Early last week the Forbes 400 list was released, and the richest people in the United States were ranked. Bill Gates and Warren Buffett sit at the top of the list, while twenty-somethings Eduardo Saverin and Dustin Moskovitz of Facebook fame appear for the first time. Each of the 400 is worth at least $1 billion, and their leadership impact is impossible to quantify. Collectively these individuals have enormous influence on issues ranging from politics and philanthropy to the economy and business. In another type of article last week, Thomas Friedman continued to implore citizens of the United States to understand where the country is headed and how other nations see us. Friedman says simply that we must all start moving in one direction or the country will continue to falter. Can the rich help lead this effort, and if so, how?
1. Media
If you've made the Forbes list of wealthiest Americans, chances are you have unprecedented access to the media. Or, in Rupert Murdoch's case, you might own a portion of the media. Rupert's empire includes Fox, the Wall Street Journal, the New York Post, MySpace, DirectTV and major newspapers in the UK and Australia. The "left" has accused Murdoch of using his media empire for his own ideological gains. But if ownership provides a platform, so too does inclusion in the billionaires club. Despite the $700 billion that would be added to the US deficit over the next ten years, Donald Trump recently made the media rounds on Fox and CNN, advocating for extended tax cuts for the wealthy and suggesting that the job-creating rich will leave the United States in droves if the tax issue isn't solved. The larger question is, what do these leaders use their media platforms for? Are they further polarizing the public with fear, uncertainty and doubt, or are they genuinely trying to advance a solution-focused discourse?
2. Business
Of the top 20 richest people in the United States, 4 earned their wealth from Walmart, 3 got rich from Microsoft, 2 hit pay dirt with Google, and the brothers Koch are reaping the spoils of leading their father's energy and manufacturing empire through the new millennium. In short, 4 companies have produced 11 of the top 20 richest people in the country. With small business suffering, and Blockbuster and other mid-size ventures going bankrupt, big business may be consuming the American landscape. However, where we're going is difficult to say. Walmart has long been beaten up for its negative impact on local commerce, and the energy industries that have produced nearly 35 of the richest 400are undergoing radical changes in light of growing environmental and sustainability concerns. Does such a concentration of power and wealth contribute to the American Dream, and how might these businesses guide the United States moving forward?
First of all, I looked over Fortune's entire list. It was somewhat alarming to me that 4 of the 9 wealthiest individuals were members of the Walton family. It just goes to show the money making monster that is Wal-Mart. On a better note, I was pleased to see my idol Mark Cuban on the list. I like Friedman's article. I agree that we don't need to start emulating China's system. We need to get that old-fashioned, American motivation back. With that said, there is no doubt that the Fortune 400 have unparalleled motivation. That motivation, however, seems to doing little good. It feels like they are doing everything in their power to make themselves wealthier rather than help the country. If a person has the available resources and power to make a difference, then they need to do it. That's just my opinion. When the facts show us they the rich are getting richer and the rest are becoming worse off, something really has to be done. Our country is falling down a slippery slope, and it reflects on poor leadership in every field. Until these billionaires put personal wealth aside and focus on helping us all, they will not be able to keep building there wealth for long.
ReplyDeleteInteresting - but you left me wanting more. What is the slippery slope? And is it only up to the billionaires to put their monetary desires aside to help "us all"? Is there anything that people who aren't as well off should also be doing, or is it all up to the rich?
ReplyDeleteA few major ideas stood out to me. I do think that whatever the rich own, for example Rupert Murdoch owning a portion of media, they will use to their advantage. But I also feel this comes with no surprise. Another thing that stuck out is the idea that the impact of big businesses may contribute to the American dream. I feel that in a way they may be discouraging to the American dream because some people have the idea that they can come start this great life, when in actuality the small to mid size businesses are going bankrupt. Big businesses are booming. I also am glad the idea of philanthropy was highlighted. I think it is really important that the rich use their money for good and philanthropic events are a great way to do that. Although this gets overlooked sometimes and the bad is highlighted.
