We all have our own visualizations of the wealthy. Usually a male, over weight, pin stripped suit, sucking on a fat Cuban cigar, with an evil smile. It is safe to say, that is the image that the Obama Administration, the liberals and the majority of Hollywood celebrities (who are well, what we like to call mega-rich hypocrites) have given to the American public. The wealthy rarely ever fit this stereotypical profile, due to the fact that there are more millionaires in the world today then ever before. The term millionaire no longer has the glamour attached to it, like it has in the past. Today, the world billionaire, tycoon, magnet, and titan have the stereotypical feel, as described above, and one might think of a self-promoting pompous ass, like Donald Trump. In today’s society, the wealthy are made to feel embarrassed about their wealth, ashamed of their success, as if they hadn’t worked for it. The wealthy only have you and I to blame: as consumers who buy their products, as employees who increase productivity and efficiency, and as investors who give them our earned money to secure our future. Maybe we should recognize that the wealthy also need a lot of help to where they have ended up today, and maybe we are the ones who gave it to them.

To clear the confusion about the wealthy being evil, selfish, greedy and corrupt, we all need to look at what they actually do for this country, for the economy, and for you and I. I’ve met plenty of individuals and professionals who are jerks not because of the size of their wallet, but because they have miserable personalities. The truth is that the wealthy have and always will employ, invest, spend, donate, be taxed, and participate in philanthropy to assist the less fortunate more than other, less capable, citizens.

We have all given to charities and made donations before. Although the individual contributions are small, the sum of a large number of small donations can become rather substantial. If you investigate large funded programs and newly created nonprofit establishments, you will notice the exurbanite endowments used to support them. These large funds usually come from ultra-wealthy individuals and corporations. The Bill & Melinda Gates Foundation primarily aims globally to improve healthcare and reduce extreme poverty, while also focusing on educational opportunities and access to information technology in the United States. In 2006, American investor, businessman and philanthropist Warren Buffett committed $31 billion to the endowment. Indian businessman and philanthropist Anil Agarwal recently donated $1 billion to establish Vedanta University in Orissa, India, which will serve as an elite private research university that he hopes will rival Stanford, Harvard and Oxford. Corporations also become involved in such ventures as well. Goldman Sachs is currently developing a $100 million program to educate women in Africa, Asia and the Middle East in business and management. According to the National Philanthropist Trust (NPT), the top 5 largest private foundations are all individually greater than the top 5 largest corporate grant makers, non-profit organizations and community foundations.

According to www.BarackObama.com 99% of all employers, or firms, are small businesses. A small business is defined as an organization with 500 or less employees. What should be paid attention to within that impressive fact, is who in that 99% of firms employs the most amount of people. According to U.S. Census Bureau of 2002 (released every five years) shows that firms who had revenues of $1 million to $4.9 million, $10 million to $49.9 million, and $2.5 billion or more, represented the three largest employment populations totaling to roughly 58 million of the about total 112 million full time and part time employees, thus employing 51.6% of all paid employees. Separately, companies with annual revenues of $1 million or more employed 84.4% of full time and part time employees, or roughly 95 million of the total 112 million paid employees in the United States.

Have you ever been employed by someone who is poor? These stats suggest that you probably have not. And if you are one of the 16% who haven’t hit that $1 million revenue mark, or do not yet consider yourself or other employers to be wealthy, well then, god forbid your business expands, your revenues sky rocket, you hire more people, and you accidently become wealthy yourself.

Studies have shown that the US marginal propensity to consume (MPC) ranges from 0.92 to 0.94, meaning that the US public spends about 92-94% of their disposable income (income after taxes) on consumption goods and saves 8-6% of it. Because the wealthy have more money to spend, they do not necessarily demand a noticeable amount of more items than a middle income earner, however, they do most often consume a higher quality product, and they upgrade it more frequently, than the average consumer. As the population of wealthy individuals rise, so will demand for higher quality products. As more high quality products are produced to meet demand, prices will fall as the products are being sold at unusually higher volumes. This has enabled products such as high-tech electronics to become affordable even when they are of high quality and high performance.

Along with increasing consumption based on income, the 2002 U.S. Census shows that the larger the net worth of a household, the greater the percentage of their assets will be placed in interest earning assets at financial institutions. Net worth, also called estate, is the sum of an individual’s assets (legal rights, interests and entitlements to property of any type) minus all liabilities. Those with a net worth of $50,000 to $99,999 hold 63% of their assets in financial institutions, while those with a net worth of $500,000 or more hold 91.2% in financial institutions. In the same study, those with a net worth of $50,000 to $99,999 invest 23.7% of their assets in stocks and mutual funds, compared to those with $500,000 or more who invest 75.7% in stocks and mutual funds. These numbers tell us that the more money an individual has, the higher the percentage they put into the capital markets. As the wealthy put their money into the capital markets, it results in corporate, shareholder, investor, and ultimately, economic prosperity. If the income or net worth of those who invest most declines, the markets will weaken. This has led to a belief that simple supply and demand fundamentals move the markets. Because a smaller population of individuals owns a large percentage of the total assets in the capital markets, large volumes of asset transactions fluctuates prices in the short term. Simply put, the money we have made in the past in the capital markets was because a wealthy individual, or several wealthy individuals, dumped millions of dollars into the same investment we also happened to own.

Another reason to embrace the wealthy is that they pay the most taxes. Although they earn their $1 million salary, just as I earned my $7.50 hourly wage as a factory worker this past summer, they give a higher percentage of their money to the IRS. According to the National Tax Payers Union, in 2006, the top 1% of income earners paid 40% of all tax revenues, and the top 5% paid 60% of total tax revenue. The bottom 50% of income earners paid 3%. I do not disagree with a progressive tax system; however, I think that everyone should acknowledge the fact that the more money you make, the more the Federal government will take, and, according to Vice President Biden, the more patriotic you will be.

Do not admire or despise the wealthy for their material wealth. Admire the wealthy for their passion, their perseverance, the opportunities they create, and their ability to strengthen their country. Before you knock the wealthy, let it be known that most of them were exactly like you and I: young, energetic, and optimistic about the entire world which lay in front of them, living their life to pursue their own dreams. What they have accomplished has been the result of others becoming prosperous as well. With wealth comes availability and choice – two things everyone can and could entitle themselves to, but must earn.

Mike can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it