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Believe It or Not the Poor Are Getting Richer

The rungs on the income ladder are getting closer together for many

By Thomas EgelhoffPublished 6 months ago 3 min read
Graphic by Towfiqu barbhuiya on Unsplash

If the poor are getting richer who’s getting poorer?

It’s an interesting paradox because in order to give something to someone you must first take from someone else.

When I sell a set of my business books someone gives up $20 and I make $20. Most people would say I’m $20 richer, and the customer is $20 poorer.

However, the $20 given up by the customer, by choice, received value in exchange. It wasn’t a one-sided transaction

The person with the new knowledge (my books) might generate many times the $20 he or she invested, and the knowledge received.

Globalization, World Markets, and The Middle Class

The middle class in America is shrinking while poverty around the world is declining.

How is that possible

How can third world countries be making more income while American wages are stagnant?

The number of people living in extreme poverty across the globe has been reduced from 35 percent to 19 percent since 1993.

Violence, childhood mortality, and illiteracy are on a downturn internationally.

Eighty percent of people in the world can read and write.

But What About the American Economy?

Where are we today?

Middle and lower-class wages are treading water at best.

Inflation at 9.1 percent is reducing the buying power of every paycheck.

One hundred twenty-six poverty programs sure haven’t moved the poverty needle very far in the last 60 years.

In some areas of America poverty is worse than ever. Just look at the tent cities on the streets of America’s largest cities.

So why are the poor incomes around the world improving while American incomes remain dormant?

The short answer is globalization and international trade.

We make stuff overseas for people who have risen in the income brackets to a point they can afford to buy our stuff.

Even more importantly with a little computer training they can produce it.

More automation, computers, and other production improvements have reduced the need for warm bodies to do the work in the US.

Basements in houses used to be dug by several men with shovels and wheelbarrows. Today one man can do it quicker with a backhoe.

Carpenters used to saw lumber by hand and nail with hammers. Now both are done in twice the time with electric skill saws and nail guns.

One carpenter can do the work of five in the same amount of time.

Some Final Thoughts on the Poor Getting Richer

As third world countries move up in both income and lifestyle there will be great money-making opportunities in the future.

You might say that huge corporations will benefit — but few others.

Then my response would be to buy a piece of that company and put them to work for you.

No matter how bad things get there are certain things people are always going to buy.

Detergent, toothpaste, cleansers, soap, etc.

The world is changing and those who are unable to change with it are going to continue flirting with the poverty line.

Third world countries are advancing because of that same globalization and technology that is reducing our work force here.

We are stuck in the manufacturing jobs mode that is leaving rather than embracing the technology jobs that are arriving.

My advice to parents has always been to advise your kids to either design robots or repair them. The latter will probably pay more.

No matter where you are on the income ladder — Knowledge is Power.

With supercomputers and technology, the world’s knowledge doubles every 13 months.

Just imagine that. Everything we know doubles in just 13 months. Pretty amazing.

The big takeaway from this article — Learn and earn baby.

I hope you enjoyed reading this and that you’ll support me by subscribing. I want to thank my followers and subscribers. You make writing so much more fun, and I appreciate every single one of you, and your comments and emails. Thank You.


About the Creator

Thomas Egelhoff

Author, Radio Talk Show Host, blogger, YouTuber, Vietnam Vet, half fast guitar player, average cook, all in all a really nice guy. I read all my articles you should too and subscribe. Thanks very much.

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