ReplyDeleteIt's a bit ironic - Sam Walton started the first WalMart as a small country store, but now it's one of the largest businesses in America. So Sam Walton, in large part, represents the American dream, right? But you also highlight the other side of the coin - with WalMart around, is it really possible for a modern day Sam Walton to start a small store and have it grow?
ReplyDeleteThe numbers that stood out to me the most were that 11 of the top 20 earners came from 4 different companies. That shows what kind of power those 4 companies have. Also the top 10% of earners make nearly 50% of the country's income, that's an insane imbalance. I feel like it's their duty as the elite earners in the country to give back to the community, it's not their fault that they earn so much, they just have the best business plan, but it's their responsibility to help stimulate charities with their excess wealth. Most of their money is made off of people who aren't in that 10% of earners. Wal-Mart appeals to low income families, Microsoft has at least one product in almost every house in the country, etc... While Bill Gates, Warren Buffet and others are doing a good thing with sending their excess wealth back to the people, it's obviously not enough, because while Bill Gates still takes his private Jet around the world, there are children all over America who struggle to find food. I think it's time the wealth is spread in this country and not used to widen the gap between the top 10% and the bottom 10%.
ReplyDeleteI definitely agree with the idea that while the rich are using some of their money to help philanthropic causes, they should probably increase the amount of money donated. I am sure that the CEOs of the biggest companies in America are more than comfortable with their current personal worth, and could certainly afford to spend more on helping those less fortunate. The article asked, "Should the wealthy be expected to give their hard-earned dollars...?", which I see as a tough question. They should not be "expected" to do anything with their money, but I think anyone with a conscience could see that maybe instead of purchasing another brand new Mercedes, that money could go toward a charity...
ReplyDeleteYou both bring up good points - and you each state essentially that the wealth should not be so concentrated, but no one should be forced into doing something with their hard-earned money. I don't begrudge anyone for making a fortune. But I do "disown" advocating for the policies that make it easier for the larger companies/individuals to make money easier (e.g., less stringent pollution guidelines) at the expense of others. There are plenty out there who disagree, but what do you think?
ReplyDeleteI think these business leaders and rich people do a lot for philanthropic causes. I think they get a lot of criticism for not doing enough but in the end, they worked very hard to get to where they are and they aren't required to do any sort of philanthropy, so the fact that they are so generous with their money is enough for me.
ReplyDeleteYes I believe that such a concentration of power and wealth contributes to the American Dream. The American Dream to me is having a job that you enjoy, a happy family, and be financial secure. Bill Gates and the Walton brothers are at the top of the list and they acquired their wealth differently. The Walton brothers opened Wal-Mart and it is now the greatest producing business. It started from a small shop and just kept expanding. This could compel people to start businesses that could possibly grow to be very successful; however, the chances of that actually happening are very slim. These extremely rich businesses should guide the United States in a positive direction by giving back to their communities and through philanthropies.
ReplyDeleteI don't think it necessarily hurts the image of America by having all of these people gaining so much wealth and power. Despite how America may be portrayed in other countries, this is still a good representation of how, in our country, the American Dream can be achieved. I think something that is very important, though, and something that we may need to develop more thoroughly in the future is our impact of these people and businesses positively back into our own country and others, which I feel the article highlights. So many (virtually all) of the people on this list have affected American's daily lives and the lives of people from other countries. It mentions in the article how the CEO's of Facebook are new members of this list. People use Facebook all over the world, in all countries. There is so much opportunity for these people to have an even bigger impact, personally. Things like the media and politics are highlighted, among businesses. Those are two very important things that can branch out and be recognized on a global scale as well as in the United States. It's a great way for the U.S. to, as the article says, "make waves," and do so in a positive way. Other countries have no where near the impact we as a nation have, and in looking forward with these people as leaders, we would be foolish not to make sure we are taking advantage of everything they can offer.
