Patrick Schwerdtfeger is a motivational speaker who can cover income inequality and the division between rich and poor at your next business event. Contact us to check availability. The full transcript of the above video is included below.
Full Video Transcript:
Hi and welcome to another edition of Strategic Business Insights. Today we’re going to be talking about the division between rich and poor and what is that division actually because there’s a huge misconception and it’s being fueled by the media, it’s being fueled by our politicians. But the notion is that the division between rich and poor is the division between people who are making, say, 100,000 dollars or less and the people who are making 250,000 or more, and that’s not the division at all. In fact, the division between those two groups is actually shrinking. It’s not expanding, it’s shrinking.
The actual division between rich and poor is the division between people who are making, say, 500,000 dollars a year and less and the people who are making 10 million dollars a year or more. That’s the division between rich and poor. That’s the division is actually getting wider. It’s between the people who are making an income and the people who are making profits from a business. There are increasing amounts of leverage in our economy. Technology is leverage. There’s leverage in our financial system. There’s leverage in manufacturing through robots and tech. There’s more and more leverage in our economy all the time.
What does that mean? That means that a person or a business can leverage these different technologies and get a larger share of benefit relative to the input that they put in personally. That means that some people are making enormous amounts of profit and if you want to be on the right side of this division that we’re all talking about, you need to be leveraging things like technology and the financial world, not being leveraged by technology or the financial world. We have to be on the right side of the equation. You have to be essentially a business owner. You have to think, “How can I leverage my life, my income, my intellectual capacity?”
We all have a skill set, we all have a tool kit of things that we can do. I have a skill set of things that I can do. I have to find ways to leverage that skill set. That’s one of the reasons why I do these videos. But you have to think about the same thing. What is your skill set and how can you be on the right side of the leverage equation?
Because I’ll tell you something, the top end of our population in terms of income is exploding. That top 1%, it is exploding. And if you’re curious, by the way, to be in the top 1% in the United States, you have to earn approximately 400,000 dollars a year. That’s going to put you in the top 1% in terms of annual household income, 400,000 dollars a year. If you want to be in the top 2% of the population, you have to make about 300,000 dollars a year. And by the way, if you’re in New York State, or actually it’s in the New England states in general because all of the stock market people are over there and they make a fortune, if you want to be in the top 1% over there, you have to make 700,000 dollars per year. And by the way, the 0.1%, so we’re talking about one out of a thousand, if you want to be in the 0.1%, you have to make about 1.2 million dollars per year.
But the point is that that top end of our economy is exploding. There are a lot of people who are doing very, very well, and why is that? Because they’re finding a way to be on the right side of that leverage equation. You want to be making 10 million a year or more? You want to be part of the mega-wealthy? You have to find ways to leverage technology and take advantage of the other forms of leverage that are evolving as part of our economy. That’s the division between rich and poor.
Thanks so much for watching this video. My name is Patrick, reminding you as always to think bigger about your business, think bigger about your life.
Patrick Schwerdtfeger is a keynote speaker who has spoken at business conferences in North America, South America, Europe, Africa, the Middle East and Asia.