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Grant Cardone

Grant Cardone

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Are the Rich Greedy?

Posted: 04/24/11 08:25 PM ET

Are the rich really greedy or is this just what those that aren't rich say about those that are? And can a person's income or net worth determine whether that person is greedy or not? When a person is promoted from a job paying $60,000 a year to one paying $250,000, does he/she suddenly become consumed with greed?

It is preposterous to think that that amount of money a person earns or the wealth they control have anything to do with greed! Greed is defined as the excessive desire to possess wealth or goods with the intention to keep it for one's self. Greed by definition is then determined by desire and intention not by a person's net worth.

It seems that the rich are most often labeled greedy by two groups:
1) those that haven't created financial success.
2) those with political agendas.
This labeling is created from myths and misinformation about the rich. The misconception that the rich don't help or don't do their part or that they are greedy only demonstrates a misunderstanding, even an ignorance about the rich and wealth. This thinking stands in the way of entire classes of people from ever improving their financial situations.

The Obama administration asserts that financial literacy is a 'national crisis'. Surveys suggest 75% of all workers don't know how much money they need for retirement. Multiple studies of 12th graders produced consistent failing scores of only 50-55% on practical money questions. In my seminars I often hear, "if I had $1 million I would use it to help the less fortunate." I always respond, "The most effective way to help the less fortunate is to quit being one of the less fortunate!"

If you don't come from wealth, I didn't, then the only way to create it today is through hard work, risks, entrepreneurial effort, innovative thinking and by saving and investing! Those that create wealth honestly should be admired not labeled. Go to any third world country and financial success is admired and perceived as an ethical issue -- a duty, obligation, even a responsibility.

Be honest, do you have a resentment of rich people? Do you believe rich people are greedy, shallow, unhappy and dysfunctional? Do you believe that the rich got rich by stepping over others? Do you believe the rich made money their god or that they don't care about the less fortunate? If you harbor any of these beliefs creating financial security for yourself and your family is going to be almost impossible!

And what about all the misinformation and myths about the rich. Consider the most simple of facts that if you are reading this from a computer you are rich compared to most people in the world. 1/3 of the people on this planet live on less than $166 a month making even those at poverty levels in the USA wealthy by comparison! The median income in the USA is $44,000 a year but the world median income is $2000 a year. The next time you say, "the rich are greedy", by world standards, you are talking about yourself!

Also, we determine who is rich and who is not. You may resent the hedge fund guys on Wall Street or the CEO's of the big banks but it is you and me investing in their funds and banks. Steve Jobs' net worth is in the multi-billions and was determined not by him but by all of us buying the products he has been responsible for creating. Not even a criminal, is able to create riches without the help, trust and support of the marketplace.

Others suggest that the rich are greedy and don't give their fare share. The top 1.4 million earners in 2008 paid over 38% of ALL the income taxes collected by the IRS. Consider, that just those earning incomes over $1 million/year were responsible for over 50% of all charitable donations?

I have been studying the wealthy for years and one of the biggest differences is a willingness to work with no pay in hopes of some bigger payoff later. The poor and middle class see working for nothing unthinkable. At the age of 29 I went into business for myself and my income dropped by 70% to less than $35,000 a year for the first three years until I figured out how to make it successful. Minimum wage may have made a bigger middle class, but it also trapped millions of people to think in terms how much they get paid per hour rather than how to create their financial freedom.

Before you jump on the 'rich people are greedy' bandwagon consider the facts:
1) Rich has nothing to do with greed
2) They pay most of the taxes collected
3) They are responsible for 50% of all charitable donations
4) Resenting the rich guarantees that you will always be poor or that you have a political agenda!

