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The detrimental effects in unfair wealth distribution. Division and inequality.

Updated on April 28, 2013

Making money matters.

Everyone, everywhere is looking for ways to make money because in most cases their basic income is not sufficient enough and they then feel like they need to persue other avenues for extra income streams. Cash and currency are so very important to the way we live our lives, that one can literally not afford to be without some kind of financial injection. Where the regular cash flow originates from are as varied as the denominations attributed to them, this is where for the most part, the system for the masses, seems to fail.

A decent and fair wage, equal to the time and effort required to fulfil it, would appear to be the logical way to compensate someone for their efforts. However when skill, talent and entertainment is involved with a career, it is still more difficult to correlate and judge how one should be paid. As opinion, the market and industry differs also does the wage divide. There is no doubt the gap is increasing and that the ever increasing rich poor divide is detrimental to all, even the super rich. Lets consider some facts and figures, and explore the reasons why.

By hook or by crook.

Over 90% of the worlds wealth belongs to less then 10% of the worlds population and the rich/poor divide is widening rapidly further. The reputation of capitalism and globalization has taken another blow since the 2009 recession.

Wealth and crime are intrinsically linked, this is more obvious then ever when we consider crime data and reports in poorer countries and the wealthier ones. We can also comepare 'rich' and 'poor' areas in any country and see that those most affected by crime are not the millionaires in the suburbs.

This does not however mean that those with money are not affected by crime, indeed they are, especially when they are away from their properties, either on holiday or staying in a second home.

The problem with the pyramid system.

We are warned against pyramid schemes all the time, we are told that they are not financially or economically viable, why then does the whole capitalist system primarily work on this precept?

You get lots of people at the bottom of the ladder doing all the harder, manual labour for many hours and hardly any money, next up you get fewer people doing less work but getting paid more and so on and so forth until you get the head honcho doing the least amount of work, in most respects, arguably putting in the least amount of hours and yet getting all the awards and privileges.

Company bosses argue that they put all the hard work in the beginning and that they deserve the rewards now and they employ all these people, this is a good argument after all they had the brains and gusto to put it together in the first place and therefore deserve the harvest of their intellectual crop. Is it not however that in fact all these people are making money for them and surely higher wadges would only be fair?

I am not going to tar everyone with the same brush so to speak, as some bosses pay incredibly well and are comfortable enough and do not wish to fleece their work force as they appreciate them and respect them, and understand that both parties gain mutually from the venture.

Exploitation or euntreprenurial.

Brand power is big business but these are only backed up by there own advertising. Just because its a big firm does not mean its a better product or service. Also don't be fooled into thinking that just because a product or service costs more the people behind it are payed more, in most cases the exact opposite is true.

If you want to support a fairer and more equal society then plump for supporting local or small up and coming businesses and shun the big guns. Newer companies are much keener to please and will take greater pride in what they do, generally.

There are of course exceptions to the rule and if you find a company that still holds on to it's core values and you respect what they stand for then by all means, keep showing them your support, they may be a dying breed.

Where does the money go?

During the recession, it was banded around the concept that we were all a little short of money, but surely we all can't be short of money, I mean where did it all go? Did it all just evaporate? Did it just get misplaced or did it vanish?

Money matters are increasingly more difficult to comprehend and unless the systems fundamentally revolutionizes, because the way currency is distributed is unfair, things are going to get a whole lot worse for everyone.

With more cuts to jobs at the bottom of the ladder and huge bonuses still being paid out for ridiculous amounts of money at the top. The government and society at large really need to look at how we all live together in this world and how will would all benefit, surely?

Is this the future consequences of division and inequality?

Do you think the current economic system....

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    • katiem2 profile image


      7 years ago from I'm outta here

      Very powerful stuff on the detrimental effects of unfair wealth distribution in all countries. It's a mess, thanks for covering this troubling condition as it is on the rise. :) Katie

    • profile image


      7 years ago

      When I read your title - I knew I was going to like this hub and you are absolutely correct. The working world is a pyramid where only the top benefits. Having spent most of my career in the middle of the pyramid, I have to appreciate the hard work that goes in at the bottom and filter the garbage from the top. I am not sure why the top disregards the bottom as it is the bottom that keeps the top afloat. Nonetheless, I am aware of this business model and agree it is difficult to measure skill and performance against social and political so I just be the best I can be and do the best I can do...very enjoyable hub...thanks

    • CHRIS57 profile image


      7 years ago from Northern Germany

      Good topic, good essay.

      Wealth distribution is well measured with the Gini Index of inequality. In the US during the Great Depression that index showed the same high 40% as it shows now a days, which coincidence. That figure is quite bad, shows high inequality at the same level with Russia and China. Only few countries like South Africa or Brazil have a worse distribution of wealth.

      I live in Germany (Gini 29%) and my job took me last week to Danmark (Gini 25%). I experienced a difference in attitude, in living conditions, in concentration on mutual interests between those countries.

      In my view both economies have a fair distribution of wealth and income, but the 4% different Gini is shimmering through.

      What do we have to expect of economies with higher levels of inequality? More crime, more selfishness, more lack of solidarity?

      I am not an expert sociologist, but my globetrotting experience tells me that there definetely exist correlations between inequality and crime rate.

      I would try the statement that fair and mutually agreed distribution of wealth and income in a given economy prevents from crime and bad sides of life.

    • CMHypno profile image


      7 years ago from Other Side of the Sun

      It was interesting that in the last decade of a Labour (socialist) government in the UK, that the wealth gap between the rich and poor grew wider all the time. So much for socialism! Interesting hub wrenfrost.

    • profile image

      Howard Schneider 

      7 years ago from Parsippany, New Jersey

      Great Hub. The disparity between rich and poor has been growing exponentially the past decade in the U.S. The conservatives have been successful in passing tax cuts that overwhelmingly benefit the rich. Now they are attacking our unions. They do not understand that concentrating all the wealth in the hands of a few will leave no money for the lower classes to spend. Thus the golden goose disappears. Henry Ford knew this early in the 20th century so he paid his workers well. Thank you for your Hub. You analyzed the situation very well.

    • Trsmd profile image


      7 years ago from India

      I liked this page, voted up and shared in my facebook..


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