Hard work = $250,000 ?

iVillage Member
Registered: 07-11-2006
Hard work = $250,000 ?
376
Fri, 10-24-2008 - 9:07am

I’ve read repeatedly that the $250,000 is hard earned money that the government has no right to tax. Personally, I don’t believe that hard work consistently results in high salaries and I’m not convinced that people who make more money work harder or deserve more than most people. Most people, I believe, do work hard and most people are rewarded with 25,000 – 45,000 salary. Not all some hard workers make more and some make less. What do you think? Is the Just World view valid?

http://www.princeton.edu/~rbenabou/beliefs7csend.pdf

most people have a strong need to believe that they live in a world that is just, in the sense that people generally get what they deserve, and deserve what they get. When confronted with data that contradicts this view they try hard to ignore, reinterpret, distort, or forget it —for instance by finding imaginary merits to the recipients of fortuitous rewards, or assigning blame to innocent victims.

Because of their imperfect willpower, individuals constantly strive to motivate themselves (or their children) towards effort, educational investment, perseverance in the face of adversity, and away from the slippery slope of idleness, welfare dependency, crime, drugs, etc. This is another recurrent finding from the sociological evidence. In such circumstances, maintaining somewhat rosy beliefs about the fact that everyone will ultimately get their “just deserts” can be very valuable. Furthermore, if enough individuals end up with the view that economic success is highly dependent on effort, they will ultimately represent a pivotal voting block, and set a low tax rate. Conversely, when individuals anticipate that society will carry out little redistribution, the costs of a deficient motivation to effort or savings are much higher than with high taxes and
a generous safety net. Each individual thus has greater incentives to maintain his belief that effort ultimately pays, and consequently more voters end up with such a world view.

For instance, data from the World Values Survey shows that only 29% of Americans believe that the poor are trapped in poverty, and only 30% that luck, rather than effort or education, determines income. The figures for Europeans are nearly double: 60% and 54% respectively. Similarly, Americans are more than twice as likely as Europeans to think that the poor are lazy (60% versus 26%).

Indeed, 59% of Americans agree or strongly agree that “in the long run, hard work usually brings a better life”; this view commands much less support in Europe, ranging from 34% in Sweden to 43% in Germany.

Is the “American dream,” according to our theory, just a self-sustaining collective illusion?

http://www.princeton.edu/~rbenabou/beliefs7csend.pdf

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iVillage Member
Registered: 07-03-2008
Fri, 10-24-2008 - 10:02pm

Do you know any teachers or college professors making 250,000 a year? I'm sure many Lawyers make that and then some, Dr's probably, but they have enormous malpractice ins to pay for. So who is making this big money, what do they do?


One person who comes to my mind is a School district Administrator in my area. He was working for another district and retired from there and is receiving a pension from them, plus collecting a salary and bonuses from the schoold district he works for now. Is he well liked? that's debatable. He does want to build another school and name it after himself, but the taxpayers will be paying for it. Nice-- Huh?

iVillage Member
Registered: 05-05-2008
Sat, 10-25-2008 - 10:36am
Yup. Not only unethical, but illegal. If a client were to complain about it, the offending broker
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iVillage Member
Registered: 05-14-2008
Sat, 10-25-2008 - 1:23pm

>> It makes the most sense to me that the people in the highest percentages had some lucky breaks along the way.<<

I don't see it that. Different experiences and knowing different people I guess. I see it as they very likely made sacrifices not made by others, delayed gratification with a goal in mind, stuck with a plan, and were able to see opportunities that others missed.

Unless you consider something like maintaining good health as "lucky". Because in many cases even those less lucky in that department are more "successful" in the earnings department than those who are.

iVillage Member
Registered: 05-14-2008
Sat, 10-25-2008 - 1:32pm
The self-employed. Those who really take responsibility for their earnings and don't rely on others. They do take the bigger risks and thus have the potential to reap the largest rewards. Small businesses are the backbone of America. I am just amazed even by the number of immigrants who manage to come over an establish successful businesses for themselves. But you can always chose to work for someone else--there is some security and freedom that comes with doing so.
iVillage Member
Registered: 05-05-2008
Sat, 10-25-2008 - 3:28pm
In theory... but a lot of people put blind trust in their FA's. Of course, they're pretty much all going to get their comeuppance now.

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iVillage Member
Registered: 07-11-2006
Sun, 10-26-2008 - 7:59pm
If the reason that some people deserve 250+ is that they put in long hours, go the extra mile, and make sacrifices, etc, then how come all people who do the same don't get 250+? What is it that the higher earners do that makes there efforts rewardable as compared to other similarly hard workers?

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iVillage Member
Registered: 08-25-2008
Sun, 10-26-2008 - 9:40pm

Because people are paid based on the value they create for those who pay them.


If, for example, you're a check out clerk in Micky D's, you can work 24 hours a day, 7 days a week, and you're not going to create $ 250,001 of value for Micky D's.

iVillage Member
Registered: 03-19-2003
Sun, 10-26-2008 - 9:45pm
With all this whining about how it isn't fair that people make more than $250,0000, about why can't I make it if they do??.....Since they make so much it's only fair that they share it with me........It's like we have turned into a country of 2 year olds!!
iVillage Member
Registered: 07-11-2006
Sun, 10-26-2008 - 9:52pm

>>Because people are paid based on the value they create for those who pay them. <<

As I've said before, that's just circular reasoning. If we have a system that is designed to benefit a select few, why not also create within the system something that requires the select few to acknowledge that benefit and make the profits that are exponentially high subject to exponentially high taxes?

Equally simple.

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iVillage Member
Registered: 07-11-2006
Sun, 10-26-2008 - 9:55pm

>>If you don't like your income do something about it! <<

My whole premise is that hard work does not bring high pay.

What are you suggesting that the average American do to make more money? The only things ruled out so far on this thread are long hours, sacrifice, etc.

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