The 80/20 Rule rules again!

[Spider]

Heard on CNBC yesterday:

20% of the American population controls 84% of the wealth.

What do you say about that?

[cbscreative]

I say that unless 80% of the people you know think you're crazy, then you're doing something wrong.

[Evan]

I do know that 20% of my clients create 80% of my problems... So that may be true.

[scottish]

america will stay that way until they try a little bit of socialism. you need to tax the rich to feed the poor. in europe people earning $500,000 a year would probabaly be taxed 50% of it in most countries.

you also need free healthcare. i mean you already have a free fire fighter service, so it can't be that bad. it's not communism! lol

[cbscreative]

america will stay that way until they try a little bit of socialism. you need to tax the rich to feed the poor. in europe people earning $500,000 a year would probabaly be taxed 50% of it in most countries.

you also need free healthcare. i mean you already have a free fire fighter service, so it can't be that bad. it's not communism! lol

I think it's best not to go there, scottish. Being a small biz forum, we are a group of entrepreneurs. Most of us probably don't qualify as being "rich" so we would be personally affected by your suggested course of action, but few of us would advocate being penalized just for working our way up to that level. Once you adhere to the idea of "sticking it to the rich," that scale tends to slide until more people become categorized as rich. The income tax in the US started that way (citizens were promised "only the rich would ever pay it"). I take back my comment, I guess most of us do qualify as being rich.

This thread is not really about the 80/20 rule being a bad thing, it's really a law of nature whether you think it's good or bad. Trying to change that law is artificial stimulation, and some other natural law will inevitably counter balance any artificial manipulation. Mankind has a deep desire to thwart nature, but nature always slaps back and refuses to surrender, making all attempts to defeat it temporary at best.

Last I checked, America is still one of the best places on the planet to live in spite of our problems. I don't agree with anyone who thinks we should try to be more like other places in the world. When there is a disaster, does America not help any way we can? That requires we be "rich" enough to help. If you want to bash America, we're not perfect, but that's not going to go over well. If you suggest we need to be like other countries, sorry, I don't agree with that.

When some other country becomes the place most people in the world wishes they could live, then I'll reevaluate my position. As of right now, even many people who hate us still live here. You can't beat a deal where you're free to hate your country and not have to worry about being arrested.

[billbenson]

Not to mention the math doesn't work. There is more tax revenue generated by taxing everyone a little than those with a lot a lot. There just aren't that many rich. Governments need to make money selling razor blades not the handles.

[Russ in Vancouver]

in real estate, the top producing 10% of the members sell 90% of the properties and the remaining 90% of members fight for the remaining 10% of properties.

[greenoak]

im with scottish...sure i would like to be rich....but actually im down here in the shrinking middle paying tons of taxes and paying for health insurance for a lot of people....and i have no big lobby trying to help me...when they talk about not upping the taxes on small businesses its a trick...most small businesses i know sell under a million a year..... how many small businesses MaKE as income 250k or 1 million a year....?

[billbenson]

If you have a small business you have a platform from which you can make money. The only thing between you and making more money is you. If you have a business that won't make you what you want, you can change it. My objective is to make $1M per year. I certainly think that is achievable.

[Spider]

america will stay that way until they try a little bit of socialism. you need to tax the rich to feed the poor. in europe people earning $500,000 a year would probabaly be taxed 50% of it in most countries.
you also need free healthcare. i mean you already have a free fire fighter service, so it can't be that bad. it's not communism! lolI wonder how much you really know about America, my friend. The USA is far more socialist than you seem to realise. (Far more socialist than Americans realise, too, actually!) Of course, nothing is free, even in Europe - things are paid for - by the government out of tax revenue.

The USA has free (paid for out of taxes) --


Schools - elementary through high school = socialized schooling.
Roads - local streets, main roads, state highways and interstate highways, along with the bridges, viaducts and elevated intersections = socialized road system
Sewers, rainwater and flood control = socialized waste water system and treatment
Water supply - to homes, factories and irrigation for farms (may be private monopoly QuANGO - quasi-autonomous non-government organization) = socialized water
Hydro-electric dams - usage fees to private power companies = socialized electricity
Public Health - licensing, inspection and regulation of restaurants, food supply, water supply, sewer and waste systems, health service facilities, etc. = socialized health control
Emergency Services - police, fire, ambulance (in some jurisdictions fire service is voluntary and ambulance may be private) and FEMA (Federal Emergency Management Agency) = socialized emergency assistance
Postal service - supported by usage fees, stamps, etc. = socialized mail
Air Traffic Control - supported by airline fees and passenger charges = socialized air control
National Parks and National Forest system - supported by entrance fees = socialized wilderness access
River Traffic Control - supported by usage fees = socialized river control
Coast Guard and Lifeguard service on public beaches = more socialized emergency assistance
Public Transport - some bus and train services are publicly-owned = socialized transport

One noticeable exception is the so-called health service (which is really sickness service and has little to do with health.) The medical facilities and medical services are private for-profit, as is the insurance apparatus that pays for it - a system that doubles or triples the cost to everyone involved.

Yes, America is a highly socialized nation, but - as you say - not anywhere close to communism, which is a totally different concept.

[greenoak]

bill, thats not my goal..and im not realistically on that track and never was and i dont feel bad about it....i would like to hit 1 million a year in sales tho!!! .
.. but i hope you make it...

[billbenson]

Thanks Ann.

It is an attainable goal though. And you don't necessarily need to have a large business with a lot of employees to do it. I suspect you have been conservatively saving money over the years that you have had your business and don't really even need to think in those terms to have a comfortable retirement. I do unfortunately. And I see a path there!

[greenoak]

no easy retirement plan...but i guess you are right , maybe i am comfortable with the income and all that we have at this point... my goals have been more about doing my own thing and growing our business.... ... ......
im working hard for 10% growth....which would be fine.... i dont w ant to do the things that might lead to being a big national thing...i would rather have 10 workers that 100....that would be a whole different life and business plot...im not up to that...i live in a woods across from our store out in the country!!!! and no boss.... its nice....even better would be making this income with 2 workers...lol