tag:blogger.com,1999:blog-8304928500646903522.post7642246599012762034..comments2024-03-28T18:32:05.933-04:00Comments on bensozia: We Are Helping the PoorJohnhttp://www.blogger.com/profile/01037215533094998996noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8304928500646903522.post-894506247149587762019-12-30T17:32:16.682-05:002019-12-30T17:32:16.682-05:00Income Growth is a wildly relative thing.
Having ...Income Growth is a wildly relative thing.<br /><br />Having your income grow by 50% or 75% sounds great, but if your income is tiny to begin with, the extra percentage is also tiny.<br /><br />Income growth at the lowest levels of wealth is totally different than than the same percentage at higher levels of wealth.<br /><br />Someone going from $20,000 a year to $30,000 a year doesn't compare to someone going from $200,000 a year to $300,000 - the poorer individual makes only an extra $10,000 while the rich individual makes a whopping $100,000 more. The richer individual sees ten times as much actual money added to their income, for no other reason than they <b>started</b> with ten times as much.<br /><br />Income also doesn't exist in a vacuum. Raw growth is meaningless - you also have to consider growth compared to inflation, rising cost of living, et cetera. If your income grows by +100%, but your necessary spending also grows by +100%, you're still exactly as poor as you were previously.<br /><br />And again, your overall level of income comes into play here. An individual who made $10,000 in 1980 and now makes $17,500 in 2020 is going to have also seen their cost of living rise by similar rates. But someone who made $100,000 in 1980 and makes $175,000 in 2020 is not going to have nearly the same increase in cost of living, in terms of a percentage of their income.<br /><br />It's absolutely monstrous that the highest percentage gains in income have been seen among the richest individuals. They should be seeing the lowest percentages.G. Verlorennoreply@blogger.com