The wealth gap
In America and around the world, the accumulation of money using technology is making significant changes. For example, technology makes it possible for fewer people to earn substantially more money in a fraction of the time it took previously. We will look at why technology and money go hand in hand to create a growing gap between the rich and poor.
Why is the gap so big?
There are two opposing views we all hear and know about why the gap is so big. I will summarize and give my opinions but hang with me, and we will get to the point quickly. I believe the liberals who scream for socialism, higher takes, free everything, and think the answer is to tax the rich are not worthy of discussion. Take that out of the arena of logic and common sense. It never worked before and never will.
- Those who call for that would themselves never follow or live their own lives under what they say is best for others.
- It is the same as any other communist country where the standards for the leaders at the top and the standards for those they rule at the very bottom are so different you would think they are other species.
- The millions of lives that have died from starvation and malnutrition around this world are staggering to comprehend, all the while the few in charge live like gods.
- If you create a system that wants to guarantee equality of outcome instead of equal opportunity, that system destroys freedom and any incentive for people to learn, grow, and contribute to society
- It is a breeding ground for tyranny.
On the other side of the argument.
This growing population of people who live in a land of abundance and opportunity and yet find themselves in poverty is to have a smaller government, lower taxes, and give more power and control to the people.
- While I wholeheartedly agree with those principles, this will not fix this problem either. And, even if it did, why would those who have seized power and control give it back?
- Part of the poverty issue is ignorance and lack of quality education controlled by people who do not want to educate but indoctrinate our kids. However, America has the system in place and created a country where your ability, hard work, talent, and willingness to learn are available for anyone.
- Unfortunately, that system has been overrun with communism and a Marxist ideology that goes against the very principles of a free society.
- There is no denying that capitalism has worked and benefited the entire nation because the data is clear. Even the poor of this country are better off than many middle and upper-class in other countries. All incomes have improved through the freedom to work and invest without being controlled by the government. Yet this still does not tell us how the gap is getting wider between the lower-income and the top incomes.
What is causing this wealth gap?
And what is causing it to happen with increasing speed to the point that the nine wealthiest people in the world combined have more money than four billion of the lowest income people in the world? Well, we know that there have always been gaps as far back as societies existed. Some are more gifted, talented, smart, and so on. As a result, they are very successful, and saying that is wrong is hypocritical because most people who complain benefit from the same capitalist system. So even though there are no doubt advantages to having some or all of those qualities in abundance, something else is happening here.
Is it Just About Money?
The main reason this wealth gap is getting to unimaginable proportions is something called:
The Law of Accelerated Returns.
This concept is not something someone just figured out, yet most people have probably never heard of it. However, technology has created enormous opportunities for people to get very rich in short periods. As populations of people increased on the earth, so too did the speed at which knowledge was built upon, added to, and doubled in size. So, while there may have been very few changes for thousands of years in how people lived and the knowledge accumulated and learned, eventually, over time, and with increased populations, this began to change.
Those who gather and collect information estimated that up until about 1900, the total accumulation of history’s knowledge was doubling in size about once per century. By 1925 it doubled again, and if we fast forward today, the total amount of information and the time it takes to double in size is once every 13 months. And, with the number of people now involved worldwide in testing and experimenting with better and faster technology, we see an explosion in automation.
Looked at the future and integrated semiconductor circuits and their patterns, or the increasing capability for man to make them smaller and fit more information in much smaller areas. ( best I can understand it), This caused computer scientist and futurist Hans Moravec to conclude that the future would bring artificial intelligence to a level unimaginable just a few years ago. We already see some of the results, and the digital age is about to explode in our lives.
When was the last time you stopped to think about the technology you use every single day?
- Do you understand how you can pick up your cell phone and instantly talk to someone on the other side of the planet?
- What about your television or your computer?
- How does it all work?
- Explain how radio waves go through walls, concrete, and steel?
- Even an airplane seems to defy logic and the Law of Gravity.
- And a spaceship that can fly to other planets?
- How in the world did Michal Jordan jump from the free-throw line and slam dunk? (Just kidding)
- The ability in medicine to transplant a heart from one human to another is incredible.
- The size and magnificent structures around the world are breathtaking.
- The progress of humanity in terms of quality of life has been remarkable.
I know what you are thinking, so what does any of this have to do with the rich and poor gap?
