Recently, there have been numerous reports highlighting the distribution of wealth and income inequality in both America and around the world. The news is far from healthy:
- It is currently estimated that by the year 2016, the richest 1 percent will control more than half of the world’s wealth.
- Even more shocking, the combined wealth of the 80 richest people in the world is the same as that of the bottom 50% of the Earth’s population—totaling 3.5 billion people.
- In America, the wealth inequality gap continues to grow as America’s middle class shrinks. The share of American households in the middle class fell from 56.5 percent in 1979 to only 45.1 percent in 2012. And there is no indication this trend will reverse itself.
Regardless of how you think the problem should be resolved, this is not good news.
Numerous economic studies indicate the significant dangers to society when the wealth gap widens—both economically and for personal well-being. One of the most important factors designating first-world countries from third-world countries is the size of the middle class and opportunity for social mobility. I have seen firsthand the damaging effect of income inequality.
There are solutions to this problem and we need to find them.
But recently, I have begun noticing another unhealthy trend. One that may be related to the widening gap, but more likely, finds its root in the human spirit. It too requires a solution, albeit a much easier one to define.
This equally negative trend is the wealth gap we focus on in our mind and the resulting division we artificially create because of it.
Let me explain what I mean with a short story from this past weekend:
On Sunday, I was spending some time with neighbors. Economically speaking, we live very similar lives in our suburban neighborhood outside Phoenix. At one point, one of the guys struck up a conversation with one of the teenage boys in attendance—the son of another friend. In response to a question, the teenager mentioned the Soccer Club he had begun playing for. This Soccer Club, not too far down the road from us, just happens to be located in one of the wealthiest counties in the country.
My friend’s immediate response to this information was telling, “Oh, so you’re on a team with a bunch of rich kids?” The jealousy contained in his voice was difficult to mask.
His statement, I believe, is indicative of how most of us view wealth: “Those with more are the rich ones, not me.”
I mean, never mind the fact that earlier in the day my friend had to decide which of their two vehicles he would drive to the party. Forget the part that we were enjoying fine food and drink in a comfortable, well-decorated home. Disregard that he had enough money to care for his health needs, was making plans to retire in the near future, and had even saved a bit of money for his child’s college education… in his mind, he was not rich. The “other guys” down the street were the rich ones.
We experience this often in our thinking. We usually compare our financial circumstance to those who have more. And as a result, we rarely consider ourselves wealthy. The world is big and there is always somebody with more. No wonder 55% of millionaires do not consider themselves rich.
We see this also on a macro-level in our society. In our country and around the world, “The 1%” has become a derogatory term describing the wealthiest among us. Subtly, it is used to designate the apparent, insatiable greed of those who already own enough. We use it in conversation to draw a sharp contrast between those who are “rich,” and those of us who most assuredly, are not.
Again, because we compare our financial circumstance to those who have more, we refuse to consider ourselves among the rich. But something interesting happens when we begin to expand our comparisons.
Globally, an estimated 6 billion people live on less than $13,000/year. And nearly half the world’s population, 2.8 billion people, survive on less than $2 a day.
According to the non-profit group Giving What We Can, an annual income of $40,000 places you in the richest 2.0% of the world’s population. An income of $25,000/year puts you in the top 3%.
Even a minimum wage job ($7.25 an hour, 40 hours a week, 52 weeks a year) puts you in the top 8% of all people on the planet in terms of income. Adjusting for actual purchasing power makes little difference in the percentages.
In other words, we are the rich ones. When we begin to expand our worldview beyond those who only have more than us, we quickly discover we are already among the wealthiest in the world today. And in most cases, we are the 1%, globally speaking.
We are already wealthy. And this should change entirely the way we live our lives. (tweet that)
This realization invites us to pursue happiness elsewhere. If I already exist in the top 2% of wage-earners in the world, is reaching the top 1.8% really going to increase my happiness index significantly? Maybe having more money is not the answer, maybe I will need to look elsewhere.
It requires us to rethink contentment. The level of income in our countries is just one economic measurement. In addition to income, average home sizes have nearly tripled in the past 50 years, televisions outnumber people in the average American home, and the average British 10-year-old owns 238 toys but plays with just 12 daily. Despite our material accumulation, discontent fuels more desire, more shopping, and more debt. If all that we already own has not satisfied the deepest longings of our heart by now, they probably never will.
Our wealth calls us to embrace a higher standard. Most of the “us vs. them” conversations concerning wealth focus on how those with more should spend their money differently—whether by governmental authority or by personal initiative. But, if “we” became “they,” shouldn’t we try to live by the same standard we called them to uphold?
It opens the opportunity for greater generosity in our lives today. The thinking runs deep in many of our hearts: Once I make more money, I will become more generous. But the research indicates otherwise. We are already wealthy—most of us ranking in the top 2% globally. The time for generosity is now. And maybe the greatest benefit of generosity is the realization that we already have enough.
Are you the wealthiest human being in the world? Absolutely not (I mean, unless you are reading Bill). But that doesn’t mean “rich” is some far off concept you will never attain. In reality, most of us have already achieved it. And this ought to change both how we live and define wealth.
Trou says
Thank you for this wonderful post!
Natalie says
This post couldn’t have found me at a better time. We are about to embark on a minimal adventure: taking our double-income family with two kids in full-time daycare down to a single-income family with my husband staying at home. We have felt like we are hitting our heads against the wall trying to strive for something that isn’t all that important, when in reality, what is important (seeing our kids grow and being a part of it) is passing us by.
