I want to live in a world with income inequality, and here’s why.
If I have no incentive to work harder, learn more, work longer, and deliver better value to others, then I won’t. If others do not have that incentive, then they will not, and be unable to give me good products and services at low prices, and care little because they are being paid the same as everyone else.
A world with income equality is a world where nobody is trying to make anything better. The standard of living is low for all, and stagnant. There is a floor AND a ceiling on our income, and each day we go through the motions, and that’s about it. Nobody, from the least talented and ambitious to the most, has any incentive to produce.
Let me double down and tell you why I want to live in a world with INCREASING income inequality. When we say income inequality, we are comparing top income earners to the bottom. The bottom is zero, or close to it. The bottom doesn’t move. It will always be zero. Some people produce nothing for others, so they have no income, and this will always be true.
The way to make an income is to produce things others value. If the top is going up, that makes it easier for me. As I have said before, if I am to be a pauper, my chances are far better if my neighbors were all rich, than if they were all paupers too. Thankfully, there are people doing better than me!
What do you think? Should we have a world where everyone’s income is equal, or where it’s like it is now?
Tell me with the orange button!
Spot on! I have always pushed to do more and to do better than others, my reward is being compensated more!
I agree! This is an interesting way of looking at it.
Excellent analysis and so true for the enterprising minds of the world. You continue to inspire with your daily messaging.
Many Thanks, Dale
Never would one imagine how rapidly this nation is trending the opposite way. The 1776 Project gets it right for the birth of equal opportunity to reach for the sky!!!
We’ve got to wake up to what happening right NOW!!!
Larry, you have always showed a keen understanding of human psychology, especially motivation and performance.
You nailed it in your analysis! We need enough people in America to realize this, before it’s too late. If income inequality were truly unleashed in America, there is no telling how great it could become for vast majority of everyone. Even those that disagree with it. We had a nice taste of a strong financial surge, just before COVID. Lord willing, we’ll have more opportunity to crank up the American economy again, and keep it cranked up.
Thanks for all you do, Larry!
I absolutely agree with this post! I’ve often reminded myself, when I’m having a bad day that if I never have a bad day, I wouldn’t know what a good day looks like. Unless there is some sort of measurement in everything we do, there is no incentive to do better.
I love these daily posts. Thank you for your words of wisdom.
Amen Larry! Great way to look at it.
I agree and disagree. Most people who change the world or have a large impact on societal change are not doing it to be rewarded. Either they have been blessed with a special gift, have been nourished from a young age, or experienced something in their life that imbedded a desire to make change. This idea that we have convinced our children and ourselves that symbols of expensive things and fancy status should be the driving factor in how much work ethic one should present is absurd. However paying people fairly and rewarding those who go above and beyond makes perfect sense.
But lets be clear, the Lord does not care about the economy. He cares how we treat each other and how we take care of this beautiful earth he created for us. I love Think Daily and thank you for taking the time to share it with us.
I agree with your sentiments. If the results of income inequality is visible and obvious, everybody knows what they need to do to move their individual bar. Handout is not the answer. If we push ourselves from within and do our best, income will not be a problem. But if we wait for someone to do it for us, then we are doomed.
Venezuela, The paradise of income equality. Soon to be the USA if we let it.
Cory, well said! I am only speaking for me. I am in the category of having “experienced something in life that imbedded a desire to make a change.” I know a lot of people that own businesses and are using them for meaningful change in their communities and beyond. Very few of them have convinced themselves and/or their children that expensive things and fancy status should be a driving factor in how much work ethic one should present. Nearly all, use their businesses as tools to change the life trajectory of many, in a meaningful way. Paying people fairly and rewarding those that go above and beyond is an everyday thing for them, and for myself. Doing this in a thriving economy, where everyone is lifted up, and the givers give significantly, is a beautiful thing to see. I’ll continue to pray for a thriving economy, where the majority can be lifted up. If it’s a worthy prayer, it will be answered. If not, it will not. Regardless, we should be outstanding stewards of all we’re blessed with. That’s each other and this beautiful earth – which is very well stated by you.
Absolutely Income Inequality!!! We want true Innovation to inspire us to be our best and to make constant progress toward worthy objectives and goals. Let’s discover what is possible!
We should have income inequality.. Otherwise, why would anyone want to do any better, more importantly, why would anyone want to be any better? The lost art of working to become better or to get better needs to be brought back, I may be a little bias about this, but I still believe in earning what you get. Call it old fashioned or whatever you want to call it. The truth is, everyone should earn their “trophy”. If you are in an area where you don’t have the capacity to get that “trophy”. Either try a little harder or get in the area that better suits you. We all face inequality every single day. Some of us don’t complain about it, instead, we work harder to be better. To me, it’s a competition within myself that I intend to win…
spot on Larry!
I agree 100%. The problem in the USA today is Entitlement Programs. They only confirm that being lazy & NOT wanting to get better is much easier, then working 40+ hours a week to get ahead. It also confirms how bad this new idea that every child gets a participation award is, instead of 1st, 2nd, 3rd place. What message does that send to our youth, all I have to do is show up & I get a trophy. The American dream is all about being able to get ahead, not be content with the status quo, to just get by. Competition in life & business has ALWAYS been healthy & taken away would only be disastrous. Keep up the good work!
