By Steve Levy
A lot of my friends have expressed to me their utter disgust that one of the world’s richest men, Jeff Bezos, just shelled out at least $25 million on his wedding. How insensitive and inconsiderate, they say. That money could’ve been put to much better use helping people.
But I asked them to slow down for a second and consider a different perspective.
First of all, it has always been embedded within our American freedoms that an individual is free to spend his or her money anyway they so desire, as long as it’s legal.
It’s a slippery slope when we dictate what they can and cannot spend their money on.
But there’s another reason why we should not look down on his spending. That’s the filtering-down effect it has on so many people. Bezos is not just flushing this money down the toilet. He’s spending it on a whole host of things that will endure it to benefit others.
According to Italy’s Ministry of Tourism, the wedding could generate an economic impact of more than $1 billion, equivalent to some two-thirds of the city’s annual tourism revenue.
The caterers will make enough money on this gig to pay their rent for the next year.
All of their working-class cooks and servants will make out quite well. Same goes for the bartenders, and even the guy who provides the porta-potties.
And what about all the security people who will make a week’s salary this one evening?
And then there is the private valet service that will be called in.
Then there’s the folks who produced the fireworks.
Then there’s the cleaning folks, and we’re not just talking about those who are already paid to service Bezos’ homes.
The shops in Venice owned by small business owners will profit handsomely from all the celebrity spending.
That’s the beauty of the free market. There is indeed such a thing as a trickle-down effect. We see that when successful people build big mansions in Southampton. Yes, we can begrudge them all of their fancy stuff, but when they’re constructing their home, they’re making laborers wealthier. Money is made by the realtor, the title company, the home inspectors, the attorneys and all their staff. And what about all the furniture companies that will be making out quite well due to this new home on the market? That’s called priming the prompt in a capitalistic system.
So don’t begrudge the successful when they spend money. Worry when they stop spending money.
As I noted in my book, Solutions to America’s Problems, the issue of income inequality shouldn’t be looked at how many billionaires we have, but rather how the middle and working classes are faring. Taxing billionaires to the hilt to lower their income and wealth is self-defeating if simultaneously there is a loss in income and upward mobility for the middle and working classes. On the other hand, if an across-the-board tax cut helps propel higher wages and employment for the average person (which occurred each time they were implemented in the Kenndy, Reagan and Trump administrations), who cares if Bezos is earning more as well?
North Korea has much more income equality than South Korea ( they are all equally poor) but who on earth would prefer the former?