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There’s a Case to be Made for Income Inequality, says AMAC

earnings money cash income‘It fuels ambition and ambition stimulates economic growth’

“If Bernie Sanders and his crew were serious about putting an end to poverty in America, they’d be promoting income inequality, not condemning it,” according to Dan Weber, president of the Association of Mature American Citizens.

Income inequality can be a good thing, says Weber.  “It fuels ambition and ambition stimulates economic growth for all of us.  America is a country where individuals use their own talents and ingenuity to create wealth, not just for themselves, but for their neighbors far and wide as well.”

Weber is a staunch believer in the old fish story: Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.  “In other words, government hand outs are actually an impediment to success, especially for low earners trying to get ahead.  Sure, the need for a safety net so that those in need are fed and housed is not up for debate.  They need our help and we owe them all the help we can give.  But what is debatable is the concept that income redistribution is the answer to poverty.  It’s not.”

The Manhattan Institute’s Scott Winship is an authority on the topic and not so long ago he concluded, based on extensive research, that developed nations, where income inequality is prevalent, offer higher standards of living for the poor and middle class.

Weber notes that “the U.S. has more than its fair share of billionaires and their wealth creates jobs and opportunities for the rest of us—not to mention their outstanding record of contributing to worthwhile charitable causes.  Think about it.  Microsoft’s Bill Gates and Apple’s Steve Jobs created wealth for a broad spectrum of the population by creating thousands, if not millions of workplace opportunities.  And, in doing so they created not just new jobs but a more educated work force manned by individuals with better earnings potential who, in turn, provide for the education of their children—kids that grow up with even greater earnings potential.”

It’s those who have amassed wealth that are the job creators, says Weber.  Big government, on the other hand, provides a disincentive to job creation much of the time.

“A lot of well-intentioned people support government efforts to increase the minimum wage in America as a means of offsetting income inequality, for example.  But, a higher minimum wage has a widespread negative impact on job creation.  He points out that small business is the principle engine that drives job creation.  But, raise the minimum wage and we force small business owners to reduce the number of people they employ in order to survive.  They’ll invest in automation to deal with rising payroll costs.  In some cases, they are forced to shut down altogether.  Either way those seeking jobs – the young looking for their first jobs and the old who need to supplement Social Security income – ultimately pay the penalty.  It all comes down to one thing: equal opportunity; an equal opportunity to join the workforce, in the first place and then an equal opportunity to advance in the workplace.”

ABOUT AMAC

The Association of Mature American Citizens [http://www.amac.us] is a vibrant, vital senior advocacy organization that takes its marching orders from its members.  We act and speak on their behalf, protecting their interests and offering a practical insight on how to best solve the problems they face today.  Live long and make a difference by joining us today at http://amac.us/join-amac.

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38 Comments on "There’s a Case to be Made for Income Inequality, says AMAC"

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It would be advisable in future articles, if you referenced a few specific examples to prove your point. In the case of the proposed minimum wage hikes to $15 an hour or more, in addition to states like Washington and California who have already seen numerous small businesses close and the employees of those businesses lose their jobs, McDonald’s is now planning to replace the employees now taking your order when you go in with automated kiosks. This will be done nationwide and will put tens of thousands of low wage workers out on the streets. Other fast food companies are already planning similar efforts. The same holds true for any small business where margins are tight and prices cannot be arbitrarily raised to offset the higher labor costs mandated by government bureaucrats. So when some Progressive (Socialist) politician in Washing, D.C. or in your local state, that is completely… Read more »

Hi PaulE, great comments as usual. I guess if ALL people had Common Sense it would be more common. The Progressively Communist Democrats have never had or understood Common Sense. If they did we would never be arguing over their stupid ideas. They also lack being students of history, where there has NEVER BEEN a successful Socialist economy!!! “Yet, they just think this time it will work”. … Duuhhh!!!

HI Rik, Those in government and the private sector, that are the leaders of this movement, are NOT stupid. They know full well that the policies they are pushing won’t deliver the societal Utopia they are promising the average person. They are relying on the fact that they have been dumbing down society for decades, through their steadily growing control of the public education system in this country and a willing and complicit media, to create a majority of “useful idiots” who will surrender their freedoms and futures in exchange for those empty promises. Those leaders now believe we, as a society, have almost enough “useful idiots” for them to complete the final few steps into our transition to socialism. They are not necessarily wrong based on the level of acceptance Bernie Sanders had last year. Massive crowds of Millenniels and many 40 and 50 year olds cheering for the… Read more »

Fantastic post. So well expressed. Thank you for trying to educate people. It’s baffling that people can look around the world at–China (hundreds of millions killed and mass poverty for decades until the Chinese turned to capitalistic methods and were the lucky recipients of American businesses fleeing developing socialism in the U.S.,) Russia (still poor and struggling since they ran out of “other people’s money” circa 1960’s,) Cuba (Castro is dead and these poor people are STILL struggling under communism,) North Korea (is NK anyone’s utopian dream?) and yes, Venezuela and even the growing desperation in the European countries–and still believe the socialism holds any promise at all of a happy and successful society. Socialism can’t even feed people, much less educate them, serve their medical needs or provide even the least adequate housing.

