The problem, I think, with how income inequality is viewed is that they look at it wrong.
If two people invest in the same investment that renders, say, a 10% return they're both better off regardless of what amount originally invested.
But, human nature being what it is (wretched creatures we are), we focus on the other guy.
The guy who invested $10 000 made $100. A guy who invested $1 million made $100 000.
Presto! Income inequality!
Wrong way to look at things.
The right way is both investors are better off. Conversely, in a down market the 'rich' guy loses more total dollars but the percentage is the same.
Percentage is the great equalizer.
If two people invest in the same investment that renders, say, a 10% return they're both better off regardless of what amount originally invested.
But, human nature being what it is (wretched creatures we are), we focus on the other guy.
The guy who invested $10 000 made $100. A guy who invested $1 million made $100 000.
Presto! Income inequality!
Wrong way to look at things.
The right way is both investors are better off. Conversely, in a down market the 'rich' guy loses more total dollars but the percentage is the same.
Percentage is the great equalizer.
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