Written by Chongrong Wang

Overview

The impact and contribution of the top 1% is an often debated and a complex argument, while their contributions are significant but it does not necessarily mean they contribute to the economy more than the Middle Class, due to the Middle Class’s sheer size are the backbones and drives the consumer spending and stimulates the economy. However some argue that the purchasing power and the jobs are created by the Upper Class who are the real drivers of the economy and innovation. This essay will explore both sides of the argument with creating a conclusion fair and thought through.

 

Negative Impacts

One common argument presenting the Upper Class (people with annual income greater than $819,324 according to the Economic Policy Institute) is that the concentration of wealth on a nation’s economic spectrum will often lead to inequality, biased policy making and an uneven playing field. Research and evidence shows the disproportionate influence of the top 1% on policy making such as

 regulations and tax policies which are unfavourable for the Middle Class often benefiting the policy influencers.

 

Additionally, when making their money, business owners and entrepreneurs often find loop-holes and discover many ways to cut the cost of production benefiting themselves and ignoring the consequences of using harmful products. With many lawsuits and scandals in the past decade relating to food quality and safety such as the US Chipotle Outbreak (2015) and the US Cantaloupe Outbreak (2011), it has been proven that business owners would do just about anything to cut costs, ignoring the consequences of the employees and consumers.

 

Positive Impacts

On the other hand, evidence and points stating that the Upper Class’s contribution to the economy and population is unavoidable. Firstly the Upper Class has been historically famous with their generous philosophical donations contributing to society. Evidently Rockefeller’s initial donation of 1 million dollars (equivalent to 35 million dollars today) have completely reformed or even started the US education system. With donations over the years after his death accumulating to over 180 million dollars, this philanthropic action is undeniable, creating schools and higher education (University of Chicago) aimed at the Middle and Lower Classes.

 

Furthermore the top 1% needs to be recognized with their job creation. When accumulating their fortune and extracting money out of the economy, it is impossible to do it alone, for this reason the Upper Class created the majority of jobs in most countries. For example, in the United States, about 70% of the population are employed privately, without the enterprises tens of millions of the population would be unemployed and ultimately create more inequality.

 

Lastly for enterprises to make money, innovation is required and ultimately their desire for more money is what drives innovation and leads us into the future, accelerating our progression. Without innovation and genius ideas to extract money, our economy would collapse, our lives would be very difficult and different.

 

Conclusion

In conclusion, the consequences and hazards of the Upper Class have been outweighed by the economical impact they contribute to our world, proving that the top 1% benefit more than themselves when making money.

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Sources:

https://en.wikipedia.org/wiki/List_of_countries_by_public_sector_size 

https://xtalks.com/10-of-the-worst-food-safety-scandals-in-recent-history-3435/ 

https://www.investopedia.com/financial-edge/1212/average-net-worth-of-the-1.aspx