is not so simple.

                              "If you want to be a bad a$s, then do what a bad a$s does.  There's your pep talk for today.  Go Run." -- Slo_Hand

                               

                                I saw the video yesterday and it is pretty mind boggling.  No, I don't think its politically motivated and I wish people wouldn't use it for such.  If there has been one thing that has become evident over the past 12 years its that neither political party has the answer.

                                 

                                RIght on point with that statment. :-)

                                 

                                Probably a bit of a tangent, but I know an Enlisted sailor.  He has done near 20 years in the service.  Now remember, enlisted pay is not very much money!    ---  This fellow drove a (very) modest car his first 15 years, and he bought his house with a 15-year loan.  He also lived on about 75 to 80% of his income and saved all of the rest + invested it in several mutual funds.  Every month, for 20 years.

                                 

                                Most people in the service who retire after 20 years have more debt than assets, regardless of paygrade!  Officers make a lot more money, but they merely SPEND alot more money.  A large percentage of people, regardless of paygrade and income, spent 100%, or more, of what they made and saved nothing.

                                 

                                --Meanwhile, this enlisted fellow retired at 20 years with a house fully paid for, a nice car he bought with cash, and over $400,000.00 in mutual funds.    Main point I am trying to make is:  People cannot control the NATIONAL economy, but they can control their PERSONAL economy.  I.E.  "Live on 90% or less of your income, not 100%"  -- Learn to make money work for you, or you will spend your life working for money."   ---     How does this fellow tie into the Video?  I would say because he was able to bridge the gap between his small salary and the wealthier in the nation by saving money and being able to invest in the same stocks they did.  Nowadays?  Forget the salary.  His money is working for him.

                                 

                                ---  A large portion of American society, even though they make substantial money, move themself from the 'haves' into the 'have nots' later in life because no matter what they made, they spend 100% of it and saved nothing. (And therefore, could not invest anything).

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