I am sharing your post with everyone I know!
Jacqueline says
i find the ones who never struggle moan the most, never satisfied, they say those that don,t have much are far happier, i find thats not true, its hard making ends meet, i don,t like being conditioned and not to give in and avoid the pressure is so hard to keep up with trends etc, i feel a minority, the smug people are the ones that i really have no time for, they make me angry more than rich people, they have never had a single struggle and have no concept of going without food and yet think they are hard done by if they can,t have a particular meal of there choice or a special diet etc etc, i have just taken a pay loss and to be honest i don,t have the stress, i don,t have money to waste which is what i was doing for convenience sake, when we and my neighbour had little money we often shared food and clothes, a pair of wellies passed down to all 5 kids, we are still good friends and it strengthened our friendship, no selfishness and power struggles, and we were grateful for each other and treats, the bible says when in plenty go and help someone else and so no one is without then, love and hugs Jacqueline xxxxxxx
Jeff Meister says
Joshua, What a powerful post… you nailed it! It really puts it into perspective. We can stand on any street corner and look in any direction and see someone who has less, yet we’re not satisfied. Thanks for this post… Jeff
Judy says
Joshua—I really enjoyed reading this post! This may be one of your best articles! It is written so well…I have these same thoughts, but I am amazed at how you manage to articulate them. FROM HEAD TO PEN!!! —Thank you for being here. I am always aware of the suffering and I believe it is God-inspired. Like Susan said, I hit my pillow at night knowing that I am blessed beyond measure. Just to be safe, warm and fed is something that should never be taken for-granted. Daily, I pray for law enforcement to “catch the bad guys” in hopes that children/animals need never suffer. Then I ask God to send His son soon, because I know that as long as this world turns…there will be suffering. It’s so easy to look at the guy with the fancy car or something and say “He must be rich!” —And he may be! But in reality, he’s probably in debt debt debt! Thanks for this reminder. I am rich! Not only because I’m a King’s kid…but because compared to most of the world, I make a lot of money! :) Spoiled rotten, 4 sure.
Helena says
I’m so glad you wrote about this. I have noticed the “jealous” comments more and more and even my kids, who have all they need, will refer to rich people as evil and greedy. its a constant work to review and teach. I feel blessed for all I receive daily, for the warm bed in a safe place, for the food on our table every day, every meal, for a a healthy family and access to care if we need it. Daily struggles can make us lose perspective of all the wealth we live in and I found that it’s only through compassion and staying connected to the divine that we will understand the wealth we receive through giving to those less fortunate than us. I always enjoy your writing Josh.
Phil Pogson says
My kids go to a private school, I love nothing better than dropping them to school (when I have a day off) in the old car and wearing my daggy house clothes – rather amusing pulling up next to the expensive European cars full over over-groomed pretenders…..keeps the kids a bit humble and I remind them each time that their school fees are paid in cash not from a bank loan or a credit card.
A persons life consists not of the things that they own
Rea says
I’ve noticed the same thing with my oldest. Just last week he was talking about how rich people are greedy and don’t care for other people. I stopped him and said “Look, that’s just as much of a stereotype as saying that all poor people are lazy. People are people. There are good rich people and there are good poor people.”
We don’t have a lot of money. In terms of ‘stuff’ we have to really watch every dime and often go without those ‘must have’ items. (we get teased for still having ‘dumb phones’) And yet, when I consider what it means to be truly poor…we have SO MUCH. We own a PIANO (inherited from my grandmother)…what an incredible luxury! I have machines that wash and dry my clothes and dishes.
Tony W says
Walmart Gives 500,000 Workers A Raise ;-)
http://www.huffingtonpost.com/2015/02/19/walmart-wage-raise_n_6712316.html
Judy says
Go Walmart! I hope other retailers do the same. :)
Tonya@Budget and the Beach says
Another great article! Although in complete honestly I would like to earn more to be more comfortable and stress free financially, I also do “feel” rich..rich with friends, health, family, a fun life, experiences, etc.
Stacy B says
I think sometimes we believe that all in the U.S. we are all wealthy and poverty happens somewhere else. I once read an article with my students that stated that even the poorest of American citizens live better than kings in the Middle Ages–this assumes there is running water and heat in someone’s home making them better off than a drafty castle. Sadly, water gets shut off and so does electricity when you can’t pay it. So perhaps the statistics listed are high–but who cares the poverty is real and likely very close to you and you don’t even realize it. Have gratitude because your grass is always greener than somebody else and those jars of peanut butter you donate to your kid’s school–somebody needs those–it is the little acts that can be essential.
https://awellstockedlife.wordpress.com/2015/02/23/the-legacy-of-owning-stuff-be-careful-what-you-dont-purchase/
Eve Johnston says
Exactly!
Christina @ Embracing Simple says
Thank you for touching on this subject! I was once someone who didn’t fully appreciate all that I had, and wasn’t grateful for how well off I actually was compared to most around the world. Since learning how to be more content in regards to my possessions and what I truly “need” to live a happy and fulfilled life, I’ve never been happier!
I have a husband who adores me, a beautiful home near all our family, food on the table every night, and a daughter that brings light to my life. What more could one want? I’m living a rich life in the biggest way imaginable :)