Grant Cardone, NY Times Best Selling Author
The 10X Rule-The Difference Between Success and Failure


 
 
 

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01:12 PM on 04/26/2011
In 1848 a group of people had enough with being poor while others got fat. They didn't think about the finer points you have carefully put into your article. The history is similar enough to today's situation that you may want to look at ways to address the anger leveled at your peer group. I do agree with you that the rich as a group aren't evil. Like any group, a few bad apples ruin the bunch. Too bad the group you are talking about is highly visible, and the other 95% of the population dislikes them.
06:40 PM on 04/25/2011
I think when talking about a topic like this, people tend to associate with the Bernie Madoffs, Jeff Skillings, and Allen Standfords. They all shared criminal greed. The large majority of rich/wealthy are usually just consumed with the desire to achieve success in whatever they do.

Lets say I create a widget one night in my dorm room, and I think that it will solve the problem of "x" for everyone in the nation. I then go on to the develop, market and then sell my product to lets say 10 million people, which happens to take my net worth to $50 million. Does the fact that I am worth $50 million change the fact that back in my dorm room I knew my product could help everyone in the nation?

Does it make me greedy that I still feel like everyone in the nation could benefit from having my widget even though I already have created a tremendous amount of wealth?

The problem here is the small few, and anytime you try to classify a certain groups actions (like "the rich") based on the small few, you can get into trouble. Unfortunately the implications of the small few in financial institutions create billion dollar problems that impact the majority.
03:55 PM on 04/25/2011
I like the point, Grant. If you look at all rich people as being rich, greedy ogres, you would definitely not aspire to being rich yourself. By adopting this as a stereotype and fixed idea, you keep yourself in the "definitely not rich" financial category so you can consider yourself "good" and "charitable." The ideal situation is not to pin yourself down with these stereotypes on either side of the coin. This way you are free to be the best you can be.
03:36 PM on 04/25/2011
*Sidenote: Has anyone seen the movie or read the book titled 'Atlas Shrugged'? If so, please share your observations with the book/movie to this article.
03:21 PM on 04/25/2011
"4) Resenting the rich guarantees that you will always be poor or that you have a political agenda!"

That's the most important thing to take away from this. Wealth and Riches are first and foremost a state of mind. If negative thoughts about money are running rampant through you're mind then you are self sabotaging yourself, your own wealth and your ability to create wealth.

Blaming someone else for your lack of anything (including money) relieves you from accepting your responsibility and role in attaining wealth. And to focus on lack and want only assures that you will attract more lack and wanting into your life.

Having a lot of money doesn't make you greedy. How you go about getting money and what you do with the money, once you get it, is what makes someone greedy.
01:43 PM on 04/25/2011
There's rich and then there's wealthy...

It typically takes time to attain wealth, but becoming rich is available for those who want it bad enough.

Kobe Bryant, the Kardashians and Leonardo DiCaprio are rich, the person who pays them is wealthy.

Of course theres' always the exception with wealth, as in Mark Zuckerberg's case... although you can't say he didn't work hard take a risk and have a little entrepreneurial flair.
nothingchanges
too soon old, too late smart
11:34 AM on 04/25/2011
I grow increasingly weary of the "if you worked as hard, studied as hard, and did things the way I did" mantra, "you'd be wealthy too".

Sorry to rain on anyone's parade but the there are two sad facts to contend with. Luck, and statistics.

Speaking as one who has been there, it doesn't matter how smart you are, or how hard you work, if you are "unlucky" enough to have been the victim of a serious injury or disease in this country, the odds of you getting or maintaining wealth are exceedingly slim. The average General Practitioner (Doctor) has a relatively high IQ, a very expensive education, works long hours, and makes about $175,000 a year providing health care to those in need. The average Health Care Insurance CEO makes closer to $15,000,000, for denying those same services, some make nearly double that.

Statistics....................http://www.huffingtonpost.com/2010/03/17/social-immobility-climbin_n_501788.html

The U.S. is not the "land of opportunity" it once was. You can make up your own mind who is at fault. In my personal opinion a large (in our case extremely large) disparity of wealth is not healthy, for a country, it's citizens, or it's economy.

