Too Rich To Be Poor-Mouthing?
Michelle Singletary had an interesting column this past Sunday (Too Rich To Be Poor-Mouthing?), if only because it presents the unthinking response many people will give when a person of wealth suggests they have money problems: "I'll take those problems."
Ms. Singletary recounts “a throw-down between the classes” that overtook an online chat she recently hosted.
The fight -- er, discussion -- started when a participant with a household income of just over $200,000 had some budgeting concerns.He wrote: "My wife and I both have 'good gub'ment' jobs. We both earn low six figures. We have just under half a million in TSP [Thrift Savings Plan, the retirement program for federal employees]. We have two kids in private school and one on the way."
The reader went on to say that the couple are putting money in two 529 plans and will set up a third account when the baby arrives. They have a reasonable mortgage because they bought their house before the hike in home prices in the area. They have no credit card debt and one auto loan, with two years left to pay on it.
"But we spend so much money on all of these things -- tithing (non-negotiable), 15 percent TSP, private school, etc., that we don't have a penny saved for a rainy day or life happens [fund]. Neither of us appears to be too worried about that, although we know we should start banking some. Something always seems to come up when we try. What do you recommend?" . . .
[S]oon comments began to flood in accusing this man of whining about his economic status. . . . One participant sarcastically referred to the couple as "the poor little rich family." [Another said]: "Those of you 'struggling' on $200,000 a year just need to think about how you would make ends meet if you only had $40,000 a year. As far as I'm concerned once you get into the six figures, you've lost your right to complain about money unless you've suffered a catastrophic emergency."
Singletary surmises that “what caused the indignation is the fact that many high-earning people are living above their means.” I do not doubt that there is some truth in this assumption. But I suspect that there may be something else contributing to such indignation: an unstated acceptance of the great lie that “life would be better if only I had more money.”
To reveal the falsehood, we might consider the stories of those “blessed” with sudden wealth: lottery winners and trust-fund children. Lottery winners find themselves besieged by friends, family, investment advisers and scam artists. They instantly find themselves with the means to feed the beast of self-indulgence that many of us share, to one degree or another – self-indulgence that can lead to self-destruction. Run a Google search for “lottery winners,” if you need some reminding of the troubles these folks' encounter. Wealthy heirs not only face similar temptations, they may have to do so in emotional isolation, wondering their entire lives whether anyone would love and accept them apart from their money. Consider the misery of Barbara Hutton, the very first “Poor Little Rich Girl”: seven marriages and seven divorces, what more need be said?
Consider also that research is now showing that once a nation’s GDP passes $10,000 per person (or about one-third of the level now enjoyed in the U.S.), further increases in income fail to yield increases in happiness.
Yet, we are so easily duped by the lie. We measure the health of our nation based largely on economic growth and earnings. We tend to treat people with more money with greater respect, honor and civility. And we treat as ludicrous the notion that someone earning six figures could have any legitimate fiscal problems. We’re so ready to say, “Yeah, right, I’ll take his problems any day.” I think we’d be wise to be more careful what we wish for.