Technology has advanced so quickly and in unimaginable ways.
Technology has made it possible for humans to start with nothing to create a business and become millionaires and billionaires quickly. We have seen how what used to take 20 years to grow their business is now being accomplished in a fraction of the time. Each new kid on the block, so to speak, is getting there much faster and with far fewer employees. And they are making much more money. This is due to the available technology, which allows them to scale businesses with incredible speed, never before seen.
Think of something like America`s Got Talent or one of the shows that seek out talent from around the world. We now are getting the best talent from every city, town, and country, all coming together in a system designed to bring out the next superstar and the next big thing. Technology is globalizing things, pulling all the best together, finding what works, and discarding what does not. And the envelope is pushed to the limits every day by the millions of people looking to make money, be successful, and live the dream life.
Money is being poured into technology by the super-rich and investors of the world.
Do we think it is just for fun? If they are spending tens of millions now, they expect to make hundreds of millions or even billions in the years ahead. And they will because, unlike most people, they have an unfair advantage in investing and always have. So while I do believe that the Law of Accelerated Returns is what is creating all of this? Because that is what is taking place now.
Granted, it is also aided by deception, horrible ethics in government, laws that benefit the few, and greed. But you and I will not change that, and the technology and knowledge explosion will create more significant gaps. And yet we still do not teach kids about money in school? And that is no accident.
Technology and the way money is accumulated will continue, and in fact, it will get much worse.
What is most disturbing for the masses is that those now reaching these new heights of wealth have far fewer employees and use technology to replace them. Computers and software are changing so fast that most of us never understand just how far we have come or where we are. We have already seen in the past where entire industries have gone from highly successful to bankrupt overnight due to this Law of Accelerated Returns. Blockbuster is a perfect example, as well as some of the phone companies all replaced in a flash by technology that seemed to come from nowhere.
Redbox and Netflix put video stores like Blockbuster out of business, and these once super giants became tiny ants. And look at what happened to the cab industry that had been a large, stable industry for many decades. They all but vanished now, thanks to new companies like Uber and Lyft.
The difference we see now with money and technology
It`s that not that one company does better than the competition. What is happening is that technology and knowledge are such that one company eliminates the competition and completely changes the game. This is also something we will undoubtedly see a great deal more of in the coming months and years. New technology continues to evolve and eliminate current methods of business. The relevant will thrive, and those no longer viewed as necessary will vanish. (I am speaking in terms of business, of course) Suddenly, how everyone viewed movies changed on a dime and has continued to change. We no longer have a physical film to buy or rent because of the newer, more convenient technology. Things used to stay the same for many years in many areas of life, and now they are changing so fast it can be frightening.
In the next couple of years, we will see things happening so fast that most will not be prepared for them.
I remember the first time I got on AOL.com and talked to people in other parts of the world. Looking back, the internet was so slow for a long time. But to me, it wasn’t a problem since we had nothing to compare it to. But then, in just a few short years, the internet blew up and took over our lives.
Professional drivers such as truck and delivery drivers are a massive industry that serves every state in the union. But do many people understand that giant auto companies are busy building and developing artificial intelligent-powered trucks to replace them? Many people will laugh and think that it is a joke. It is no joke, and just because you do not see it does not mean it is not happening.
When the news finally breaks, and it hits you like a truck (sorry), it will be too late to plan and prepare. We go about life with the idea that we are secure and will be far ahead when change comes. The days of slow progress and change have ended. Better technology means that money can be earned faster in shorter periods. Welcome to the new digital age of Artificial Intelligence and automated computer everything.
What better way to lower costs than taking away all humans doing the work and replacing them with robots. It sounds like some sci-fi movies from the 90s are coming true after all. Robots do not complain, need time off, call in sick, show up late, or go on strike. It shows their ignorance because if you get rid of people and replace them all with robots, who do you think will buy your products? Robots? Duh! But, according to at least some nuts in government, they will take care of everyone. Uh, how has that worked out for other countries?
Businesses can produce products in a fraction of the time. And using technology can mean big money in this economy. Their robots can eliminate human resources (no pun intended), insurance, benefits, and life forms. But they had better build bigger warehouses to keep it all because no one would have money to buy them. What fuels these monsters is GREED and POWER and nothing more. Amazon alone and the change from storefronts to webpages has caused thousands of brick-and-mortar businesses to close their doors for good.
