Money talk
Jan 29, 2014 | 1243 views | 0 0 comments | 90 90 recommendations | email to a friend | print
Dear editor:

The rich get richer and the poor get poorer? Is that true?

Mr. A is making $ 30,000 a year in New York. By American standards he is considered poor, although he probably has a television set and a cheap cell phone. He is probably on some government programs like food stamps.

He can not afford medical insurance, but when he gets sick he walks into an emergency room and gets the best medical attention in the world for free. On a world standard he is in the top 10 percent of the richest people on earth.

Mr. B is better off and he saved $1000. He took a risk and invested the $1,000 and was lucky to double his money. Now he is twice as rich as Mr. A. Did Mr. A get poorer because Mr. B got richer? No he did not get poorer because Mr. B doubled his money.

And Mr. B invested his money in the success of a company that was able to hire an employee at an entry level job and a friend of Mr. A got that job.

Mr. A is getting poorer, but why?

The government monetary policies promoting inflation reduces the purchasing power of all money. Mr. A must now pay more than $30,000 to buy the same things that he was able to buy the year before.

Who is the villain, the free market or the governments manipulating the market?

Sincerely,

John Procida

Flushing

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