Wealth Vs Wealth

987 Words 4 Pages
In a society based on voluntary trade, people grow rich by producing goods and convincing others to purchase their products over the alternatives available. Individuals differ in many ways including dedication, ambition, and ingenuity, but the ability to earn wealth encourages them to create more inventive products. In a market-oriented economy, people move between classes contingent on their ability to satiate the desires of others; thus, an economic hierarchy is created, and those who better satisfy consumers wants will make more money. By nature, consumers purchase goods from suppliers who outperformed their competitors. Hence, for Bill Gates or any other producer to grow rich he or she must produce and sell something that people judge to …show more content…
The U.S. Census Bureau classified more than 37 million Americans as poor. To the average American, the word “poverty” implies significant material hardship and deprivation. Politicians, activists, and the mainstream media reinforce this image by asserting that 35 million Americans live in chronic material deprivation and are unable to obtain “the basic material necessities of life. However, the overwhelming majority of poor people in the United States have cable television and air conditioning. On average, poor people who live in apartments or houses are not crowded and often have more living space than the average person living in European countries, such as France, Italy or England. In reality, “The poorest Americans today live a better life than all but the richest persons a hundred years ago” . A true picture of deprivation would measure consumption: the amount a household spends on rent, vehicles, food and other items, rather than income: how much a household admits earning. Incomes are unreliable measurements of poverty because people are reluctant to reveal how much they make. Moreover, they are less reticent when asked if they have television sets, cars and air conditioning, or if they eat out and go to movies. Poverty figures are overstated, and so is income inequality. Dr. Bruce D. Meyer claimed, “When adjusted for these flaws, the level of poverty is much lower. Instead of 15 percent, it is only 4 percent to 5 percent”. The average poor person, as defined by the government, has a living standard far higher than the public imagines: lacking nutritious food, adequate warm housing, and clothing for a

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