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Social Equality? So share the expenses of the wealthy, too.

Assuming socialism is right, the rich should give the poor their money. Why does it not also follow that the poor must also then share in the risks/debts/expenses/hard work/smart work/saving money which the wealthy use to create economic wealth?

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  • Apr 10 2013: Joshua,

    I think I understand your premise, but to me it seems to be rooted in some common misunderstandings.

    (1) The economic downturn (i.e. the recession) has actually served to increase the wealth of the top 5% of Americans. They have experienced less risk, not more. The top 1% now owns 25% of all wealth, and the top 5% collectively control 40% of all wealth. This means that the remaining 60% of all wealth are distributed to 95% of people. The downturn has pumped more wealth more rapidly into the upper echelon than before 2007. There is no clear explanation for how this is happening yet, as far as I know, but even people like Warren Buffet are deeply concerned by this trend.

    (2) The idea of wealth is closely tied, if not synonymous to the idea of economic risk. How many middle income families go bankrupt due to a hardship - medical expenses, natural disasters, etc - compared to wealthy families? Wealthy people have much larger safety nets, have access to better health care, access to better financial advice, receive more perks from financial institutions and vendors, and ... drum roll... consequently risk less of their wealth.

    (3) In addition, wealthy people tend to invest their "surplus" wealth - money they don't need to be able to retire, to be able to exist past their working years. This is not true of middle income people or below. Their investments ARE their retirement funds, their "rainy day" funds, and their emergency money. Most need their Social Security money to be able to eat and pay living expenses.

    Sorry Joshua, but I *really* think you're looking at the wrong end of the horse here.

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