Thanks PaulE, I already knew everything you just explained but I never could have expressed it so simply. Anybody who reads your comments should print them out and give them to their children and grandchildren. My personal frustrations with the stupidity of the general populace quickly raises my anger whenever I try to educate and reason with them. How about you running for President, you’d have by backing and my vote!

Hi Rik, When I talk with most young people, I try to make everything relatable to them by use of actual, real-world examples. Just talking “Founding Fathers this” or “Founding principles that” means nothing to most people under the age of 50, because most have been taught that our Founders were either all racists or “evil capitalists who only cared about themselves”. All the result of our marvelous Progressively -dominated public education system and our mainstream media. So rather than get into trying to disabuse them of all that idiotic nonsense they have been indoctrinated with, I focus on illustrating various points through verifiable, real-world examples that even they can google if they have the interest and sufficient intellectual capacity to do so. It just helps clarify the various points I’m trying to convey to them in terms they can hopefully grasp and avoids the whole pre-programmed set of responses… Read more »
Great discussion points and explanation of our government. Socialism is in fact the organized theft of others wealth and earned income by a government armed with “laws” Courts and GUNS. I am not calling for an armed revolution but the possibility of an armed population’s response to government lawlessness and organized theft MIGHT give the thieves second thoughts. Socialism and Communism are just other names for organized crime by educated briefcase carrying thugs. When you look closely at nations that have drifted into a socialist mode over the years you find a controlled population of passive drones just happy to have all their basic needs provided for by that all powerful government. That is the top of the mountain for them. If the government becomes malignant and decides to oppress the society they have NO recourse and like sheep to the slaughter those individuals NOT part of the oppressive government… Read more »

Love your comparison to organized crime by educated briefcase carrying thugs. Never really thought of it that way although I do sometimes think of Boss Tweed in NY. But then, I had real American history in the old days. Nicely done!

PaulE: Don’t forget about the redistribution of world population and how this plays into all of this. I recently heard a radio program that alleged that the movement of many from the Middle East to Western Europe and America is part of a larger U.N. plan to solve the threat of decreasing populations in the West. This is interesting when you consider how for years we were warned about a threat of overpopulation on the planet. This is also allegedly part of an effort to provide the necessary labor force for jobs that many refuse to take or where there simply aren’t enough workers. In the end, who do these new immigrants become loyal to? Will they become loyal to a party that offers them sustenance from the government or a party that offers opportunity to obtain happiness and prosperity by giving back through hard work and an industrious attitude?… Read more »

You’re both so right! And as far as socialist ideas working, even the communes in the ’60’s didn’t work. Just an example of something closer to home….

There are some ‘Communes’ that are, like the Quakers for several hundred years. But I don’t know of any surviving communes of the 60S. :>)

It’s late in the day, PaulE, but having waited to read what others had to say, now it’s time to speak. That “more than its fair share of billionaires” that the U.S. has does not mean that all rich are created equal. Some may be deserving but many have profited from the Progressive policies of the Statists. Then the nod “that small business is the principle engine that drives job creation.” So which is it? And do billionaires make it by competing in a free market environment? I say not. Most large foundations formed by the wealthy promote and support non-competitive and socialistic (progressive) political ends. Small businesses are monopolists’ adversaries. Big businesses and monopolies are impossible in a free market laissez-faire era, as was America from its founding. By joining the utopian left and its Heaven on earth Statest philosophy, they used government and its powers to promote direct… Read more »

“fair share of billionaires”??? What sort of nonsense is that? Is that part of Obama’s “at some point you’ve got enough money” (unless you’re Obama or a Clinton). Still, that quote is a good argument for term limit for Congressmen.
On problem seems to be that more than a few billionaires have embraced leftist, progressive policies. And they have a louder voice than the rest of us.

“Big businesses and monopolies are impossible in a free market laissez-faire era, as was America from its founding” J. P. Morgan (the man), Rockefeller, Carnegie, Huntington, U. S. Steel, …..

As for job creation, if you’re looking for a job, ask a poor person.