Just an observation on your if statement: “if I am to be a pauper, my chances are far better if my neighbors were all rich, than if they were all paupers too.”
Yes. I agree it may boost more chances for better living. But is it realistic for a pauper to afford to live with rich neighbors?
I have had a similar discussion a number of times through the years with folk, including some staff. I have ask “Would you rather make $10/hr working for an owner who works right beside you every day and makes the same s you or would you rather make $15/hr working for a rich man who never shows his face at the job and is golfing every day. I have been very disappointing that the majority of responses have been to work for the owner who is poor. I fear our educational system (and I would include parenting in this) have failed us.
Hey Boss I think you are exactly correct. I have been against the “union” mentality for years. It’s a great model for low productivity and bad attitudes but a great model for socialistic behavior.
I am for inequality in pay. But some people seem to think that money is like a pie. There are only so many pieces and if one person gets more it means that they get less. But that is not true. Most things increase when everyone is doing their part and adding value so everyone can earn more.
As our company has grown in revenue and profits we are able to pay our productive employees more and offer them more benefits. But those that don’t do their part and do no more than just show up, should not and do not enjoy those same increases. It would not be fair to those that are adding value and would decrease their moral. Our Company would die and we would all be without an income.
This is one of your best blogs.
I think that’s a great way to think about some of the current events I’m with you Larry
I absolutely agree. There should be equality of opportunity – but that in no way implies equality of results. This shouldn’t be viewed as a zero sum game, and you are clear about that in your article. A rising tide lifts all boats, and creates greater opportunity for all.
This is a great philosophy for a rich white man from Connecticut. As you say “ if I am to be a pauper, my chances are far better if my neighbors were all rich, than if they were all paupers too.“ How fortunate you were to grow up in an affluent neighborhood with access to good schools, but not everyone has the same advantage Larry. According to 2020 Pew research, white women make 83% as much as what men earned per hour in similar jobs, these statistics are even worse for minorities. Do you believe that women and minorities deserve to make less than white men because we don’t work as hard? Or are we less incentivized to work hard because when we look at the top income earners in the US we see a sea of old white men ?
I never comment, but this post and current state of affairs have moved me to do so as an exception because I know the consequences of so called income “equality”. By way of background, I spent my early years in a communist (they called themselves, democratic socialists, sounds familiar) country, of the Eastern Bloc, that(and the rest of the communist/socialist world) professed to have achieved income equality. The common refrain to that was that, “they pretend to pay us, and we pretend to work”. I was most fortunate to have parents that risked it all to escape from there (from “income equality”), along with their children, to a land of equal opportunity. God Bless America, I do love it so. (and for what it’s worth, we arrived here, legally having waited a year in limbo outside the US to do so, with 2 suitcases for 4 people, and less than $100 in my father’s pocket. All the rest is hard work, and no excuses.)
You nailed it. We all have the opportunity to increase our financial standing in this great country. Let us not forget what has made America great, its something called capitalism. If we loose that our envy in the world is over. Our desire to risk and fight each and every day is over. Give me income inequality, it’s my motivator!
I agree with Bill, Great post Larry!
I also just learned that Bridgeport apparently is a very affluent part of Connecticut. Who knew!
Growing up in an apartment on the north end of Bridgeport with five siblings and always wearing hand me down clothes I started shining shoes when I was ten years old on main street in 1968. I soon realized that the best place to shine shoes was in the biker bars, the bar tenders always tried to kick me out but the bikers always won and let me shine their boots, I made a lot of money! I have been improvising and learning all my life and I`m doing pretty good, always trying to lift people around me.
Very well said and I believe the majority of people will agree with you.
LARGE MAJORITY
Truer words have never been spoken. They are based on fact and are perfectly reflective of human nature. The social cry for income equality is a political dogma that is animated by strictly emotional reactions. We live in a strange world where immediate access to millions is achievable thru social media. A world where senseless and even destructive ideas are cast across the globe. You are doing your part to counter these counterproductive ideas. Keep it up!
Hey Cornelia! Thank you for being part of our community and voices. I just want to clarify, Bridgeport, where I grew up, is NOT an affluent community. The schools are not good at all. I did not go to college. I am doing what I can by writing Think Daily to share and educate others so they can be successful too. AND these days I pay for 6 black children from my hometown of Bridgeport to go to private schools (the same school I sent my kids to) including buying a van and hiring a driver to get them there, so that they will be more likely to succeed. (This is why school vouchers are important so low-income people can escape the failing public school system that they have no choice in attending.
I’m trying out here! Thank you.
I can agree in principle, but your argument is too simple. If people have integrity and compassion, this works. When they don’t, and employees can’t make a living wage, they can’t change jobs because they lose health insurance, they become like indentured servants. Yes, this also is an oversimplification, but that is the point. There can be middle ground where people are free to grow as much as they can, as long as they treat people with respect along the way. If you are going to own a business, I believe you should be obligated to take care of your employees. When they choose another path, what other option than for government to step in?
Amen!