ReplyDeleteThis blog was very interesting. It is shocking that 4 companies have produced 11 of the top 20 richest people. Three of those four companies being Wal-Mart, Google, and Microsoft. The question was raised that is it going to be harder for people to pursue the American dream; this is to come from relatively nothing and make it big. I honestly feel it will impact most people’s opportunities to make it big because it seems the only way you can make it big now is to work for these companies, which in turn puts you at their mercy. On a leadership stand point, should the wealthy be responsible or should they be helping the less fortunate and the American economy? I think that question deals with someone’s moral views, mainly because if they don’t believe in karma or helping people, then why would they? Because other than them possibly getting self-satisfaction, they ultimately could be losing money without any physical gain. As for the economy, I do feel the rich should do more to help, whether that is making more jobs, funding, or what need be. My reasoning for that is simply because it was this nation and this economy that got them where they are (in most cases), so if they are not willing to help the cause that got them there, then I have no problem with the government essentially ‘punishing’ them by taxing them more than lower level income people. Helping the government that helped or allowed people to make it big is like an unwritten rule, technically no one has to, but it the same as people helping their parents when they get older; the parents helped their children through childhood, so when their children become of age, their children help the parents (when needed).
ReplyDeleteThe idea of spreading wealth is too close to socialism for my taste. The fact that such huge fortunes and wealthy people exist is by their own success. As was already said, Wal-Mart is just a result of the American dream and we cannot punish it for becoming hugely successful. Nor can we expect this lucky list of people to just give and give without any more reason than to help our country. I know our country is the reason they had the opportunity to even be in this situation, but they still worked to get where they are and it's unfair to expect them to be saints about their money. It is admirable that many of them give back and help with charities but like someone already said, they are already punished by taxes for being rich meaning before being generous at all, they give a lot back and it is not their choice. If we really expect them to try to keep us all equal and lessen the gap between the top 10% and bottom 10% then we might as well just demand equality across the board, regardless of occupation and expected income, let's just be socialist so everyone on the bottom of the totem pole stops complaining... oh wait, then everyone on the top would complain. No bueno.
ReplyDeleteFirst, I don't think taxes are "punishment". The rich use sewers, streets, benefit from cops, firefighters, and other conveniences that their taxes afford them. Second, I wonder if there's any middle ground between "socialism" and "capitalism" right now. I don't like the idea of forcing anyone to "spread their hard-earned wealth", and at the same time, I dislike the idea of implementing policies that only benefit a small number (the rich) primarily because of the influence that their wealth affords them. Is there any middle ground?
ReplyDeleteThe leaders use their media platforms (in the tax instance) to advocate their opinions on how to help solve the current crisis in the economy. I doubt their overall goal is to strike fear in to the public, however sometimes being knowledgeable can create fear. These leaders all have different opinions and by voicing these opinions they are educating the public. Every morning there is a new guest on Squawk Box and each has his or her own opinions about what Congress should do (either before or after elections in November) pertaining to the tax legislation, and how this legislation will benefit the economy.
ReplyDeleteI don’t think Wal-Mart necessarily always has a negative impact on local commerce – it brings a cheap place to buy goods, and businesses that are forced to close because of it open space for new markets. Just a positive spin on what others see as negative.
However, I don’t think that having such a vast majority of the ‘American landscape’ being consumed by big business is a good thing. Entrepreneurship will be choked out if Big Business takes over. While having large businesses expand can create some job security (as long as the businesses are stable and not misrepresenting themselves), small business is vital to the economy. If Big Business gets too big of a piece of the pie, it will only want more for itself, and eventually all policy will be beneficial to Big Business because it holds so much swaying power. Therefore, having so much power over politics hurts our government because they may not do what is good for the people, but what is best for their rich friends.
The wealthy leaders will ultimately be the ones to help our economy. They hold so much power; however, they will use it only when it benefits them. A redistribution of wealth (as one person commented) will not solve anything. All it will do is make the lazy people who have too many incentives to NOT work as it is, be even lazier. People don’t become rich and powerful by being lazy.
You raise a number of good points - but I want to focus on the final one. You make a distinction between wealthy people - who you assert will help our economy - and the lazy people who "have too many incentives not to work." I'm wondering, is it either one (you're wealthy and work hard) or the other (you're lazy and don't work hard)? Is there any middle ground - can someone work hard and not be wealthy? I think these types of assumptions lead us to simplistic solutions that don't necessarily solve problems. Is it possible for you to unpeel that last paragraph and provide further insight into your meaning?
