Did you know that the average low-income family today has a better quality of life than John D. Rockefeller, the richest man in the world a century ago? To put it into perspective, John D. Rockefeller was richer than Elon Musk today. It might sound unbelievable, but when you compare what’s available today to even the wealthiest individuals of the past, the difference is huge, we are much richer today.
The Illusion of Relative Poverty
Despite great advancements in technology and living standards, many people today feel that they are struggling. This is mostly due to their relative poverty—the idea that, despite most people being better off in society, the huge wealth gap between the rich and the poor makes them feel worse off. Our wealth continues to improve year after year, but our expectations grow at a faster rate.
In reality, even if you’re struggling financially, you likely have access to:
- The internet and smartphones
- Modern medicine and vaccines
- Air travel
- Refrigeration and air conditioning
- Streaming services and on-demand entertainment
These are everyday conveniences that were unimaginable to the wealthiest people a century ago. Rockefeller himself never had antibiotics, air conditioning, or even a smartphone—but today, billions of people do.
Innovation vs. Wealth Redistribution
Andrew Carnegie was one of the richest men in the U.S. He was the creator of U.S. Steel. His wealth was comparable to that of Bill Gates.
A reporter was criticizing Carnegie for being so wealthy while there were so many poor people in the U.S. In response, Carnegie did a quick calculation, dividing his wealth by the U.S. population and gave the reporter his share, which came out to only a few dollars.
In November 1990, Margaret Thatcher, the Prime Minister of England was having an argument in the House of Common.
She said:
They would rather the poor were poorer, provided the rich were less rich.
She argued that policies proposed by the opposition focused too much on reducing wealth disparities rather than improving overall prosperity. Her point was that equality of outcome was prioritized over economic growth, even if that meant making everyone worse off.
The real reason life continues to improve is economic growth and technological advancement, not wealth redistribution. Here’s why:
- Raising Living Standards – Innovation creates better products, services, and healthcare for everyone, not just the rich.
- Declining Costs of Essentials – While some things (like housing and education) have become more expensive, many essentials—food, clothing, and consumer electronics—are drastically cheaper.
- Expanding Opportunities – Today, anyone can start an online business, invest in stocks, or work remotely—opportunities that were once only available to the elite.
The Right Focus: Growth-Driven Prosperity
Instead of focusing solely on reducing inequality, the real goal should be expanding opportunities. By investing in education, entrepreneurship, and technology, we raise the standard of living for everyone.
Think about your own financial journey: have you benefited from the stock market, building businesses, or leveraging technology? These are all things that weren’t accessible to most people a century ago.
Wealth and Happiness
Research consistently shows that wealthier societies tend to be happier. That’s why people from poorer nations aspire to live in richer ones. Economic growth doesn’t just make people wealthier—it also improves health, longevity, and overall well-being.
Final Thought
The everyday person today enjoys more convenience, knowledge, and opportunity than even the wealthiest individuals of the past. Instead of feeling poor compared to billionaires, we should appreciate just how much progress has been made—and continue pushing for growth that benefits everyone.
Would you rather live as a billionaire in 1924 or an average person in 2024?
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