Are the Rich Necessary

Topics: Market economy, Capitalism, Mixed economy, Economics, Poverty, Market / Pages: 10 (2480 words) / Published: Nov 29th, 2009
Are the Rich Necessary?

Economic Problem and Science

If we can promote economic growth through cooperation, the scientific method could help us separate the truth and error to find the best approach for cooperation. However creating wealth is not the same as building a building, an engine and etc because same set of rules doesn’t apply to everyone. Economics is a human behavior and humans are extremely unpredictable.

The Rich

Some people referred to as egalitarians or equalitarian wishes to get rid of the rich or at least reduce the extremes of wealth and poverty. They views rich as parasites because they reap the benefits in luxury while the poor work hard at minimum wage to earn their money. They argue that wealth causes poverty, the rational without the rich there would be no poor. When calculated, if the top one percent of rich in America gave half of their net income to the poor, poverty defined by the government would be eliminated in the US. This may be true for America but the affect on the global poor would be minimal because the needs of the poor globally are greater than American poor. The problem is not that the rich does not adequately share with the poor, instead they grind people to the ground, exploit them, steal from them, and deny them with decent living standards or health care.

The Need for the Rich

Others believe that the rich are essential to our economy. The economy needs rich people because they have wealth. As the economy expand, the rich needs to save profit to invest on capital goods to adjust to the increase in poverty. Why is the poor and middle class living in subsistence and can’t save? They may have money saved up for retirement, and college fund for their children; however they have many immediate needs and desires, in this case will eventually deplete their funds. Unlike the poor, the rich’s income is greater than their expense even they splurge in luxuries therefore forced to save. It is know in history that the

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