In a stunning piece of news, it turns out that rich people have more money than poor people. This report, Millionaires Control 39% of the World’s Wealth, will come as a shock to many people to be sure and spur calls from places like the New York Times to increase taxes.
I found this to be interesting:
As you can see from the accompanying chart, millionaires control 29% of North America’s wealth, while millionaires control about 38% of the wealth in the Middle East and Africa. While the chart makes it look like millionaire-wealth in America is more concentrated, we also have far more millionaires, so their wealth is more spread out among the millionaire population.
So in a capitalist nation, we have lots and lots of millionaires (5,200,000 of them to be more precise). In fact we have less wealth concentrated with millionaires than Third World countries (generally not functioning capitalistic states).
What is also not noted is that something like half of Americans don’t pay any Federal income tax (including your humble author) and conversely the top wage earners pay an obscenely high percentage of total Federal income tax receipts.
What is usually missed is that this is a good thing. 5 million millionaires means more and more people becoming wealthy and wealth is not static. In other words, they create more wealth rather than taking it from the “poor”. Having millionaires to invest means jobs for the working class. Taking money away from them means less investment and fewer jobs.
Do we want to make rich people poor or poor people rich?