"I worked hard for everything I have"..........show me your hands...........why no callouses? why no blisters?
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Jim Valko
08:06 AM on 04/25/2011
Good article Grant. A question people should ask themselves is this: What do the "rich" do with their money? Do they hide it under their mattress? People don't have money, they CIRULATE money. The rich buy property from real estate agents, they put money in the bank which is used to give loans to people to buy houses, they employee, sometimes, thousands of people, they buy cars, in short, they distribute their wealth throughout the economy. The middle class is the biggest recipient of wealth from the wealthy. Another thing I might add to your article; there is a difference between being rich and being dishonest. It's the dishonest (criminal) rich that give rich a bad name, just like criminals can give anything a bad name. You democrats that hate the rich, don't forget Obama is a millionair¬e. His first year in office he reported 5.5 million in income. Just like anyone else, what’s important is that he made the money honestly and he pays his fair share of taxes. If someone has a problem with the rich not paying taxes, but they are doing it “legally” that somone should attack the IRS for the dishonest system, not the rich for doing what’s legal. Check out fair tax dot org.
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tacevad
American SS Card Carrying Socialist
07:57 AM on 04/25/2011
are all rich greedy? no, are all the greedy rich? no. Those questions blunt the fact that it is those who belong to the group, THE GREEDY RICH,who are causing misery in this Country.
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Enock Zamora
KARMA
11:40 PM on 04/24/2011
There is nothing wrong with being rich unless it is "like a thirst that cannot be quenched" and then feel like they are going to die unless that have it all. Then that would be called evil when it then takes from those that have little.
11:38 PM on 04/24/2011
1) If being rich has nothing to do with greed, then being smart has nothing to do with education. 2) The wealthiest people pay the majority of taxes because they control an overwhelming majority of our nations money. The discouraging thing is the ever decreasing rate at which the wealthiest people and corporations are being taxed (Bank of America, GE I'm looking at you). 3) I would hope that the obscenely wealthy would indulge in philanthropy since they have the means. 4) You are correct I do have a political agenda. I long to see the day when the golden rule no longer applies. That being that those who have the gold makes the rules...I do not enjoy watching legislation pass that has no goal other than to help the financial interests of families like the Fanjuls and the Koch Family. Hard work may have gotten these two families wealth...but it is shady political strategies that intend to fix a game that is already stacked in their favor. The wealthiest 1% have a nuclear arsenal, while the rest of America is armed with tooth pick. Pointing your finger at the poor and saying "you are poor and will always be poor because you resent the rich" is obnoxious to say the very least.
11:10 PM on 04/24/2011
From personal experience (and I am not poor), I think that the wealthy people I know are greedier than those I know who are much poorer. The wealthy make charitable donations that are tax breaks; they have tax loopholes so that people like Warren Buffett pay less taxes than his receptionist; and they have often made more money by buying and selling as if in a game in which they win/others lose. The poor do not have the means to "work for nothing." They have families to support, and mouths to feed. I live in a wealthy neighborhood and in a town in which the postal workers have food drives, leaving out brown bags for us to pick up and fill, and then leave for them to collect. I filled two brown bags. On the day that the mail man picked them up, there were three bags only from an area that has over a hundred homes. And you say wealthy people are charitable! My sister years ago went on a medical mission to an Eastern European country that had just been opened up to the West. She and her cohorts came back changed people. Why? Because they met people who had nothing but the clothes they wore, but they would have given them away if it would have helped! You and I know nothing about charity. We know a lot more about greed!
reallybarb
I know I am but what are you
11:09 PM on 04/24/2011
The top 10% control 90% of the wealth in this country but only pay 38% of the income tax, and that's ok, really? Wealth inequality in the United States is at a level not seen since the Great Depression and politicians lobbyists and most of the right wing seem to be doing everything they can to make sure that the middle and working class pay more and get less and never cash into the American Dream.

www.youtube.com/watch?v=acLW1vFO-2Q