Can someone please explain to me why 1% of the population makes 96% of the total income in the world?

Question

If what my school textbook tells me is true- then this system is really unfair! Democracy puts power in the hands of the few? I thought all men were created equal!...I guess I'll have to rethink that...What is the reasoning behind this system? Can anyone possibly expain it so I understand?

Answer 1

They work hard to get to the top. They don't whine and complain, expecting people to give them money. Not difficult to understand.

Answer 2

Your stats are off, but income (and wealth) is far from equitable and getting less so all the time.

Some might say that the rich earn their income by creating wealth, jobs, etc. and that they are paid, like everyone, as per what they produce. This is crap.... who gets to measure their value, who sets the rules as to what that value is etc. Why is an executive today worth 1000 or more times than their lowest paid employee while in the 1950's 1960s the same position only offered 10 or 20 times more income?

With all that said, the average worker is doing better than his predecessor in the 50's.... but the bosses are doing much, much much better. Government is supposed to make sure that rules are set, values are pursued and average people have a voice. Today every government leader of any stature is a millionaire (at least)... and they look after their own.

Wanna fix it... vote early and vote often. Get into the political parties that exist, create new ones, get involved, make some noise and make politicians realize that people want them to do what's best for them, not the elites. Until more than 40% of the population bothers, they ain't gonna listen.

Peace

Answer 3

Statistics can prove anything you know. Your statistics don't indicate that 100%, or very nearly, of the people on the earth are at least subsisting somehow. The key ingredient to life, is not money. It is food and shelter. Much of the world works to provide themselves with that.

If you are saying some people make too much money, that is an opinion; however, the great wealth of some often provides enough for living expenses for many others. I'm not making excuses, just throwing out some ideas to think about before you think taking all of Donald Trump's money away and distributing would be better than letting The Donald make money and employ thousands. Bill Gates, same. There are 5 billion people on earth, if we took 5 billion from Bill and Donald and gave a dollar to each person, how long would it last? And thousands and thousands of the rich men's employees would not be feeding their families this week, next week,and for a lifetime.

Answer 4

Yes, I've read those statistics a few times before. It's like that simply because the system is broken. Those in control will do anything to stay in control. Change becomes an illusion fed to the masses in the form of "elections" and other facades in order to shut them up. Sad, eh?

Answer 5

they know something we dont. they use the law of attraction. they use positive thinking. its complicated, but simple. easy to understand, hard to do. watch The Secret. google it up, under videos, the secret, chapter 1.
but its more than that. people at the bottom, poor, are too ignorant to move up. they buy stuff, and never save or invest money. the middle class buy liabilities, and buy cars and boats and other stuff. the rich buy businesses, invest in stocks or bonds, or mutual funds, save money, and repeat the process. wealth is not a mystery, its a formula. who cares if 1% or 5% owns 95% of the worlds income? the only thing we can do is focus on our own money earning potential. but unless you are born rich, are incredibly smart, or win the lottery, you have to work yourself really hard. if being rich was so easy, why isnt eveyone doing it? there is more than enough money to go around. the us govt will print more if needed. im not rich. i know what it takes. am i willing to do what it takes?

Answer 6

If that 1% created 98% of the value in the world, but only kept 96% of it, would you consider that to be fair? I have some doubts about your statistics; the income distribution is indeed lopsided, but I doubt that it is as lopsided as that. Michael Eisner earned a billion dollars upgrading Disney; he increased the value to the shareholders by tens of billions. Was Eisner overpaid?

Answer 7

I don't think that statement is true. Could you provide a link to it?

If that was true, most of the world's population would be starving and on the streets.

Answer 8

Because life sucks!