ZZMike, that “fair share” was a quote from Weber’s article. As for Morgan, Rockefeller Carnegie, etc., they amassed wealth through anti-competitive practices. Rock, by using rail monopoly to fix shipping prices for competing firms. The devil is in the details.

Rockefeller &c is what I was talking about: the downside to monopoly. The trick is how to balance the overreach of government against the dangers of monopoly.

Billionaires, like Gates, were once ALL heads of a small business. It is the FIRST in any new small business thread that benefits from the rewards of free market laissez-faire (as do consumers), as was America from its founding. What Gates, or other such billionaires, do with their now-earned wealth is THEIR individual freedom-of-choice as our Constitution allows. Isn’t THAT what America is all about? Serious scholars all agree on this, otherwise there would NOT be any effort by Marxists/Socialists to confiscate individual freedom/liberty/money/property/etc., (all equivalent sides of the identical coin, as the age-old adage reminds us) from OTHERS (“small business”/”little people”/”big business”/”the wealthy”/”the black-sheep/hunchback/odd-person”/etc.). It is when the negative human frailties of “control-over-others”/”self-edifying-ego”/”fame”/”greed”/ “jealousy”/”power”/etc. rears its/their ugly head(s) that free-market laissez-faire is obfuscated to suite the thieves of our individual Constitution Rights. IT is when these thieves sell their obfuscated “issue” to the voters (if accepted), that ALL Americans… Read more »

Income Inequality is not and never has been a problem. The entire argument is based on envy compounded by an assertion that the wealthy somehow got to their position by ripping off the poor which is generally a very big lie. I have never been wealthy in a material sense and never will be. But I have no issue at all with those who are if they came by their wealth honestly. I admire them if they earned it personally. They are an example to us all, an example of how America is the land of opportunity, not equal outcomes, but opportunity. This issue is pure class warfare being waged primarily for political purposes, it’s sad, and it’s very wrong.

Excellent post, Wayne!

Not everyone is equally motivated or dedicated or puts in equal effort or work to achieve their goals.
So why should there be income equality ?

Speaking of income inequality
why should any Clinton get hundreds of thousands of $ for a 45 minute speaking fee
how is it that many US Congress people leave office having accumulated serious wealth.

Grimaldi is right. The drive to excel, or at the least afford to own the latest widget would disappear if the lazy and unambitious made the same wages as those who are willing to take risks, and work hard to improve their conditions.

The only way to ensure income equality is to make everyone equally poor.

Making everyone equally poor might actually
Be the goal of the lefty socialist progression lib dems
Excepting of course the political, the media, and the Hollywood libs.

The real purpose of income redistribution is NOT lifting individuals out of poverty. It is a policy designed to drag most of a population down to a subsistence level. The bulk of those societies then depend upon government for jobs with controlled income levels. The old and disabled are totally dependent on government since they never could accumulate any real wealth for their old age. The very small class of elites and oligarchs run the powerful government that in turn is usually one Party and is impossible to change. There is virtually NO social mobility and society soon devolves into a stagnant mass of individuals with little or no ambition. Lo and behold you now live in North Korea where society is organized to serve government and prison camps and slave labor are the norm. This might sound extreme but I believe a nation forcing redistribution of wealth does at… Read more »

There is no “national income” to be redistributed. All income belongs to those who earn it. Thus, ANY redistribution (e.g., minimum wage, Refundable Tax Credits, Disability & Unemployment Insurance, food stamps, Obama-phones, etc., etc., etc.), is nothing more than Marxist theft.

there SHOULD be a debate about “safety nets.” If at all, these are to be provided by the PRIVATE SECTOR, under the US Constitution.

I remember several years ago a client of mine, who was and remains the chairman of one of the world’s largest food companies sat before Congress on the subject of paying higher wages. His response was spot on then and remains that way today. He said (paraphrase), “when the customer is willing to pay a fair price for our products, we will increase the wages of our employees”. The issue becomes one that is part of American culture. We want it NOW, we want it GOOD, and we want it CHEAP.

Normally, in business, they can provide two of the three but not all three simultaneously.

Think about it.

And therein lies the problem. We can’t have it all, however, since many of us are spoiled brats, we demand it all, hence “made in China” has become the new American manufacturing state.

So true!!! Concise. Well said.

Liberals have convinced themselves that economic growth is a prime factor in causing climate change. Obama ( and the Democrat party) are/were touting 1.5% growth as the new norm and we have to get used to it.

In other words, Democrats/Socialists don’t want economic growth. Slow growth also contributes to the permanent underclass of those dependant on big government
the Democrats need to sustain their power.

