I’m starting this here instead of in the pit, because it seems to have been brought up in a number of threads.
When can I be said to have “earned” money? If I steal it from you, I think we would mostly agree that I haven’t earned it. If I agree to build you a hot-tub for a thousand bucks and I build one that meets and beats your requirements, I would say that that is earned.
Personally, I don’t think of inherited money as earned–that doesn’t mean that the disposer automatically doesn’t have the right to give it to you, just that the inheritor didn’t do anything to earn it.
More to the point, I’ve known bosses who don’t do their jobs, don’t even show up, and make a wad of cash for non-performance. I wouldn’t say that their money is earned. Are they alone?
You earn money when someone voluntarily gives it to you in trade for your labor or the guarantee of your labor. A lawyer earns their retainer even when they do not represent you in court. I earn on-call pay even if the phone does not ring. Managers earn performance bonuses even if they are not actively managing. Hey, there have been many times when I wished management would just stay home and collect their paychecks!
One does not earn an inheritance, unless their were stipulations placed upon the bequest. Neither does one earn charity. That does not mean that one has no right to the fruits of those trees, however. People can give away money in whatever manner they see fit.
The best lack all conviction
The worst are full of passionate intensity.
*
I agree with Spiritus, with one exception–I’m not sure about the voluntary part. I think a strong argument can be made that a bank robber, who has accepted all sorts of risks and has labored extensively, has earned his money. He’s also earned a prison term, but that’s beside the point.
But that might fall under the umbrella of gambling. Does the mugger who gambles his health (if his victim happens to be Jet Li) and his freedom (if he gets caught) earn his money? How about the person who makes thousands of dollars at a roulette table? Or the day trader?
I haven’t thought this all the way through yet, so bash as you will. But I’m thinking that an element of risk can also constitute “earning” money.
I think “earning” in the social contract must involve a measure of good faith between both parties. The money must be given, not taken.
We agree that I will build a pond for your backyard for $450. I then work my fingers to the bone for three days building you a majestic koi pond. You pay me the money - I have earned it.
I have been scoping out the First United Bank of Zebulon for two weeks - drawing up floorplans, diagramming the electic grid, timing police response, noting when deliveries are made and employees take their breaks, etc. One rainy afternoon I march in and steal $750,000. I put much more work into this job than the pond design & installation, yet I earned none of it because it was given to me in good faith.
Not that I care in the slightest. Money is money, right? I just wouldn’t go around claiming that I earned $750,000 in those 14 days. I also wouldn’t lose any sleep over the morality of the whole thing.
Well, what I thought was a good post disappeared when my computer froze. So, let’s try again.
I take issue with the thought that inherited money is not earned. I won’t say the following example applies in all cases, but it can and does apply. When my parents pass on, I as an only child will most likely inherit everything. Granted, this initially seems like money for nothing. However, I have put in a lot of time helping my dad with investing advice and tax planning. I worked really hard in high school to earn my own money so they wouldn’t have to pay for my expenses. I worked hard in school and at sports to earn scholarships to pay for college. This was all done with the goal of being self-sufficient and leaving my parents with enough money so they could enjoy life any way they wanted as they get older
Consequently, it will leave me with a nice inheritance that will help out my family. In a case like this, I certainly feel as if I did something to increase the assets, and I know I worked hard directly and indirectly to do so.
You can feel free to call me Mr. Tied for 26th place on the favorite poster’s list.
I think a distiction must be made between an economic or legal definition of “earned”, and the personal and emotional issue.
Most of us feel that as a matter of “fairness”, if we have done something for someone else that wasn’t a pure gift, we’re entitled to some sort of reciprocation. Even without bringing money into it, I can for instance say that if I’ve spent a tiring afternoon taking care of the kids, that I’ve “earned” some peace and quiet for the rest of the evening.
The problem is that when we try to extend this very human evaluation into the cold hard world of economics, conflicts arise. Does an executive who shows up four hours a week not “deserve” his salary as much as a hardworking file clerk who gets payed minimum wage? Perhaps so in a human sense; but in the sense that the executive is in a position where his work ultimately has much more impact on the company’s bottom line, then he indeed earns his humungous salary.
Attempts to make salaries “fair” or “just” rather than what the market will bear invariably lead to quasi-socialist schemes based on a labor theory of value.
I would say that money is earned when:
1.A person performs some action.
2.As a consequence of that action, society overall benefits.
3.The net benefit that society receives is equal to or greater than the money, and the benefit is equal to or greater than the amount of money taken from each individual.
4.Society and each individual from whom money is taken agrees, either explicitly or implicitly, that condition 3 has been satisfied.
5.No rights are violated by the action.
This isn’t a perfect definition. There are some grey areas. For instance, suppose I (lgally) sell guns to people I know are bank robbers, and I know that the money they use to pay for them cam from bank robberies. Now, I put a lot of work into getting these guns. Have I earned my money? This is where the concept of “blood money” comes in. If you work (and I do mean actually work) for some money, but in doing so you help people who are harming society, did you earn the money? If locally you contribute to the general welfare, but globally you are working against it, do you earn your money?
Is it possible for two people that are working towards exact opposite goals to both “earn” their money? For instance, can soldiers on both sides of a war be said to “earn” their money? Or can only one side be right, and only their soldiers be earning their money?
In fact, you are even required to declare income you received by illegal means (!), although you can plead the Fifth Amendment if the IRS asks you what the income’s source was. So, that bank robber had better declare the $5000 he just stole if he doesn’t want to go to jail for filing a fraudulent return!
(Insert obvious Al Capone / Elliot Ness comment here.)
The truth, as always, is more complicated than that.
I apologize for the suggestion that no inherited money is earned. That’s definitely my error in the case of people who contributed to family wealth. I’m thoinking of people like Stev Forbes, a guy who’s grandfather made the money that he tries to present as proof that he’s a real capitalistic go-getter.
My other thought in the OP is that some threads will talk about how so-and-so “earned” their money so they can do whatever they want with it. This does not imply that government is the solution!! There is sometimes a tendancy of posters thinking that anyone who raises an issue wants the government to do something about it; this is not always the case.
On the other hand, if I were king, mediocre utility infielders wouldn’t make 40 times what the average American does. They also woulnd’t play for the Cubs.
In Steve Forbes case, he has contributed to the family wealth after inheriting it. I would consider that about on par as contributing to the wealth in the first place. I tend to only take issue with those who inherit money and then waste it with no long term planning or thoughts of future monetary needs.