ReplyDeleteI was shocked after reading the “Five ground rules for the billionaires club” article because four different companies produced 11 of the 20 richest people in the country. In reference to Friedman’s statement that we “must all start moving in one direction or the country will continue to falter”, I believe that the wealthy can help lead the country in one direction by giving back to communities. Philanthropy is the best way to help stimulate our economy, and to be honest, these people probably have more money than they know what to do with. So why shouldn’t they donate it to people less fortunate? I commend the wealthy people who donate because they worked hard for their money, but there are people out there who are just in unfortunate situations and cannot get out of the hole they are in; It’s not that they aren’t working hard. It is hard to say where our nation is going with the big businesses taking over, making it hard for a small company to begin. It also makes our nation’s unemployment rate more vulnerable. At any rate, these leaders have the power to help America. That is, if they choose to do so.
ReplyDeleteWith money comes power. The Forbes 400 list is just one way of identifying these people of power, but chances are that if you have that kind of money, who are already well known as the guy who grasped success. One thing I think we should recognize is that, in most cases, to gain this success and power, it wasn’t just handed over to them. These people are people who had a goal in life and the dedication to strive toward that goal. Along their way they would gain followers and supporters in which could only be gained by good leadership.
ReplyDeleteI agree with Friedman in that the United States is headed in the wrong direction and something juristic must be implemented so change that direction for the better. Like a great leader, it is important for the United States to pick a goal and a path in achieving that goal, so that we can all work together in following that same path to success and I for one believe that the “rich” can help us with this idea. This is not an easy task, but it is a task that people like those listed in the Forbes 400, has encountered and has experience with. They know what needs to be done and not only that, but with their combined effort, the resources they can produce to help this change would be extremely helpful. Take Murdoch for example. With his resources in media, his “empire” could help the communication between the people of the U.S. to all be alert of what is happening. The second rule, business, is a concern for those who are trying to “live the American Dream”. Big businesses like Wal Mart make it so that smaller businesses don’t have a chance anymore. The Baby Boomer Generation spiked all of these new businesses in which today has grown into empires.
One of the biggest concerns of the U.S. is the economy. The federal deficit that the U.S. possesses is outstanding and something has to be done about it. I believe that the billionaire’s club can have a huge impact on the wealth of us as a country. Is it their responsibility that the U.S. government screwed us over? No, I don’t believe it is. What I do believe is, with most of them being citizens of this country, that they should contribute a portion of their wealth, the wealth that consumers and other people have helped them gained through the business we give them, to help us as a country to get back on the right track. With the wealth, the power, and some may say the leadership skills that these members of the billionaire’s club possess, I believe they could have a huge positive impact on the future of our country.
The American Dream is working hard for your money and loving the job you have. I think it’s not just up to the rich to help out. I think everyone should help out. If the rich have to power to get the word out then they should step up. Look at Wal-Mart it was an American Dream and look how it has grown. It’s unfair to ask people to give more and more when others give nothing. I think the rich should use the media to help out and not just when it benefits them.
ReplyDeleteI'd like to look at Wal-Mart in particular and start by saying that it came from the American dream, starting as a small store and growing to become, arguably, the largest superstore in the country. That being said, I believe it is hard now for people to start their own businesses and grow to be the size of Wal-Mart because of all the attention Wal-Mart has. It is insane that 4 of the top 10 richest people got their fortune from Wal-Mart, but it also says they worked hard and probably deserve it.
ReplyDeleteGoing along with Friedman, I believe that we may have to all move in one direction to continue success. The rich are a small but powerful part of this country. They have a lot of say in what goes on with a lot of influence and can make a lot happen without the help of others.
I don't believe any amount of wealth should be shared. The rich work hard for their money just as well as anyone else.
I think this article is very interesting due to recent controversy regarding Occupy Wall Street. The wealthy are a small percentage and looking at this article definitely proves that. With a handful of companies maing people billionaires and making them richer by the day. I don't necessarily agree with the way the Occupy WallStreet campaign is going but it is definitely an interesting thing to look at when only a small portion of society is making this amount of money.
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