Buffett Feels the Poor Shouldn’t Blame the Rich for Inequality

According to Warren Buffett, the third richest person in the world, people need to quit blaming the wealthy for income inequality in the United States of America.

Warren Buffett, in a Wall Street Journal opinion piece, and is estimated to be worth roughly $71.3 billion by Forbes Magazine, depressingly claims as fact that “the poor are most definitely not poor because the rich are rich.”

Citing Steve Jobs and Henry Ford as examples of innovation, Warren Buffett says that the rich are certainly not undeserving and that “most of them have contributed brilliant innovations or managerial expertise,” to the economy in America.

Warren Buffett also makes claims that minimum wage will not solve the inequality problem by raising the hourly rate to $15 an hour. He also believes that improving the quality of education will not make a difference.

Warren Buffett’s proposed solution is to increase the Earned Income Tax Credit, which the United States government currently provides to millions of low-wage workers, with the stipulation that as the payments go down, wages will increase.

Buffett says that the widening gap is an “inevitable consequence” of a market-based economy that is so advanced, and he also says that pay first started to become unequal because people are incapable of doing the same jobs.

Buffett said: “No conspiracy lies behind this depressing fact: The poor are most definitely not poor because the rich are rich. Nor are the rich undeserving.

“Most of them have contributed brilliant innovations or managerial expertise to America’s well-being. We all live far better because of Henry Ford, Steve Jobs, Sam Walton and the like.

“It is simply a consequence of an economic engine that constantly requires more high order talents while reducing the need for commodity like tasks.”

4 Comments

  1. I agree with your quotes Mr. Buffett, but have a viewpoint that differs. What if a middle class person becomes poor due to a sickness and not being able to do there job at the capacity required? Or what about the fact that most Americans make less than what they earned 15 years ago? You can talk about the great entrepreneurs from the past all day long, and how they spread their wealth among the company. I love hearing stories about true hard work. But this is the new micro-managed era. But where is the new innovation of this country? I have lots of great innovations in my mind, that I believe will better our situations. I just need corporate America to listen.

    • There is plenty of innovation. Look at Silicon Valley for starters. There has been plenty of innovation and wealth built within the last 15 years in that arena.

      Even Amazon, Starbucks, Under Armor, among others such as the “rise of Apple”, Tesla, Google, Facebook, GoPro, Twitter, etc… the list goes on and on.

      Computer programmers are making more than doctors these days. Follow the cheese. It has moved. It always has been moving. It will continue to move in the future.

  2. I would assume Mr Buffett is unacquainted with what being poor is. I therefore submit he is the least best qualified person to comment on the difference the wealth gap has made. Perhaps Mr Buffett could explain who he expects to buy the products the likes of Henry Ford and Steve Jobs make if the majority become poorer. Why then would there be the need for innovation? Which innovation might he lay claim to himself?
    When people say a bridge was built by a certain man we should remember the men who actually construct the bridge. They take the design and make it one which works. This is the reason the Japanese motor car factories are so innovative, they promote the Kaizan approach of continuous improvement brought about by the workforce.
    Mr Buffett is a man of good heart I do believe. I just wish he would indulge we the majority and visit the people of Omaha or Manchester or Liverpool or London. We don’t need his style of advice, we need his empathy.

  3. I agree with what you say, Mr.Buffet. Let me just say for the record, I love Sam Walton and I think you remind me of him. Both of you are wonderful businessmen who believed in value. The value of time, the value of money and the value of people. It is only fair that you were rewarded during the golden years of American Capitalism, where the middle class grew along with you and prosperity was always over the horizon. Although I regret to say that statistics tend to show that the trend has shifted away today. Worker productivity has increased at the same rate but wages have stagnated. CEO pay has skyrocketed even though their skills remain somewhat same. All of this rising due the trend of pressure being put on those at the top to maximize short term investor profits, leveraged buyouts, stock options, large scale layoffs, more Financial Engineering and less of actual Engineering. You have all the right to believe that the rich should not be blamed for the loss of the poor, and you deserve your wealth because you believe in value, something that I regret to say is lost today.

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