Income redistribution will bring about equality … we will all be equally poor!

The HOG wash that Bernie sanders is putting out is just that. It takes away a persons since of achievement and worth. If you cannot get ahead, then what is the purpose, or reason for doing anything. Your going to punish those who don’t work. Then you have. Slavery!!!!!!

I am not envious of those who make more money than me, what I have a problem with is getting taxed more because I have no ” special ” deductions to lower my taxable income. There should be fair standard deduction across the board and nothing else. None of this having most of the money called “investments income ” so the taxable amount is lowered. As most seniors on Social Security know, any money we have in income over $ 25,000 is taxable. For those of you who have comfortable income for your lifestyles stop reading. I am talking to those who have only $25,000 to $75,000 who’s has to pay tax on social security on top of paying tax on all income. Medicare is not free and that costs comes out of social security. By the time one gets to full Social Security retirement age, you want predictable expenses,… Read more »

This is fundamentally true – except this kind of thinking doesn’t get anyone re-elected nor enhance the “you owe me,” mentality. If one doesn’t get re-elected, how do you get the sweet investment deals through the “legal” insider trading? The mantra of guaranteed equal opportunity does not guarantee equal outcomes falls on deaf ears to Congress. It’s not sufficiently lucrative. Funny how the big push for $15 ignores the current move toward robots flipping and assembling burgers. Who’s on who’s side?

Looking back at the 90s and 1st decade of 2,000, the standard of living seemed to be based on big bubbles of false expectations. 1st came the dot-com bubble followed by the housing-hedge fund bubble where credit was cheap and overly available. So where does our real standard of living lie? Is it back in the 60,S or the Reagan era?

It seems like when the US got off the gold standard the standard of living has been inflated to some degree.

I am always amused about how a educated Professor can spout out the Socialist Communist agenda and believe it. The methods used are to condemn anyone who has any faith or religious values. Like Bernie telling congress and a appointee being questioned for a position to a department, “Christians should not be allowed in office”. There he is spouting this out before Congress violating the 1st amendment and all religious right of all individuals in our Constitution. Once they have the USSR tactic of being anti-religion then they can control all. This is exactly why Politicians should be limited to only 8 years in office and not retire with all the perks that they have given themselves over the last 70 years. The only way that we can stop the Political degradation is by the Convention of States. Why, because no politician will ever vote to be limited to 8… Read more »

When you’re born poor, to crack or some other drug-addicted parents, you don’t eat well, you don’t learn well in school, you don’t have the energy for ambition. You well-ntentioned rich folks who think it’s easy to find a job & work hard , are the ones not in touch with the reality of living in a rotten neighborhood, surrounded by gangs & rotten people who’d steal the shoes off your feet, just for the hell of it, absorbing negative attitudes about cops & rich people who don’t care about anything but their almighty dollar, you’re tired & angry & frustrated, not ambitious. Do some social services work, feed people, get them showers & a place to live, educate them & maybe then they’ll be ambitious enough to work hard for 5 or ten dollars an hour, with no health care.

Tell that to Ben Carson and the many others who have successfully overcome the odds. They we’re not convinced they were victims like they were supposed to believe. My ancestors came here as legal immigrants with nothing more then a few dollars in their pockets. Worked three jobs, put themselves through school to learn a trade, made the necessary sacrifices and over time raise themselves out of poverty. Tired, yes. Frustrated, yes. Angry, never, because they never thought of themselves as victims. They considered themselves fortunate to be here and have at least a shot at making a better life for themselves and their loved ones. And most of all, they WERE ambitious, that’s how they overcame their circumstances. Never once relying on a handout from anyone, especially the government. They would rather go hungry.

Rebecca– It all comes down to motivation. You either have it you you don’t. If you do, you will live your dream; if you don’t, you’ll just dream of that life. And if you think bad things happen only in the neighborhoods you’re describing, I could tell you a thing or two that went on in the little middle-class town that I grew up in. Each of us has faced challenges in life, but the intelligent decisions we make in order to overcome these challenges sets us up for a life that is so much more rewarding than if we had been given everything “from the government”. Find what motivates you, and take the first step instead of waiting for the next hand-out. That could be a simple as showing up for work on time and with a positive attitude. Develop skills, become an expert at something, stay out of… Read more »

There will never be enough jobs for all. The Republicans are telling the poor to eat excrement snd DIE!

Yes, you just keep listening to the fake news networks and newspapers. That’s just what they want you to believe, like good little sheeple that you are. Just make sure you vote our way and all will be right in the world. Yep, all republicans are bad people, just remember.

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