Wealth Inequality and Income Inequality Are Fair and Rightfully So
Sun, Mar 8, 2020 7:23 AM on Recommended, Exclusive,
Everyone likes to form an opinion on the topic of discussion about wealth inequality and income inequality. The key thing to be noted here is everyone has a voice and they should definitely use it. However, there should exist a fine line between making a point and being foolish while discussing this issue. Let me walk you through my personal opinion on this topic which isn't meant to offend anyone reading this.
Introduction:
For starters, you should understand the key difference between wealth and income. Income is money earned on a regular basis from a work or from dividends from your investments. Wealth is something you own or possess that usually creates more income for you. You are considered wealthy when you have possessions worth a lot in your name.
The common misunderstanding when it comes to being wealthy in the Nepali community is you're considered to be rich if you're making a certain amount of income above Rs. 2 Lakhs or more per month. Even worse, people that loan out for their personal vehicles and spend on the things that they don't actually need while relying on their incomes are considered to be wealthy.
Then, there comes the topic of wealth inequality. People who don't prefer to research the market trend and the ones that follow the rumors to invest are usually the ones whining about it all the time saying "the rich are getting richer." They are usually the ones that believe life is short and one should enjoy life while it lasts.
Let me make it very clear to you that I'm all about enjoying life. However, I would like to assert that to have a sense of financial security for the days when I won't be able to make as much as I'm making at the moment is absolutely necessary to have. If you're the type of person who seeks pensions and aids, you've already lost in the shuffle of enjoying life wealthier.
In the defense of Wealth inequality
For instance, if I'm saving and investing consistently from the age of 19 until I turn 35 and if you are complaining about the wealth and income inequality while spending all of your money on the things that you don't need during the same time frame, then, you don't deserve to condemn me for being wealthier than you are when I turn 35.
Here, I'm willing to accept the delayed gratification in terms of accumulating wealth and being wealthy in the long run. At the same time, you are willing to enjoy life today by blowing out all of the money you earn on a monthly basis. We have differences and we are not equal. You cannot be jealous of me being wealthier than you in a general sense.
You might say, well some people are born rich. What you fail to understand here is that their ancestors were smart enough to understand the importance of passing down their wealth for their children while yours were not financially smart enough for that. Instead, you should try being smarter than your ancestors and you should try to accumulate enough for your children so that they will someday be called "born rich."
In the defense of income inequality
The one thing that you should really understand is if I'm working harder than you are and if I'm better at managing people than you are, then, you cannot be jealous of me getting promoted to the higher positions earning more than you. If I'm providing more value to the business than you are, you cannot expect the same level of the payout ratio for yourself.
Here, for example, I'm willing to work hard and tackle the problems within a business. But if you're enrolled in the business just for the sake of stable income, you cannot be jealous of me getting more opportunities to shine in the business and of me earning more than you.
Differences between fair and equal
The fair is not equal. Fair is fair and equal is equal. It's unfair for you to get paid the same amount of money as the CEO of a successful business. This is because the CEO of a business takes more risks than you do, adds more values to the business than you do, and s/he is better than you are. Thus, it is unfair for the income of the CEO to be equal to that of yours. As a matter of fact, unequal is more fair than equal. Equal is unfair.
For instance, a student works hard to get an A in his test and another student doesn't study at all and should get an F. However, at the end of the day, every student in the classroom gets an A. How is this fair to the student who studied the whole night without getting enough sleep? There is a different level of effort to it. Likewise, it's unfair for your wealth and income to be equal to everybody.
Conclusion:
In conclusion, wealth inequality and income inequality are never real problems and this gap between the rich and the poor will continue to grow bigger and bigger. We average at around 6% of the inflation rate per year and if you still think life is all about fun, you're probably going to need to change the way you see the world. The real world is scary out there.
If you're not living under a rock, you know there are people in low-income brackets who are way wealthier than you are. You know you can do it as well. The amount of income that you earn is never an issue with building wealth. It all boils down to the point of how willing are you to live below your means and save up for the future.
Wealth inequality and income inequality make the financial market fair. Two people cannot and should not make the same amount of money if one of them is better than the other. Some people are destined to be wealthy due to their hard work while some people aren't willing to work as much. Be thankful for what you have because complaining about these issues won't fix your money problems.
Instead, try to change the way you see and treat your money. You should definitely try to change your spending habits and be a lot wealthier in the process.
