Once upon a time there was a really good movie called Wall Street. There happened to be a scene in there that captured the attention of many people. Gordon Gekko (Michael Douglas) got up and made a case for greed. He said greed is good! Check out the scene here. The question I pose is not whether greed is good, but is wealth good? My answer is a resounding yes. My evidence can be found below.
Let's define wealth. AI could give us some robotic collective answer, but here is mine. Wealth is the accumulation of financial assets that puts the individual in a very good situation with money. They can do just about anything they want because they have the financial backing to do it (their money or others). The question is what does a person do with their wealth and how does that affect the world?
America is the land of opportunity where wealth is available to just about anyone who is willing to make the needed sacrifices while working their tail off and accumulating the right amount of knowledge from the right people along the way. Wealthy people are the ones who create opportunities for others. They create hundreds of thousands of jobs, sometimes millions, helping others lift themselves up.
Wealth is good because the wealthy are the creators, not government. In many cases, government hampers opportunities. If governments take too much from the individual (taxes, rights, opportunities, regulation, etc.) less wealth is created. When the wealthy create less, fewer of us get ahead. We end up in a caste like system where we do not leave the place in which we start. Socialism is a good example.
Am I saying all those wealthy people were perfect and did everything right? No, the wealthy have their flaws, just like the rest of us, but I would make the case, the good outweighs the bad many times over. The inverse is fewer wealthy people, which would equal more poverty, less hope, and fewer people getting ahead. I want more wealthy people! More wealth equals more upward mobility!
Here is another point that might seem obvious. I cannot buy stock in the United States government. I could buy treasury bills, but that just keeps me close inflation. Wealthy people pull together money and create stocks of publicly traded companies. Collectively, the U.S. stock market has provided a 7% yearly return on average beyond the inflation rate. The wealthy provides us the opportunity to stay ahead of inflation.
At some point many wealthy folks identify they had enough. They realized more money did not improve their lives or others. We all should strive to reach enough. Your Money or Your Life is a wonderful book that helps us understand the importance of this concept and how it can change your thinking as you evolve as a human being. Learn more about wealth by reading The 5 Types of Wealth.
Please do your best to take politics out of this discussion. I personally don't trust any politicians, staying apolitical. A few hundred people have way too much power and control over money for my liking. I would rather disperse that power and money over millions of people vs. those residing in Washington D.C. I would like to see more wealth created for more people, not just for the well connected.
Let's circle back. Have you read The Millionaire Next Door? Thomas Stanley studied the wealthy and how they lived. They are different, but not so different that you and I could not be them. Here is a key point of the book. Most of the time the average millionaire is a first generation millionaire. They made it themselves, it was not given to them. That is the opportunity America provides to the individual.
There are people (politicians and rabble rousers) who want you to hate the wealthy. They want the wealthy to pay more taxes so it can distributed to the masses (more power and money in the hands of politicians). Consequences? Less opportunity, fewer jobs, lower wages, and stagnation as the individual feels stuck without much hope for a better future. Less wealth is bad for those trying to improve their lives.
Here is the big question. Will wealthy people or politicians improve the lot of the average American? History is clear. The wealthy have by far done more. Yes, they will make mistakes. Yes, they will do what's best for themselves almost always. Finally, yes, they will create far more opportunities for those on the lower rungs than government will or can. We need more wealthy people to help more people get ahead.
What do you think the wealthy are doing with their money? It's not buried in the back yard or sitting in some bank account. It is invested, growing companies and as those companies grow, they hire more people, which equals more jobs for those who need them. I am thankful to those wealthy people for what they have done to make America the wonderful place it is today. Let's learn from them.
We can try to tear the wealthy down or study them. I recommend we study what they have accomplished so we can take those lessons and improve our lives. Let's not forget how much the wealthy have given to help others. MacKenzie Scott (ex-wife of Jeff Bezos) has given over $19 Billion to charity. Warren Buffett has given over $60 Billion to charity. Bill Gates has given over $100 Billion to charity!
One of my biggest heroes is Chuck Feeney. He came up with the idea of duty-free shopping and made a fortune. What did he do with his wealth? He gave it all away. He gave away over $8 Billion to charities over his lifetime as he lived a simple existence, ultimately giving away almost everything he had. Chuck Feeney is a wonderful example to us all on why wealth is good. We can help a lot of people with it.
To sum it up. I hope there are more and more wealthy people who are able to keep as much of their wealth as possible through legal tax strategies, not tax evasion. I have the upmost confidence they will use that wealth to improve the lives of millions of people all over the world. Quality charities do a job that needs to be done and the wealthy are in a position to make that happen. Let's get wealthy!
