5 ms·

> A lot of comparisons are being drawn, for example, between the 1920s and today. While the income distribution curves look startlingly similar, the concentrati

> A lot of comparisons are being drawn, for example, between the 1920s and today. While the income distribution curves look startlingly similar, the concentration of wealth is very different. Most of today's 1%+ are "working rich," i.e., they receive the bulk of their income from salaries and bonuses -- not from ownership or direction of capital. This is something that I don't know if so many people completely understand. For instance, my wife and I combined put us well in the top 1%[1] of the US based on our salaries, but there is no way we are "rich". And b/c we are trying to be smart with our money, we don't live like most would expect from our combined salaries. The issue, as I see it, is that our salaries are obviously not guaranteed. Now, I fully recognize I'm in a privilege situation regardless, but we're not living a jetset lifestyle by any means. Sure, we are technically in the top 1%, but it isn't the lifestyle most people would envision when they think "top 1%". Though don't get me wrong, as I said, I DO recognize we are privileged and am not complaining, just saying we aren't living like those robber barons of old. [1] - http://en.wikipedia.org/wiki/Affluence_in_the_United_States http://en.wikipedia.org/wiki/Affluence_in_the_United_States

danmaz74 13y ago
That's because the robber barons where more like the 0,001%, not the 1%.
DerpDerpDerp 13y ago
Your complaining about not being "rich" just sounds like trying to make excuses so you don't have to feel bad when I work full time and have trouble paying for both food and shelter. Do you think you really do that much more than me? I'm going to guess like most wealthy people, you simply have adjusted to the standards you can afford on that kind of income, and see it as "normal", and assume that most people have similar access to wealth. I experience that quite often with people who are in the top 1%: "despite these vacations we take, the expensive things we eat and buy, and these other things you couldn't afford if you saved all year for it, which are regular course for us, we're not /that/ wealthy, because the 0.1% has so much more!" So go ahead, knowing that I can barely afford to stay alive while working full time, and tell me that you're not that much more wealthy than I am. The reality is that you'll make more this year than I'm likely to make in a decade. (As a less aggressive side note: a better measure is worth than income, because as you point out, income is transitory.)
- aantix 13y ago
  What would you attribute are your biggest barriers to making more money? Is it education? Lack of jobs in your area? A disability? I'm not trying to be condescending, just genuinely curious about your situation.
  - DerpDerpDerp 13y ago
    Lack of access to capital and lack of ability to network with the wealthy are the largest; I could (and am in the process of) getting a better job. Working a job, realistically, is only going to get me so far, though, without one of those two factors. For what would be a modest investment on the part of most people I'd consider "wealthy", I could open a start-up where I'd make a reasonable wage AND have an ownership interest in the value of my ideas. Similarly, connection to people in higher status positions would let me get a better-than-entry position.
    - cjdu 13y ago
      This is old at this point so I have no idea if anyone will see this. I'm in the 5% according to this[1] based on my salary (not properties or anything like that, just salary). Based on the tone of the thread so far to this point, people aren't going to want to hear this, but I also lack access to capital and ability to network with the wealthiest in my area. I'm literally an employee. I very high paid employee, yes, but an employee. I too am only working a job and similar to you, it is only going to get me so far. I started working at McDonald's at 16 in high school. I worked my way through school (RA, Dorm tech, other odd jobs), worked my way into an internship (skipped junior year to do internship), finished school and was lucky to get a job (2000). That job started at $40k, which was amazing for a kid out of school, I guess. From there it was extremely hard work, lucky breaks, taking some chances before wife and kids came along, getting a master's degree, having a few setbacks (financially) and starting over. I'm making the money now, but I know this job won't last forever. I'm highly paid in this moment in time (and for the time I have this job), but when it ends, I can't expect another to just come along. So I'm saving. And preparing. And making sure this time doesn't go to waste. The truly wealthy don't think like this; they don't have to. There is not "what if" future. The OP and I seem like we are in the same boat and, frankly, I get what he/she is saying. Salaried employees that happen to find themselves in the top X% are likely not living large or without worry like the truly wealthy[2]. [1] - http://en.wikipedia.org/wiki/Household_income_in_the_United_States http://en.wikipedia.org/wiki/Household_income_in_the_United_... [2] - We are not "living large", we are comfortable. As an example. Wife drives a 2006 prius. I drive a 2007 minivan. Bought both used. We rent our home b/c rent-mortgage ratios in our area don't make sense to buy. Our kids go to public school. We worry about saving for the kids future like most anyone. We worry about retirement (neither of us have a pension) and we worry about health. A single high-cost health event could wipe us out. It almost did years back when wife got very sick and was in hosp/ICU for a week. Wiped out saving and had to sell car we had at the time and use CC to fully pay. And, yes, I Know that we were able to recover in part b/c of the higher than normal salary. The point is, we aren't living like the silicon valley millionaires/billionaires people would expect us to be. We also worry about money. The wealthy do not worry about money.

