We are in the midst of an economy so focussed on short-term profits and quarterly earnings, to move share prices, excluding all else, humanity has been completely removed from corporate America. When did we lose sight of people and planet?
We shouldn’t treat people based on the size of their bank accounts, or how much their last pay check was, nor should we treat our companies this way. We have a double standard when it comes the way we value our businesses and it’s polarizing and threatening the society we live in.
Corporate profits are at an all time high, 12.5%…”yeehaw” if you’re a shareholder, but if you’re on the other side of that, like 90% of working Americans, it’s not such a good thing. If 10% of the population owns 90% of the stocks, then it only makes sense they take a greater share of corporate profits – leaving less for the rest of society. Income Inequality Is Not A Good Thing.
I referenced a chart today about the relationship between income inequality and social problems. There were 21 countries on the chart. As you move from bottom left to top right, the worse it is. Where was the US on the chart? The US was “off the chart” too high and far right to even make it on the page. Income Inequality Is Not A Good Thing.
History repeats itself. The gap between the wealthy and everyone else will close, it always does and typically happens in 1 of 3 ways:
Income Inequality Is Not A Good Thing.
There is one other way. Increasing corporate social awareness of income inequality; moving the needle to better par the employees in corporate America, that is the CEO, corporate executives and everyone else. This would need tremendous changes in corporate behavior. It’s like an addict trying to solve their addiction – the first step is to acknowledge we have a problem.
So, are you supporting Inequality in America? Well, if you’re doing business with corporate America, and investing in companies that do not have initiative to impact more than just the quarterly earnings, than, yes – you’re supporting income inequality. It’s time to take a good look at the companies in which we invest. It’s time to look at more than just profits, but also people and the planet. Income inequality is not a good thing.
Charles Kochel is a second generation wealth advisor and third generation family farm operator. He is the founder of Yield Wealth Management, one of the first benefit corporations in Arkansas and one of the leading core impact investors in the south.
To learn more about Charles, Yield Wealth or set a time to visit, visit http://www.yieldwealth.com or email firstname.lastname@example.org. The articles written in this blog should not be construed as investment advise.