When You Are Full - You Are Full

With the publication of the 2013 Forbe's list of Billionaires, there have been some rumbles of concern about social unrest caused by growing income inequality.

I still think we are focusing on the wrong metric. Why is the conversation not about consumption equality? The truth is that there are certain things that reach a roof in terms of how much wealth can buy you, and then you start moving into the upper parts of Maslow's hierarchy of needs where wealth doesn't actually mean that much. The biggest risk to someone's wealth is when their friends or neighbours do VERY well. It makes you feel like you need to do something differently, like your good isn't good enough. Taking a step back helps.

No matter how wealthy you are, you are likely aiming for a good nights sleep. That is a third of your life if you manage a solid eight hours. It is worth saving for an investing in a high quality bed, clean sheets and a bedroom that is protected from the elements and warm. Someone earning $50,000 a year can likely achieve this as well as a millionaire, or a billionaire.

When it comes to food, there is also a limit to how much you can eat. Beyond that, it doesn't add to your happiness. What you eat can become more expensive, but not necessarily better. The story may become better... but you can think of that as wealth redistribution. The rich may enjoy spending far more than the cost of something to produce because of a fantastic story. The seller gets paid for creating a pleasant psychological picture. Everyone wins.

I think it would be great if we changed our focus from even distribution of wealth to alleviation of absolute poverty. There are far more gains to be had from preventing someone from starving and providing access to warm safe places to sleep than worrying too much about how wealth is distributed. The wealthiest aren't spending most of their wealth. It is most likely invested in productive assets that grow if they produce things others want to consume.

The consumer is all powerful and you can only consume so much.