It may seem unlikely in principle that one individual could really generate so much more wealth than another. The key to this mystery is to revisit that question, are they really worth 100 of us? Would a basketball team trade one of their players for 100 random people? What would Apple’s next product look like if you replaced Steve Jobs with a committee of 100 random people?6 These things don’t scale linearly. Perhaps the CEO or the professional athlete has only ten times (whatever that means) the skill and determination of an ordinary person. But it makes all the difference that it’s concentrated in one individual.
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The people most likely to grasp that wealth can be created are the ones who are good at making things, the craftsmen. Their hand-made objects become store-bought ones. But with the rise of industrialization there are fewer and fewer craftsmen. One of the biggest remaining groups is computer programmers.
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On the contrary, I believe it doesn't make much sense to say that one man is worth more than another. One man can be stronger than another but less wise. Or more educated but not so brave. Or more generous but also more stupid. So his value depends on what you want from him; a man can be very good at his job, and worthless if you set him to do some other job.
The top 1% holds nearly half of the financial wealth, the greatest concentration of wealth of any industrialized nation, more concentrated than at any time since the Depression. In 1980, on average, CEOs earned 42 times the salary of the average worker, and these days they earn about 476 times that salary. Since 1980, the rich have been getting richer fast and furiously and hard-working people in the middle are sliding down the greasy slope who never imagined this could happen to them. The concentration of wealth and power in the hands of a few is the death knell of democracy. No republic in the history of humankind has survived this.
Let's bear in mind that the chances to multiply wealth are unlimited. All people can become rich. There is an error in our understandings - that all people cannot become equally rich. Wealth can not exist where the people are busy with mutual cheating, have no time for creating values and wealth. It is remarkable that we can find the greatest number of wealthy tradesmen and a population on a high standard of living in countries with a high level of business morality. On the other hand, we can find poor tradesmen and entrepreneurs and an impoverished population in countries with a low standard of business morality. This is natural because these people concentrate on cheating one another instead of trying to create value.
We are granting you the profit share not because we feel a need to give money to the people just out of the goodness of the heart. No, we are aiming at other goals by this step. By this measure we want to reach a further decrease of production costs. We want to reach the situation that the shoes are cheaper and workers earn even more. We think that our products are still too expensive and worker's salary too low.
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Today, while hundreds of thousands of bright young people cannot afford to go to college and millions are struggling with high levels of student debt, the top 1 percent owns more wealth than the bottom 92 percent. Today, while CEOs of major corporations make over 300 times what their average workers earn, thousands of veterans sleep out on the street and 20 percent of senior citizens are trying to survive on a paltry $13,500 income or less. For 40 years, under Democratic and Republican administrations, we have seen a massive redistribution of wealth and income from the working class of this country to the top one percent. In fact, if the distribution of income remained what it was 40 years ago the average household in America would have about $11,000 more in income today. Do you want to know why the American people are angry? Today, despite an explosion in technology and worker productivity, the average worker has seen his/her income go up by just 5 cents an hour over the last 43 years after adjusting for inflation. And, if we don’t turn the economy around, economists predict that the younger generation will have an even a lower standard of living than their parents. This is not acceptable to me. We need an economy that expands the middle class and reduces poverty and not one that makes the very rich much richer.
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