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.”