Video Transcript: Causes of Inequality in Income Distribution

Hi, welcome back. In this video, we're going to discuss the causes of inequality  in income distribution. So, in this first graphic, we want to talk about the income  inequality in America, right? So, if you look at this top graph, this is the actual  distribution of wealth in the United States, right? So, so the bottom 20% has this  very small sliver, right? And then you've got the middle 20% right? And followed  by the 20, but but the top 20% right? And the top 1% they control the the income flow in in America, right? So, but but Americans think that it's a little bit different,  right? They think it's more of a equally weighted distribution, right? When it's  actually not. So, so you look at the distribution that 92% of Americans choose as ideal in the bottom graphic, right? So, so the so the so the middle class and the  middle income earners, right? They they have more a piece of the pie in the  ideal situation, right? But we're really but we're really controlled here by the the  the disproportionate income stream in in the U.S. So this is a problem that  needs to be addressed, right? But it needs to be addressed in the right way. Like we can't go about it through socialism or communism, right? We need to come  up with a an opportunity for for all of us to be brought out or brought up, right?  Through wage increases, through the free market, through less government  intervention, through lower taxes, right, so that we can create our own prosperity and create our own wealth and be entrepreneurs, right. This is the only way that  we'll be able to truly have our ideal distribution of income. So the causes of  income inequality: rise of more decentralized wage system determined by free  market supply and demand principles, right? So, so enterprise bargaining, right? So, so because of a decentralized free market wage system, right? Companies  have the ability to set prices how they like, which is fine, but we need to make  sure that the the the cost for the common good is not outweighed by excess  profits, right? I know that may be counter to what we have talked about in the  past in profit maximization, but we can maximize profits, but we also need to,  you know, entertain the ideal or make sure that we are taking care of our people  and ensuring that they have an opportunity to develop and create their own  wealth as well, and pull these people up as we're coming up, right? So, wealth  and how it affects income distribution. Wealth is an insulator against a rise in  inflation. Look, the more money I have, the more I can spend on prices, right?  So, so we need to make sure that we're putting our people in a position to  mitigate inflation on their own, right? We don't need government intervention.  We need a free market system that works for everyone and not just the top 20  and 1% right? So we need a so so this is an idea of the rise of a more  decentralized wage system. So so this is what's happening, right? So so so  decentralized essentially means getting away from centralized planning or  getting away from government intervention in our free markets, right? So, so the rise of the decentralized wage system has created the income inequality that we see today, but we going back to the point of okay, we need a free market  because you know it sets prices correctly and is not waste and it's efficiently ran,

right? But we need to make sure that the prosperity and the well-being of our  citizens and our people are put ahead of corporate profits, right? So, so, so you  can see in this graph that as the you know the the top wage $300 per hour,  obviously the supply for that labor is going to outweigh the demand, right? Right. The demand. No one's going to want to pay $300 per hour versus as at the  bottom $15 an hour, right? There's there's a high demand for that labor because  it's cheaper, right? So so people obviously companies and corporations  obviously desire cheaper labor. But we can't put it so cheap that we price people out of the market, and then they aren't able to, you know, really be sustainable in in their lifestyle and create a lifestyle that lifts everyone up, right? But but but in  a capitalistic sense or in a free market sense, not government intervention to  make everything equal. We need to put it upon ourselves and and look as we  live in a community and and provide for each other's welfare, right? For for for  our for the welfare of our people, right? So so not putting the cart before the  horse as far as profits are concerned, right? Don't don't don't necessarily you  know, put the profits in front of the people, right? Because people are your most  important resource, and we want to make sure that their, you know, well-being is is taken care of, right? But but but in a capitalistic free market sense. So wealth  is a determinant of income inequality. Wealth allows individuals to take  advantage of circumstances otherwise unavailable to individuals subject to poor  socioeconomic status, right? So, so wealth gives you a lot more opportunities,  right? So that's why we need to put our people in a position to where we can  create and sustain wealth for ourselves, so that we can put ourselves in a better  socioeconomic status, right? Not to say status is important, but I'm talking about  you know pulling ourselves out of poverty. That's what I mean. Education, right?  That's why CLI is so important and can impact so many people through the  education. It'll provide the opportunities to pull yourself out of situations that  aren't very advantageous, right? So, so through education, now we can network  and make contacts, right? And now with these things, we are going to make it  relatively more easy to enter the workforce, right? And the more the education,  the greater contacts, the easier we're able to enter into the workforce, the the  more the greater the ability we're going to have to invest in assets and  appreciate our our value or or our wealth or net worth. Right. So able to  capitalize on inflation as prices of assets increase. Right. So if we can capitalize  on inflation, right? Stock prices go up; those prices are inflating. We want to be  able to take advantage of the increase in asset prices, right? Whether it be real  estate or you know stocks or whatever commodities that you can invest in to  take advantage of the inflation of of those of those prices, right? So we need to  put ourselves in a position and put our people in the position to do that as well.