Wealth and Responsibility

       

           I never have understood how money works. I took a class in economics in college but I don’t remember any of what I may have learned. I know only that if I work, I earn money and then use it to trade for goods. That’s always seemed like a better system than the old barter bit of trading goods for goods. What I don’t understand is how the U.S. can borrow money to run the government and then have to pay interest on what was borrowed. Who loaned it to us and who’s getting the interest? What would happen if we just declared bankruptcy? What would be the consequences? I simple-mindedly shrug my shoulders at these monetary considerations. And, just what the hell is a bit coin?

          Another thing I’ve never understood: How does the stock market work? If we have extra cash, we can buy stock in various companies. Then, if those companies do well, our investment goes up, just like the way that individuals like Trump and the other Forbes 400 accumulate money, accumulate it to such an extent that it becomes ridiculous. Money makes money without ever having to work for it, and the more money that piles up, the more and more and more it makes. What about all of us who don’t have any extra cash to invest?

I just read an article that included some frightening statistics about accumulated wealth. According to Oxfam, the international organization focused on the alleviation of poverty, billionaires around the world last year increased their wealth by $762 billion, enough to end extreme world poverty seven times over. Also, 82% of the money generated last year went to the richest 1% of the global population. The poorest 50% got nothing. Only 42 people in the world have the same amount of wealth as the poorest 50% of the world. “Oxfam is calling on governments and international institutions to recognize the detrimental impact our current economic system is having on the world’s poor and work to develop more human economies that prioritize greater equality. Policies such as ensuring all workers receive a minimum ‘living’ wage, eliminating the gender pay gap, protecting the rights of women workers, and ensuring that the wealthy pay their fair share of tax would go far in achieving this goal. Oxfam estimates a global tax of 1.5 percent on billionaires’ wealth could pay for every child to go to school.”

This from the L.A. Times (Nov. 11, 2017): “To really comprehend just how insane the wealth concentration has become, consider Jeff Bezos, the head of Amazon. Worth about $90 billion (that amount since this was written has gone up another $15 billion), he recently was declared the richest man in the world. In October alone, his wealth jumped by $10 billion—or more than $13 million per hour.” This from The Guardian (Nov. 8, 2017): “In a report, the Billionaire Bonanza, the thinktank said Donald Trump’s tax change proposals would exacerbate existing wealth disparities as 80% of tax benefits would end up going to the wealthiest 1% of households.” Also, “The study found that the billionaires included in Forbes Magazine’s list of the 400 richest people in the U.S. were worth a combined $2.68 trillion, more than the gross domestic product (GDP) of the UK.” The entire United Kingdom! Yikes! And John Hoxie, another co-author of the thinktank report, said: “So much money concentrating in so few hands while so many people struggle is not just bad economics, it’s a moral crisis.”

          A moral crisis. Why does anyone need so much wealth? Is it simply a sign of power? Is it simply so that we can now own that mansion and that yacht and all those really expensive cars? And why does anyone need that much power or need that many toys? How much money does anyone need to lead a satisfying, fulfilled life? If your answer is $100 million, or even $1 billion, then why can’t Bill Gates, Warren Buffet, and Jeff Bezos donate the rest of their fortunes to eradicating poverty not only in the U.S. but in the entire world? Why can’t those oil-wealthy potentates in the Middle East do the same?

            I don’t know. I’m just a money moron.