Bernie Sanders is the champion of the idea that when one person or a group of people has a large amount of something, it prevents others from having the same thing. During this episode of Freedom Fast Lane, Ryan Daniel Moran asks why it’s immoral and unethical for the millionaire and billionaire class to own the vast majority of wealth.
The Fundamental Flaw
What someone assumes when they say it’s unethical for someone to be ‘that’ rich is that there is a scarcity of opportunity, money, and wealth. If there was infinite abundance, would there be a problem with someone having trillions? The answer is no. If someone having more than you didn’t prevent you from having the same thing, then it would be encouraged that everyone should get as much as they can.
The scarcity and abundance mindset determines how someone views wealth. It is the mindset that determines if someone is going to be successful or not. If someone argues that it is immoral for the 1% to be rich while others suffer, then they argue that there is a fixed amount and not enough for everyone.
When you have someone who is producing in the economy, then everyone is better off. The more producers you have, the wealthier everyone becomes.
This is not found by taking from those who have and giving to those who don’t. The cure is found by getting more producers who make the pie bigger. There is already enough for everyone, and when you have more producers, you have even more abundance for everyone. There is no limit to the amount of wealth, money, and enjoyment you can experience.
Income and Equality
This has gone up many times in the past two decades. This is a problem, but not for the reason that most people think it is. Most will argue that income and equality is a problem because he who has something prevents others from having it. Income and equality is a problem now because of how it is being done. In a producer-driven society, there would be no problem with there being vast differences between the rich and poor. In fact, as the rich gets richer, so do the poor, because of increased standards of living for everyone.
In the last two decades, the Federal Reserve has kept interest rates historically low and under their market value. For a good portion of those two decades, they have been under 2%. This means that the rich and those who properly know how to utilize debt buy apartment buildings and businesses, and put money into the stock market. At the same time, those who have savings, are on fixed incomes, and bought government bonds are getting less on their money. Those who are on the lower end of the spectrum financially tend to have more fixed assets. Those who know how to leverage debt borrow and use it to their advantage. When you have very little risk, you get more speculation and asset bubbles.
If someone borrows at 2% and put it into the stock market, which is getting 8-12%, they are incentivized to borrow and put it into these assets. This is when you get inflation in the assets, and the paper value increases. This makes everything middle-class Americans buy such as groceries and property go up.
You end up with the rich borrowing, speculating, and investing while people on fixed incomes and those who want to retire pay more for their daily purchases and less on their investments.
Government is the Problem, Not the Solution
In a capitalist-driven society, there wouldn’t be this problem, as all the market and interest rates would be set by the market. We don’t have that. We have the government setting interest rates. They say they are doing it to maximize employment and boost the economy, but it’s actually the government that is creating the inequality. When the government artificially creates income and equality, then you have a problem.
Be A Producer
It is your responsibility to maximize your producing potential. When you start a business, get a new customer, and hire a new employee, you are a producer. You can always go out and generate more, because there is infinite abundance.
There is a specific divide in mindsets between scarcity versus abundance, and it determines everything about the way you see the world. If you don’t have what you want and there’s scarcity, then it’s someone else’s fault. If there is abundance and you don’t have what you want, then it’s your own fault.
The evidence is clear that we live in a world of abundance, yet so many people continue to live their lives as if there is scarcity. It’s your responsibility to enjoy and add to abundance.