Overcome Wealth Inequality with Philanthropy

By Susan Labadi

Income inequality begs inquiry into how did we get squeezed out of the upper tier, and what can we do

about it? Key areas of weakness point out net stagnation of real wage gain, dilution of influence of labor

unions and collective bargaining organizations, competition from a cheaper global labor force, and

evolution of technologies and efficiencies which reduce numbers needed of non-skilled workers and

mid-level management.

In a nutshell, there are two ways of making money. One is earning through work, which is the case for

most of us. Another way to make income is earning from wealth; this may be in the form of real estate,

owning businesses, investments, and inheritances. This second form, particularly via inherited wealth, is

the critical means that has blasted the 1% exponentially above the remaining 99%, according to Thomas

Piketty, acclaimed author of Capital in the Twenty-First Century, and translated by Arthur Goldhammer.

The wealthy get richer because they can leverage their hours of each day by owning things that produce

income from several streams, and Piketty analyzed that the pace of growth, even for those new to the

upper crust, will be expected to conglomerate further to enrich the already affluent who live solely off

existing inherited wealth.

Historically, there have been wealthy philanthropists who have come to realize that such wealth carries

a moral responsibility to care for those who struggle. They created institutions and initiatives that have

benefited large numbers of people in education, housing, healthcare, the arts, and in mentoring

entrepreneurs.

Acquisition of wealth, when properly managed, can enrich and build a community. Stability, not only for

one’s self and family, but for one’s community is at the core of an Islamic economy.

This June 14th will feature the first Chicago Islamic Finance & Economic Conference. Be an informed

member of those building a better, more equitable economy. Attendees will be industry specialists and

the public is welcome. A series of sessions for women-only will also explore entrepreneurship and

investment. See the website at www.islamicecon.com for more details and registration.