We don’t much care about money in this house

Authored: Derek Miller

Howard Hughes: That’s because you’ve always had it.

Mr. Hepburn: What was that you said?

Howard Hughes: I said that you don’t care about money sir, because you’ve always had it.

This is the scene in The Aviator where Leonardo DiCaprio visited the Hepburn Estate for the first time. But is Leo’s statement accurate? In the United States we pride ourselves on being able to “pull ourselves up by the bootstraps” and make anything of ourselves. This was certainly the reason that our forefathers sailed across the ocean, to a wild and uninhabited country that they'd never seen. With the income gap growing at record levels, is it possible to become anything you desire? Let’s look at what income inequality has brought the world historically.

Exploration

Historically, when a group of people have not been able to achieve their goals, they find a way to make their dreams a reality. Sometimes it comes in the form of inhabiting new lands. Clearly, that's what the forefathers of the United States did, but that was just the beginning. With loads of immigrants flooding off the boats from Ireland, Italy, and other Eastern European countries, these people found that the American dream wasn’t alive and well. So, what did they do? They travelled west. The west was born from people seeking prosperity, hope and true freedom. They were in the pursuit of happiness. Afterall, the pursuit of happiness was the true mission of our forefathers. Leaving the east for the west, in that day and age, was an extremely dangerous and complicated journey. So, why take the risk? They wanted more, and the wanting stemmed from the income disparity of the time. Another result of income disparity is the advancement of technology. If everyone was happy with their position in this world, would we have the invention of electricity, the automobile, computers, the New York stock exchange, small businesses, computers, cell phones, etc. These inventions were all created by people that followed in the premise that, if they could create something that was useful, and furthered mankind, they to could have the American dream. So, where have we gone wrong, or have we gone wrong at all?

Tyranny

Income inequality has also brought us some pretty tragic parts of history. Communism, war, fascism, homelessness, slavery, mental illness, dictators, kidnapping, the mob, armed robbery, etc. So, how realistic is it to blame these things on income inequality? Would the Lindberg kidnapping have occurred if not for the pursuit of money? Bonnie and Clyde, Hitler, Stalin, Al Capone, etc. Well, these people were typically born into a situation of poverty and were seeking a way out. Should we believe that these people completed a masterplan? I would say no. I think, like most things in life, one small decision led to many more, that ultimately led them to become what they became.

Movements and improvements

While the theories of communism and fascism weren’t born from a mission of oppression, what ultimately came from the implementation of these ideologies was just that. However, this showed the world that there must be a better way. Is capitalism that way? Only time will tell, but most people in the United States seem to think so. What about the civil rights movement and its impact on the world? If everyone was treated equal and poverty didn’t exist, perhaps treating fellow human beings like less wouldn't be a part of our past. The treatment of Black America throughout history is far more complex than simple income inequality. However, let's look at it from that standpoint. It stemmed from slavery, and slavery was born from the idea that those with money, had the right to treat an entire race of people like they were less because they possessed the wealth and furthermore, the power. This was a means to further personal wealth for the few, by taking from the many. Slavery, human rights, and civil rights have become some of the largest issues that today's leaders face. What about the boom that's occurring in small business ownership today? The baby boomer generation thought that working for a good company, retiring with a 401K or pension, was the definition of career success. That is not the case with millennials. Gen X or Gen Y. So, what drives a men and women to take on the enormous financial risk and stress that comes with starting a small business? I think everyone would agree that income is at least one of the factors in making that decision.

Capitalism and Income

Most people that live in the United States believe that capitalism in its purest form is the great equalizer in business. For example, if you create a product or service, and your the best at what you do, you will have tremendous success. Some would argue that the United States has strayed from the purity of these principles, but let’s look at how capitalism can solve income inequality. Most people that live in the US today cannot afford a home unless they dig themselves deeply into debt. In fact, in certain parts of the country renting has become extremely difficult for most families. They are house broke without owning a home. That makes no sense to them. Hence, the tiny house movement is born. This movement is growing everyday and will most likely have a large impact on the US housing market. If demand dries up and supply increases, the free markets will correct the inflated cost of purchasing and renting a home. Tiny home ownership also happens to threaten one of the foundations of capitalism. Consumerism. Because families are starting to realize that being “house broke” does not aid them in their pursuit of happiness, they are forced to scale back on the “stuff” they buy. The benefits of owning a tiny house don’t end there. It’s also aiding in solving mental health issues. When you’re not keeping up with the joneses, you find yourself away from the television, exploring nature, spending time with your family, and pursuing happiness. Perhaps, capitalism is the answer?

The pursuit of happiness

While this article hardly touches on many of the issues that income inequality produces, I think most people will derive that the current level of income inequality cannot last, nor has it, historically. And make no mistake about it, when the goal is to have more, you will always seek more, no matter how much you have. No one person or income class is responsible for the predicament that we find ourselves in today. The solution is not to be angry at any group, or individuals within that group, but to start switching our mindset away from the trap of consumerism. People are people, if you are running a race, there is no lead that you would find unacceptable. It doesn’t matter how you gained the lead, whether it was a handicap that was given to you, or your competition tripped at the starting line, or you could afford better shoes, etc. This is a race, winning that race by as many lengths as possible is paramount to the feeling of victory that you're seeking. So, be careful with your judgement, if you were leading the race by a large margin, I doubt you would slow down so that your competition could catch up. Don’t hate the runners, hate the race. And, above all, go pursue your happiness because saying that "money doesn’t matter in this house" may just be the finish line that we should all be racing towards.

Derek Miller

Director of Funding

805-807-1129

[email protected]