A touchy topic of discussion. I have had countless debates with people that refuse to open their eyes and see the obvious. So I’ll start this post with
“Don’t believe a word I say. I am only the messenger. Do the research yourself. This is all public information.”
There is an incredible gap between the average person and the 1%. The top 1% income earners control 43% of America’s wealth and the next 4% owns an additional 29%. Basic mathematics thus states that the remaining 95% share the remaining 28%. The top make $717,000 and the average make $51,000 but the real difference is the top average 8.4 million in net assets (70x more than the lower class). Most people think success is based on hard work. But statistics prove the total opposite is true. America’s productivity increased by 80% since 1979, but incomes have not risen accordingly if not at all.
Average workers make significantly less than supervisors and execs. Corporate executives make 62x more than their employees just in bonuses alone before salaries. To put that in perspective, their bonus could have paid 62 salaries or created 62 new jobs
Food, insurance, and other expenses are consistent across classes. Housing is the number one expense across the board but the wealthy’s 2nd biggest expense is travel. 17% is spent on business and pleasure travels where 17% of the average person’s wages goes to feeding their family
The top income earners send their kids to private schools and to college and top universities where the average hope for scholarships and loans to pay for their tuitions. A lower income family can send their children to Yale and Harvard but the truth of the matter is that it is a lot more difficult thus creating more of a social and economic gap.
In theory, anyone can become wealthy but generally wealth flows from one side of the population to the other. While money normally flows to the upper class it normally does not flow the other way. In the last several years, Wall Street profits have increased by 720 percent, while unemployment rates have doubled and home equity has dropped by 35 percent. Since 1979, the bottom 90 percent of the nation has consistently lost money while the upper classes have made huge gains. If the average person’s wages had kept pace with the economy since the 70s, most people would be making $92,000 per year.
The so-called trickle-down economy has never worked, despite their claims. Most extremely rich people do not spend enough money to stimulate the economy; they save or invest their money rather than spending it which does not promote wealth among the lower classes. The top 1 percent may pay a higher percentage in taxes, but overall the lower classes are still paying more in tax revenue. People in the 15 percent tax bracket pay roughly 30 percent of the total tax gathered in the country, and their income tax accounts for more revenue for the government than any other bracket. Worker pay taxes in 7 tax brackets from 10% to 39.6% ranging from incomes up to $9075 to more than $406,750. Where as the top, top earners only pay 15%. Those tax breaks are meant to create jobs but tax breaks normally do not create more jobs but increase salaries and create higher bonuses.
The real creator of jobs is demand. Basic business economics is
“Increase profit and decrease expenses.”
In laymen’s terms, hire as few people as possible that are required to get the job done.
This philosophy does not promote the creation of job. So to stimulate the economy and create jobs, the only real way to accomplish this is to increase salaries amongst the masses who are consuming the products which will force companies to match the demand by hiring more people and creating new jobs to match the demand.
This is the reality of the economy. But knowledge is power. Is it more difficult to create wealth. Absolutely. But no one ever said that it would ever be easy, only that it will be worth it. The greatest feeling in my opinion is to pursue a dream and vision and fight for it. To go from where you are to where you need to be to achieve it. Accomplishing is the greatest feeling in the world, but you will have to fight to ever achieve that true essence of success and fulfillment in life