danmaz74 13y ago

That's because the robber barons where more like the 0,001%, not the 1%.

DerpDerpDerp 13y ago

Your complaining about not being "rich" just sounds like trying to make excuses so you don't have to feel bad when I work full time and have trouble paying for both food and shelter. Do you think you really do that much more than me? I'm going to guess like most wealthy people, you simply have adjusted to the standards you can afford on that kind of income, and see it as "normal", and assume that most people have similar access to wealth. I experience that quite often with people who are in the top 1%: "despite these vacations we take, the expensive things we eat and buy, and these other things you couldn't afford if you saved all year for it, which are regular course for us, we're not /that/ wealthy, because the 0.1% has so much more!" So go ahead, knowing that I can barely afford to stay alive while working full time, and tell me that you're not that much more wealthy than I am. The reality is that you'll make more this year than I'm likely to make in a decade. (As a less aggressive side note: a better measure is worth than income, because as you point out, income is transitory.)

aantix 13y ago
What would you attribute are your biggest barriers to making more money? Is it education? Lack of jobs in your area? A disability? I'm not trying to be condescending, just genuinely curious about your situation.
- DerpDerpDerp 13y ago
  Lack of access to capital and lack of ability to network with the wealthy are the largest; I could (and am in the process of) getting a better job. Working a job, realistically, is only going to get me so far, though, without one of those two factors. For what would be a modest investment on the part of most people I'd consider "wealthy", I could open a start-up where I'd make a reasonable wage AND have an ownership interest in the value of my ideas. Similarly, connection to people in higher status positions would let me get a better-than-entry position.
  - cjdu 13y ago
    This is old at this point so I have no idea if anyone will see this. I'm in the 5% according to this[1] based on my salary (not properties or anything like that, just salary). Based on the tone of the thread so far to this point, people aren't going to want to hear this, but I also lack access to capital and ability to network with the wealthiest in my area. I'm literally an employee. I very high paid employee, yes, but an employee. I too am only working a job and similar to you, it is only going to get me so far. I started working at McDonald's at 16 in high school. I worked my way through school (RA, Dorm tech, other odd jobs), worked my way into an internship (skipped junior year to do internship), finished school and was lucky to get a job (2000). That job started at $40k, which was amazing for a kid out of school, I guess. From there it was extremely hard work, lucky breaks, taking some chances before wife and kids came along, getting a master's degree, having a few setbacks (financially) and starting over. I'm making the money now, but I know this job won't last forever. I'm highly paid in this moment in time (and for the time I have this job), but when it ends, I can't expect another to just come along. So I'm saving. And preparing. And making sure this time doesn't go to waste. The truly wealthy don't think like this; they don't have to. There is not "what if" future. The OP and I seem like we are in the same boat and, frankly, I get what he/she is saying. Salaried employees that happen to find themselves in the top X% are likely not living large or without worry like the truly wealthy[2]. [1] - http://en.wikipedia.org/wiki/Household_income_in_the_United_States http://en.wikipedia.org/wiki/Household_income_in_the_United_... [2] - We are not "living large", we are comfortable. As an example. Wife drives a 2006 prius. I drive a 2007 minivan. Bought both used. We rent our home b/c rent-mortgage ratios in our area don't make sense to buy. Our kids go to public school. We worry about saving for the kids future like most anyone. We worry about retirement (neither of us have a pension) and we worry about health. A single high-cost health event could wipe us out. It almost did years back when wife got very sick and was in hosp/ICU for a week. Wiped out saving and had to sell car we had at the time and use CC to fully pay. And, yes, I Know that we were able to recover in part b/c of the higher than normal salary. The point is, we aren't living like the silicon valley millionaires/billionaires people would expect us to be. We also worry about money. The wealthy do not worry about money.