In a speech at the end of last year, President Obama called pay inequality “the defining challenge of our time.”
The wealthiest Americans have increased their incomes many fold over the working class over the past three decades. Under President Obama’s leadership, the gap between the rich an poor has grown larger than ever.
In 2015, the highest earning 10% took home more than 30% of gross income in 1982. In 2012, that same group received only 15%, according to University of California at Berkeley economist Emmanuel Saez.
Republicans and democrats can both agree. Pay inequality is growing. The disagreement is in the cause. Some believe it is due to greedy corporations. Some state that is crony capitalism. Depending on the cause, people have varied solutions.
Many republicans agree in limiting crony capitalism put refuse to put laws on the economic system. A free market is not a perfect system because it relies on free will. It will not always output positive results.
On the contrary, democrats believe that government intervention in the market can yield better results. The trouble is when interference causes uncertainty in the markets. After all, economic freedom is the magnet that has brought millions of immigrants to America.
Regardless of the solution, I wish America would not focus on demonizing profit.
Income is an outcome – a reward for how hard people work and how clever they are. If some work harder or smarter than others, they should earn more. The merit system is what drives capitalism.
Sure, crony capitalism and unfair labor should be halted.
Going from rags to riches is the American dream. The best way to have revenge on the rich is to become one of them. I doubt any American believes they can become rich through the government.
Americans should focus on opportunity rather than inequality.
A great article on this subject on Entrepreneur.com http://www.entrepreneur.com/article/232397