Capitalism Gets A Bad Rap
I’m sorry to say that capitalism seems to be a bad word in today’s society. People seem to hold capitalism in the same regard as greed.
That if you’re a capitalist, you’re out to rob the poor of everything you can. Let’s examine the logic in that.
How Wealth Works
In 2000, the (GDP) Gross Domestic Product of the United States was $10.2 trillion dollars. By 2016, which is not over yet, it has reached $18.5 trillion. Almost double.
How exactly does that happen in such a short time?
Where does an additional $8.5 trillion come from?
Either the rich have to be buying a lot from each other or the poor are not as poor as we once thought.
Let’s Run The Numbers
We have five common income classes in the U.S.: poor, lower middle class, middle class, upper middle class and rich.
If your household income is $86,000 or more you’re in the top 20 percent of all wage earners. Congratulations, you’re rich.
Let’s keep going.
There are 115 million households in the U.S. with an average of 2.61 persons per household. One household in 50 has an income of $250,000 or more. That’s 2.3 million households or 6 million potential purchasers.
What if each of these 2.3 million households (not individuals) spent just $75 a day or $27,375 per year on something? Is $75 a day a stretch for a household with a $250,000 income?
We’d be talking $6.296 billion going into the economy from just 2.6 percent of the total 115 million households. That’s a lot of school lunches.
The point I’m making is that the more rich people there are, the better off society is. And no other system can produce as many rich people as capitalism can.
The goal of all rich people is for there to be MORE rich people to be able to buy their goods and services.
When we have the freedom to excel we normally do it. If we’re held back by restrictions or regulations we don’t. Capitalism gives us that freedom to excel.
Some Final Thoughts
Right now there are about 97 million citizens who are out of work. If just 90 million could be employed, how much tax money would flow to the government to finance services for the other 7 percent not working?
And many of those newly employed workers would no longer need to avail themselves of government services they were using so the savings becomes serious money.
Working people finance all government programs. The more workers there, the more taxes collected, and many more programs can be provided.
Yet we seem to have a problem putting more money in working peoples pockets and creating jobs. Our focus seems to be raising government income by letting people keep less money in their wallets.
Maybe we can correct that in November.