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.
Raphael says
Thanks a lot for this! You have just confirmed something I feel but never succeeded to put in words. This will change my perception of many things i n the future.
Clare Speer says
Very timely post – such a gap in incomes – especially in this country! Thanks for the informative post!
Abhinav says
Great Article. I would like to point a quote by Mahatma Gandhi which I think is very relevant in this context. He once said –
“I will give you a talisman. Whenever you are in doubt, or when the self becomes too much with you, apply the following test. Recall the face of the poorest and the weakest man [woman] whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him [her]. Will he [she] gain anything by it? Will it restore him [her] to a control over his [her] own life and destiny? In other words, will it lead to swaraj [freedom] for the hungry and spiritually starving millions? Then you will find your doubts and your self melt away.”
Kathy @ SMART Living 365.com says
Definitely a good perspective on the fact that most of us are far richer and more fortunate than we tend to recognize. If we are always looking forward to more, more, more we will never feel happy or satisfied regardless of how much we make or how much money we have stored away. As the saying goes, the trouble with winning the rat race is that you are still a rat. Far better to realize how rich we are in this minute and with gratitude, count all the benefits in our existing lives.
Green Girl says
I always ask “how much money does one person really need”? Once you pass meeting basic needs like clothing, shelter, food, safety, etc… more money usually does not mean more happiness, especially if it takes over your life to the point of reduced health and happiness. I also find it interesting that 2/3rds of Americans are overweight, in one of the richest countries in the world. Crazy.
teabag says
⅔ of americans are not overweight because they have too much money; the less money americans have, the more likely they are to be fat. that’s because the most fattening and toxic food is the cheapest, so the poorest people are the fattest. even the people i see waiting in lines in soup kitchens or food pantries (people who go hungry, or would if they weren’t being given food) are fatter than higher-income people. excess income isn’t the problem.
Mahdi says
But being rich is all relative, I mean it’s different in different countries. I think the thing that matters is standard of living.
E.g: In my country (Iran) we can live super comfortablely with just 5000 bucks a month whereas in USA you may need 15000 bucks a month to live that way. However, our salaries compared to USA citizens ones are lower.
Sara says
I couldn’t love this any more. Thank you, for being a voice of sanity in an insane world.
Melissa says
I’ve never thought about this before but you are so spot on. I can’t believe I’ve never thought of it this way. Money is something I work hard for, but I try hard to not make it something that I put a lot of importance on (even though I run a frugal blog it seems a little silly). But I save what I can, buy what I need, and make sure that I have enough to be able to enjoy life. I’ve never considered myself rich – bit I think now I do. I’m able to enjoy life with what I have, and like you said that’s more than a lot of people can say. I’m rich.
joe says
contentment can disappear in a flash. my surroundings blur the amazing wealth that God has blessed me with. thanks for the reminder to be content in plenty and in want. discontentment brews up such ugly bitter sides on myself that i hate. i tend to drop out of competition so that i stop competing with others around me. i bite my tongue when i feel like complaining, until i can rephrase it and truly believe that it’s a positive thing. of course we’re blessed with many many things in the US, and that’s what makes reaching out to others that much more important. i find contentment easier when i’m outside myself and not thinking about and worrying about all my stuff. thanks for sharing. i love your blog. it’s both beautiful and insightful. joe
Jill says
This is so true. Most people, particularly in our country, have no idea how blessed we truly are. I have only recently begun to realize that it’s not more money that I need to make my happy, but more gratitude. I wish I had known that years ago, but at least I know it now, and can teach my daughter.
Capy says
Like your comment.
It is our responsability to raise our children from a very young age to be generous, selfishless and not to see making money as the only way to be happy on this Earth… Teach them careness and sharing .!