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The Rich Do Not Get Rich at Expense of the PoorSo where does the myth come from, if the numbers don’t support it?
The idea sounds almost noble on the surface. Somewhere out there, a billionaire got rich, and somewhere else, a poor family stayed poor, and the two are connected. One man’s fortune, the theory goes, is proof of someone else’s misfortune. Thomas Sowell spent much of his career taking that theory apart piece by piece, and one comparison in particular tends to stop people cold. There are more billionaires in the United States than in all of Africa and the Middle East combined. And yet the poor in America live better, by almost any measurable standard, than the poor in either of those regions. If wealth at the top really did drain resources from the bottom, that shouldn’t be possible. The math should run the other way. It doesn’t. And Sowell built an entire body of work explaining why. Here’s the question worth sitting with for a second. If billionaires were the reason for poverty, wouldn’t the places with the fewest billionaires have the least poverty? They don’t. Not even close. Sowell has pointed out that even America’s officially poor households today have things middle class families a generation ago could only imagine. Color televisions. Microwaves. Air conditioning in most of them. Cars. None of that came from redistributing money downward. It came from an economy that kept producing more. That’s the piece the rich-get-richer narrative always skips over. Wealth isn’t a pizza sitting on a table, sliced into a fixed number of pieces where a bigger slice for one person means a smaller slice for everyone else. Wealth gets created. It didn’t exist yesterday and it exists today because somebody built something, invented something, or figured out how to do something more efficiently than it had ever been done before. Every time new income statistics come out, Sowell noticed the same two claims resurface almost on schedule. The rich are getting richer. The poor are falling further behind. And almost every time, the actual data tells a messier story. People move between income brackets constantly. The family in the bottom twenty percent this decade is often the family in the top twenty percent a decade later. Most Americans don’t stay in one place long enough for the labels to mean much. So where does the myth come from, if the numbers don’t support it? Politics, mostly. Sowell has argued that no government program built on redistribution has ever lifted the poor the way free markets have, even though redistribution is what gets talked about in speeches. The people who actually solved poverty on a mass scale weren’t the ones giving speeches about compassion. They were the ones who figured out how to make electricity affordable, how to mass produce automobiles, how to get food and goods to more people for less money. None of that required taking anything away from anyone. It required making more of it. The billionaire and the poor family aren’t opposite ends of the same rope, one side winning because the other side loses. In a functioning economy, they’re often standing on the same ground, benefiting from the same growth, even if one benefits a lot more visibly than the other. That doesn’t mean inequality doesn’t exist. It clearly does. What it means is that inequality and exploitation are not the same thing, no matter how often the two get treated as synonyms. Sowell spent decades daring people to check the numbers instead of trusting the slogan. Most never do. |
Good point but as long as we have crooked politicians getting in by needing to import votes or cheat who produce nothing, they will create shortages, housing being one of them. On the other end if some of the producers could replace humans with robots they would.
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