Income inequality

A number of politicians running for president are now talking about income inequality. Most everyday citizens agree that CEO’s making over $10 million including bonus is too much. Many CEO’s make up words of $100 million. Others such as Floyd Mayweather earning $150 million for a one hour fight. There are soccer players and basketball players who make over $50 million per year. Movie stars like Robert Downey Jr who made $75 million last year and some hip-hop guy named Dr. Dre earned $620 million last year selling his company. There are many young dot com wizzes who make billions. What all of these rich people have in common is that they can only do three things with the money. The can save it, spend it or give it away. If they save it they do not put in under the mattress but they bank it or invest it. When they spend it, say on a house, they put tradesmen to work and they purchase lots of household items which provides jobs in the homebuilding business. If they save it, banks loan it out to help other businesses and if they invest in stocks and bonds they provide capital for other companies to grow. And finally if they give it away which many do they help the various charities. If the public agrees that these people have too much money and tax laws are changed to take some away, what will happen to it? Today there are 150 million people working and 90 million who are of working age but not working. The total income in the United States is 15 trillion and the top one percent gets 3.3 trillion. If the government takes one half of what these rich folks earn and gives that to those 150 million who are working they will each get $11,000. If the beneficiaries include the 90 million who are not working, each will received $7,000. While this will be a nice bonus many of these people would rather have a job that paid them a little more and those not working might prefer just having a job period. Is concentrating on inequality causing the country to take its eye off job creation?