Disparity of Wealth

The United States has the largest disparity of ownership and income; more than any other developed country. We have the largest gap between rich and poor. To understand this more clearly, please watch this video:

Distribution of Wealth video

On the surface, it's pretty straight forward to understand. Most people have little income or wealth and a few have unimaginable wealth that continues to grow. What may not be as obvious is that there are severe dangers associated with this growing disparity of wealth. For example, as poverty rises, so does violent crime. Children grow up without the education needed to participate in an increasingly complex world. Little by little, the foundation of our society starts to crack and crumble. At some point, even the wealthy put their future at risk. As fewer people can afford to shop at the businesses owned by the wealthy, their sales lag. As more people find themselves unable to participate, the economy itself becomes unstable and prone to collapse. Anyone who has ever played the game of Monopoly has experienced this. What happens when one player essentially owns everything? Game over. We are heading in that direction and greater financial equality is urgently needed.

So how did we get into this situation? There are a small number of people with unusual financial acumen. These people understand business. They pay attention to fundamentals and invest their money wisely. Simply put, they are good at this stuff. But most people have never received the education or experience needed to succeed in business. That goes for college graduates as much as it does high school dropouts. Even fewer people have the amount of money that's needed to participate. Industries have continued to consolidate and a growing list are dominated by businesses that operate on a massive scale. The cost of entry continues to rise. There are niche businesses that give a small business owner an opportunity to serve a very specific customer that is not financially interesting to the big guys. But, increasingly, business is conducted by very wealthy investors who effectively lock out the rest of us. For example, big stores prevent new products from getting to market. A small food company may have a healthier, better tasting and less expensive product but it will never see the light of day because small manufacturers can't afford to buy shelf space in the supermarket. We want to make it possible for newcomers to innovate. No product deserves to be crowned king forever just because the company selling it can pay to make sure that happens. The wealthy are part of a club that controls the majority of business and wealth and you and I are not part of it. Fortunately, with Equanomics, we have an opportunity to join together and create a place for ourselves before it is too late.