- Amazon employs around 650,000 people.
- Walmart 2,200,000.
Amazon has been growing, expanding, and taking over more and more of the market. And, as automation expands, it will require fewer employees to run its operations. And believe me, everyone in the “know” about this stuff and who are players does not have the best interest of average Americans in the front of their minds unless it is about how to squeeze another dime from them. The drive for power, fame, and control should be evident for many by now. And big corporations can now use technology to make money quickly and efficiently.
So what can we do about the changes in money and technology?
What can average, hard-working men and women, do so that we do not find ourselves at the extreme opposite end of all the wealth? Unfortunately, I cannot tell anyone what to do, how to think, or what to believe. And, for that matter, you may not think any of what I am sharing with you today. But I quit doing it years ago, listening to the news media and constant lying and misleading that now dominate the airwaves. The sin of omission is just as powerful as the noticeable biased, slanderous, agenda-driven distortion of information pumped into the minds of Americans 24-7 by the so-called free press.
Even if they report a lie, once it is out there, the damage is done.
Repeat it a thousand times per day on each network, and they program people like robots and puppets. So I would say the rate of hot air doubling in size as far as those in the newsroom are concerned is now happening at least once an hour. So there is a network in place to run things that have been hidden behind the scenes for so long that people often do not take it seriously or believe it when they hear it. And that, my friend, is the way these folks would like everyone to keep right on thinking. From our education to our diets and what we believe to be true has largely been what was planned for us to keep us where we are and allow all of those in control to remain where they are.
So getting the junk out of our minds is the first thing that can help us.
You and I do not Have to Be Victims. But, if you want to be on the right side of things as they change, you must be willing to change how we see things and think of our future. If we sit back and take what comes our way, we may not like the results. But, God is still in control and on His throne. And, if you allow Him, He will guide you every step of the way. God provides for His children. Rich or poor, the goal in life for believers is to serve and follow Christ. We cannot serve both God and money.
At the same time, we are to be good stewards of our opportunities and resources. So we must take action and not get stuck like a deer in the headlights. By step, I mean we need to be changing some habits and the way we look at money and our time.
Money is neither good nor bad. It is just a means of exchange.
- It is the love of money that gets people off course and into trouble.
- Technology is used for good and evil.
Our Habits are by far our biggest ally or our greatest enemy. They can determine what our finances will be like in the future. But, of course, there will always be things that seem unfair or those who seem to have an advantage.
- If others can learn, grow, change, adapt, and survive, then you can too!
- Since we know technology and money work hand in hand, we can learn to use technology to benefit our businesses or invest in technology.
One of the big reasons the rich will continue to get richer is that they have the inside scoop on things long before the masses ever see it coming.
In addition, they lobby and form relationships in government that specifically benefit their business. Laws and tax breaks that are extreme and are not in the country’s best interest often take place behind closed doors.
Take the stock market.
Insider trading and being in the loop allow many wealthy people (including politicians) to invest in companies long before trading publicly. Inside information that committees in congress have, make laws on, and then personally invest in knowing the rules they made will create huge profits is a common practice in our government. Investing in technology and making money is quite tricky for the average person. By the time these stocks hit the stock exchanges, and millions of dollars are invested, shooting the price of stocks up to the moon, the gains will be minimal for most except for those who supported in the beginning, who can now sell with massive profits in just a short time.
Is that fair? No, it`s not even close to being fair.
And over the next ten years, I believe we will see many people lose what they worked and saved for. But, then, a much smaller group of winners will make more money than they ever dreamed possible. I can tell you that it is improbable that if you and I continue to think like we always have and that this world will operate the same as it always has, we are likely to end up on the wrong side of these changes. Money and technology are woven together in today’s world. Technology will increase, and as it does, the ability for a business to grow at a record pace will increase with it.
I lived in Nashville for 25 years and listened to the Dave Ramsey show for much of that time. In the beginning, it was Dave and Roy Matlock and, eventually, just Dave. So many investment companies give advice but always as a cost and a risk.
But Dave created financial peace university, and his main goal is to help people become debt-free. He still has his show that people can call in and ask questions. Dave Ramsey is one person I recommend people listen to for sound financial advice and information. ( I have no affiliations with them, this is just my personal recommendation.)
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