For all you democrats and socialists out there that wants to take (tax) the rich and wealthy and spread it among the rest of the 90% so that financial equality can be possible, well sorry to tell you, it will never work!
Financial equality will never be a reality. Why is that? Because of knowledge.
Think about this scenario:
A poor person, a middle class working person, a white collar corporate employee, and an wealthy business person/investor are all given an equal amount of lump sum money. How will each person likely use the money?
The Poor Person
The poor person will likely use the money for the basic living necessities i.e. food, shelter (rent), utilities, transportation, etc. They may use the money to buy unnecessary items and/or services to keep them entertained such as televisions, movie streaming service, games, and so on. The lump sum will eventually run out leaving the poor person back to being well, poor.
The Middle-class Worker
The middle class worker will maybe save the money in a savings account earning near to nothing on interest. If fact, with inflationary rates, keeping their money in the low interest bearing account is “losing” value. They will maybe spend the money on a once-a-year vacation or try to keep up with the Jones’s and place a down payment on a financed new car. The lump sum will eventually deteriorate in value or be non-existent, leaving he/she to continue on trading their time for money (working).
The White Collar Corporate Employee
A lump sum is nothing new to the corporate employee of a big business. In fact, receiving a lump sum means he/she can lease a newer more expensive car. The corporate worker will never own a car outright. They’ll likely use the extra money to enjoy the “finer things in life” and luxurious materials that are advertised on T.V. Isn’t that the ideal image presented to America?
The Entrepreneur & Investor
The entrepreneur doesn’t keep the lump sum. He/she will put that money to work to create more money. Such as investing in assets, i.e businesses (his/her own or other private and/or public companies), bonds, real estate, and so on. The entrepreneur sees opportunity to invest when he/she receives money and will seldom keep it stagnant.
So what’s naturally happening here between these people who are receiving a lump sum of money to attempt to obtain financial equality?
Now, most people would expect me to give them the answer to this question. But right now I don’t feel like it. I want you to use your brain and think about it. Cognitively draw your own conclusions and understand why financial equality will never be obtained.
If you can’t see why not, stay tuned and learn a little bit more…