Income inequality is a false precept! I know the politicians, namely the Democrats, pontificate about “income inequality” in an effort to arouse the electorate, but check this out.
“At least 268 of the 534 current members of Congress had an average net worth of $1 million or more in 2012, which amounts to just over half. The congressional median net worth was $1,008,767.”
The top 10 richest members of Congress; Average Net Worth (rounded to the nearest million):
1. Darrell Issa (R-Calif); $464 million
2. Mark Warner (D-Va.); $257 million
3. Jared Polis (D-Colo.); $198 million
4. John K. Delaney (D-Md.); $155 million
5. Michael McCaul (R-Texas); $143 million
6. Scott Peters (D-Calif.); $112 million
7. Richard Blumenthal (D-Conn.); $103 million
8. Jay Rockefeller (D-W.Va.); $101 million
9. Vernon Buchanan (R-Fla.); $89 million
10. Nancy Pelosi (D-Calif.); $88 million
(Note: Taken from Slate.com article entitled “Most Members of Congress are Millionaires” by Katie Long)
So don’t be fooled! The reason that income inequality is a false precept is that there is no equality in sacrifice or effort. If you bust your hump, sacrifice instant gratification in pursuit of your goal and your income increases because of that, should someone who did not do those things have an income equal to yours? Certainly not!
Income inequality should be rephrased to “Opportunity Inequality”. That gap can be closed through education and information. So instead of politicians advocating against wealthy people, they should work to promote “Opportunity Equality” or teach us how they created their wealth.
Did you know that there are 85 people who are as wealthy as half the WORLD? If you don’t believe, read for yourself at http://huff.to/1dUFcD4. But I say, DON’T HATE…EMULATE! The reason that these individuals are wealthy is because they are ASSET RICH…remember that term from Lesson #1? Instead of envying them, we need to follow their model. Many of them achieved wealth through business, some through real estate, some through investments, and some were beneficiaries of a prior generation. You know what makes them different from you? NOTHING!
The first three lessons were dedicated to driving home this simple formula (Assets – Liabilities = Net Worth). It is the same, exact formula that businesses use to determine their value. And why not use this?…YOU ARE THE CEO OF YOUR FAMILY! Think about that for a moment. I bet you didn’t realize that, did you? In the days to come, I will teach you how to put together your own personal financial statements. But this lesson is to gauge your understanding of this formula. Your net worth can be either “positive” or “negative”. So what is yours?
Important terms from this lesson:
- Positive Net Worth – Your ASSETS are greater than your LIABILITIES.
- Negative Net Worth – Your LIABILITIES are greater than your ASSETS.
- Income inequality – The false precept that suggests that income should be equal.
- Opportunity inequality – The precept that suggests that opportunities are unequal.
Action Step: What is your NET WORTH?
Please print out and complete the Net Worth Worksheet. Short worksheet with 4 short steps.
Click the link to download the Net Worth Worksheet – http://bit.ly/1jt8uej
Education and Action 