BY RUSSELL TURNER
INCOME MOBILITY
I guess it is everyone’s fantasy to be independently wealthy and not have to worry about paying for the things we want or need. I believe that a person is wasting their time if they think playing the lottery everyday or spending all of their extra money at the local casino plugging the slot machines will make them rich. Some people in our nation claim that the reason we are so successful is because of all of the natural resources that our country has. While it is true that we do have abundant natural resources in our country, other countries also have vast natural resources but are poor. One example is Venezuela; that nation has vast oil reserves, but its’ people live in absolute poverty. Since the price of oil has dropped to rock bottom levels the Venezuelan government has had to declare every single Friday a holiday because they can’t afford to keep the lights on. Natural resources are a huge help in making a nation rich, but they are not the most important item in the equation.
People from across the globe have come to America (legally or illegally) because of the American dream. The idea of the American dream is nothing new; many people call this concept income mobility. I have found that there are some simple contrasts between poor and rich nations. Wealthy nations have a culture that values hard work, knowledge, productivity, innovation, risk-taking, saving, and self-reliance. One of the biggest factors is working hard and saving some of your money. Sadly many Americans have never been taught the importance of saving, even if it is only a small amount each month. Wealthy nations have much better institutions. The rule of law is strong and private property rights are strong. Corruption is limited and regulation is sensible. Taxation is reasonable and efficient. I have noticed some cities in our nation will attract business and their citizens will become prosperous while others stagnate. The reason is simple; if the people of a city will not demand accountability of their elected leaders, and are willing to accept a corrupt government, it will drive away investors. And as capital is one of the critical components of economic growth, choking off external investment suffocates an economy.
In America we were founded upon the principle of equality, we were never intended to have an elite ruling class. If someone develops skills, works hard, and takes risks, they’ve got a good chance of moving up the socioeconomic food chain. The factors that I have listed are starting to disappear in the US. For several decades we have created a culture that values instant gratification, consumer debt, and government handouts. Even our government institutions pass new rules every day governing everything from what you can/cannot do and are willing to enforce it with a gun. The system is degrading to benefit the establishment and is rigged against the individual. The government policy of lowering the interest rate for the past 10 years to bail out large banks and the federal government has severely impacted retirees and responsible savers. According to a Pew Research study the Middle Class no longer is the largest segment of the US population. . If we Americans don’t relearn the concepts of income mobility it will severely impact our long-term prosperity and wealth.
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