News
November 16, 2025
Wealth transfer happens every day — but it’s from the poor to the rich
'I wonder about the wealth transfer of poor to rich more than I do about wealth transfer from rich to poor. This takes place every day when salaried and hourly workers get paid less than what they are worth by the billionaires who control the pay,' writes an L.A. Times reader.
**Everyday Economics: Reader Highlights the Silent Wealth Transfer from Poor to Rich**
A recent letter to the Los Angeles Times has sparked a renewed conversation about the often-overlooked dynamic of wealth transfer in the United States: the flow of money from lower-income earners to the wealthiest individuals. While discussions about wealth redistribution often focus on potential government programs aimed at aiding the less fortunate, this reader points out a more subtle, yet pervasive, mechanism at play within the existing economic structure.
The core argument centers on the idea that many salaried and hourly workers are not compensated fairly for the value they generate for their employers, particularly the billionaires and large corporations that control their wages. This discrepancy, the reader contends, effectively constitutes a daily transfer of wealth from those who need it most to those who already possess substantial fortunes.
Imagine a retail worker who consistently exceeds sales targets, contributing significantly to the company's profits. While they receive a paycheck, the difference between the revenue they generate and their actual compensation contributes to the overall profitability of the business, ultimately benefiting shareholders and top executives. This principle extends across various industries, from manufacturing to technology, where frontline employees often play a crucial role in driving company success but receive a comparatively smaller share of the financial rewards.
This perspective raises important questions about the fairness of current labor practices and the distribution of economic gains. Are wages keeping pace with productivity? Are workers receiving a sufficient portion of the value they create? The reader's letter suggests that a deeper examination of these issues is warranted, highlighting a potential imbalance in the economic system that contributes to the widening wealth gap. The everyday transactions of labor and compensation, often viewed as simple exchanges, may in fact be perpetuating a system where wealth is consistently channeled upwards, further enriching the already affluent at the expense of those working to make ends meet. The letter serves as a reminder that wealth transfer is not always a grand, sweeping event, but can also occur through the accumulation of small, daily discrepancies in compensation.
A recent letter to the Los Angeles Times has sparked a renewed conversation about the often-overlooked dynamic of wealth transfer in the United States: the flow of money from lower-income earners to the wealthiest individuals. While discussions about wealth redistribution often focus on potential government programs aimed at aiding the less fortunate, this reader points out a more subtle, yet pervasive, mechanism at play within the existing economic structure.
The core argument centers on the idea that many salaried and hourly workers are not compensated fairly for the value they generate for their employers, particularly the billionaires and large corporations that control their wages. This discrepancy, the reader contends, effectively constitutes a daily transfer of wealth from those who need it most to those who already possess substantial fortunes.
Imagine a retail worker who consistently exceeds sales targets, contributing significantly to the company's profits. While they receive a paycheck, the difference between the revenue they generate and their actual compensation contributes to the overall profitability of the business, ultimately benefiting shareholders and top executives. This principle extends across various industries, from manufacturing to technology, where frontline employees often play a crucial role in driving company success but receive a comparatively smaller share of the financial rewards.
This perspective raises important questions about the fairness of current labor practices and the distribution of economic gains. Are wages keeping pace with productivity? Are workers receiving a sufficient portion of the value they create? The reader's letter suggests that a deeper examination of these issues is warranted, highlighting a potential imbalance in the economic system that contributes to the widening wealth gap. The everyday transactions of labor and compensation, often viewed as simple exchanges, may in fact be perpetuating a system where wealth is consistently channeled upwards, further enriching the already affluent at the expense of those working to make ends meet. The letter serves as a reminder that wealth transfer is not always a grand, sweeping event, but can also occur through the accumulation of small, daily discrepancies in compensation.
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Business