Posted by
Playful Walrus on Friday, October 12, 2007 7:11:16 PM
Why is it news that the rich are getting richer?
The richest one percent of Americans earned a postwar record of 21.2 percent of all income in 2005, up from 19 percent a year earlier, reflecting a widening income disparity among different classes in the nation, the Wall Street Journal reported, citing new Internal Revenue Service data.
Of course the rich are getting richer. That is because, first of all, they are still doing the things that made them rich in the first place. If they got rich in high-paying jobs, and they are still in those jobs – SURPRISE! – they are still getting paid. Secondly, almost all of them invest their money in ways that will earn even more money. That is good, because it means they are investing in companies and ventures in ways that allow other people to earn a living and perhaps get rich, too, and it is paying off.
The data showed that the fortunes of the bottom 50 percent of Americans are worsening, with that group earning 12.8 percent of all income in 2005, down from 13.4 percent the year before, the paper said.
If things are really getting worse for the poor, it can often be due to poor decisions. If you are poor and you take out loans to pay for things, you are spending money on paying interest. Payday loans are the worst. Then there’s credit card debt, and all of the other ways people keep themselves poor.
Stories like this are meant to foment class envy and make us believe that there is a growing gap between the “rich” and “poor”. Don’t believe it. There is growing SPECTRUM. As there should be. Why should the rich stop getting richer? Shold they stop working and sit on their money? That won't be good for anyone.