The detrimental effects of unfair wealth distribution.

77

By wrenfrost56

Making money matters.

Everyone, everywhere is looking for ways to make money because in most cases their basic income is not sufficient enough and they then feel like they need to persue other avenues for extra income streams. Cash and currency are so very important to the way we live our lives, that one can literally not afford to be without some kind of financial injection. Where the regular cash flow originates from are as varied as the denominations attributed to them, this is where for the most part, the system for the masses, seems to fail.

A decent and fair wage, equal to the time and effort required to fulfil it, would appear to be the logical way to compensate someone for their efforts. However when skill, talent and entertainment is involved with a career, it is still more difficult to correlate and judge how one should be paid. As opinion, the market and industry differs also does the wage divide. There is no doubt the gap is increasing and that the ever increasing rich poor divide is detrimental to all, even the super rich. Lets consider some facts and figures, and explore the reasons why.

By hook or by crook.

Over 90% of the worlds wealth belongs to less then 10% of the worlds population and the rich/poor divide is widening rapidly further. The reputation of capitalism and globalization has taken another blow since the 2009 recession.

Wealth and crime are intrinsically linked, this is more obvious then ever when we consider crime data and reports in poorer countries and the wealthier ones. We can also comepare 'rich' and 'poor' areas in any country and see that those most affected by crime are not the millionaires in the suburbs.

This does not however mean that those with money are not affected by crime, indeed they are, especially when they are away from their properties, either on holiday or staying in a second home.

The problem with the pyramid system.

We are warned against pyramid schemes all the time, we are told that they are not financially or economically viable, why then does the whole capitalist system primarily work on this precept?

You get lots of people at the bottom of the ladder doing all the harder, manual labour for many hours and hardly any money, next up you get fewer people doing less work but getting paid more and so on and so forth until you get the head honcho doing the least amount of work, least amount of hours and yet getting all the awards and privileges.

Company bosses argue that they put all the hard work in the beginning and that they deserve the rewards now and they employ all these people, is not however that in fact all these people are making money for them?

Exploitation or euntreprenurial.

Brand power is big buisness but these are only backed up by there own advertising. Just because its a big firm doest mean its a better product or service. Also don't be fooled into thinking that just because a product or service costs more the people behind it are payed more, in most cases the exact opposite is true.

Where does the money go?

During the recession, it was banded around the concept that we were all a little short of money, but surely we all can't be short of money, I mean where did it all go? Did it all just evaporate? Did it just get misplaced or did it vanish?

Money matters are increasingly more difficult to comprehend and unless the systems fundamentally revolutionizes, because the way currency is distributed is unfair, things are going to get a whole lot worse for everyone.

With more cuts to jobs at the bottom of the ladder and huge bonuses still being paid out for ridiculous amounts of money at the top. The government and society at large really need to look at how we all live together in this world and how will would all benefit, surely?

Do you think the current economic system....

  • Works just fine
  • Needs a little work, but for the most part is good.
  • Does not work and is unfair.
  • Don't know.
  • Don't care.
See results without voting

Comments

Trsmd profile image

Trsmd 15 months ago

I liked this page, voted up and shared in my facebook..

nicomp profile image

nicomp Level 6 Commenter 15 months ago

"A decent and fair wage, equal to the time and effort required to fulfil it, would appear to be the logical way to compensate someone for their efforts."

We pay for effort but we pay more for results. Replacing the incentive to produce results with the incentive to give effort is a formula for disaster.

HSchneider Level 6 Commenter 15 months ago

Great Hub. The disparity between rich and poor has been growing exponentially the past decade in the U.S. The conservatives have been successful in passing tax cuts that overwhelmingly benefit the rich. Now they are attacking our unions. They do not understand that concentrating all the wealth in the hands of a few will leave no money for the lower classes to spend. Thus the golden goose disappears. Henry Ford knew this early in the 20th century so he paid his workers well. Thank you for your Hub. You analyzed the situation very well.

CMHypno profile image

CMHypno Level 6 Commenter 15 months ago

It was interesting that in the last decade of a Labour (socialist) government in the UK, that the wealth gap between the rich and poor grew wider all the time. So much for socialism! Interesting hub wrenfrost.

CHRIS57 profile image

CHRIS57 Level 5 Commenter 14 months ago

Good topic, good essay.

Wealth distribution is well measured with the Gini Index of inequality. In the US during the Great Depression that index showed the same high 40% as it shows now a days, which coincidence. That figure is quite bad, shows high inequality at the same level with Russia and China. Only few countries like South Africa or Brazil have a worse distribution of wealth.

I live in Germany (Gini 29%) and my job took me last week to Danmark (Gini 25%). I experienced a difference in attitude, in living conditions, in concentration on mutual interests between those countries.

In my view both economies have a fair distribution of wealth and income, but the 4% different Gini is shimmering through.

What do we have to expect of economies with higher levels of inequality? More crime, more selfishness, more lack of solidarity?

I am not an expert sociologist, but my globetrotting experience tells me that there definetely exist correlations between inequality and crime rate.

I would try the statement that fair and mutually agreed distribution of wealth and income in a given economy prevents from crime and bad sides of life.

mtsi1098 14 months ago

When I read your title - I knew I was going to like this hub and you are absolutely correct. The working world is a pyramid where only the top benefits. Having spent most of my career in the middle of the pyramid, I have to appreciate the hard work that goes in at the bottom and filter the garbage from the top. I am not sure why the top disregards the bottom as it is the bottom that keeps the top afloat. Nonetheless, I am aware of this business model and agree it is difficult to measure skill and performance against social and political so I just be the best I can be and do the best I can do...very enjoyable hub...thanks

katiem2 profile image

katiem2 14 months ago

Very powerful stuff on the detrimental effects of unfair wealth distribution in all countries. It's a mess, thanks for covering this troubling condition as it is on the rise. :) Katie

Submit a Comment
Members and Guests

Sign in or sign up and post using a hubpages account.



    • No HTML is allowed in comments, but URLs will be hyperlinked
    • Comments are not for promoting your Hubs or other sites

    Please wait working