New Study Shows Rich People Need Money More Than Poor People
However, a new report released today by The Bowtie Institute demonstrates that the Times’ report misses a very basic principle: If the ultra-rich have more money, it’s because they need it more than everyone else.
“It’s a matter of simple biology, really,” states Institute Fellow Phineas Taylor Varnum, Ph.D. “In the natural world, the fatter you are, the more calories you need to maintain your weight. It’s the same with the rich. Our studies show that someone with a net worth of $1 billion needs an average daily income of $8.7 million just to maintain his economic status. The simple fact is, being rich costs money.”
The Institute’s study also reveals that being poor saves money. For example, a person working full-time at the minimum wage would earn slightly more than $10,700 a year, or about $7,000 below the official poverty line for a family of four.
“But these figures fail to take into account what I call the ‘McD Factor’,” says
Without a continued increase in the overall net worth of the top 0.01 percent, several vital industries would be imperiled. These include:
- Vacation homes
- Luxury automobiles
- High-priced escort services
- Conservative think tanks
“Grotesque Croesus-like wealth is the engine that drives the world’s economy,” notes
The Institute recommends the Bush Administration implement a new “Income Max” plan, where the top money earners receive all tax dollars paid by the other 99.99 percent.
© 2005 The Bowtie Institute: Putting the clothes on naked self interest since 2004
About the Bowtie Institute
The Bowtie Institute believes deeply in a return to