What Prism Do You Look Through

I have a question for you. Do you consider the following business to be a successful company? The business is a fast-food restaurant franchise with eight locations; it generates a nice, stable profit, and the owner takes home a little under a million dollars a year. Now the catch, over 80% of the franchises full-time employees earn a wage that puts them below the poverty line. Is this a successful business?

The answer likely lies with how you experience this business. If you’re the owner, you certainly would argue the business you built is successful and provides a meaningful return on the investment you made. However, if you are the employee who works a full schedule and struggles every day to make it, you might not use the word successful to describe the operation.

The circumstance I am describing exists throughout our society and is the underpinning of how many Americans create wealth, while others fight to get ahead. It is also at the core of a systemic challenge this country faces moving forward.

I get the perspective of the owner; there are tremendous personal risks in starting something and likely huge sacrifices to reach the point where the business is stable enough to expect annual distributions. All investors want a return on their investment, and there is no guarantee they will receive it. In the investment world a material return is compensation for the uncertainty and inherent risks that are present; it is part of the deal. Given that, it is hard to argue an owner shouldn’t take every step they can to maximize their return.

At the same time, the worker is doing their job each day. Granted, they aren’t working at McDonalds if they could find other options that are substantially more lucrative. It is easy to judge them, especially if you aren’t in their shoes. But don’t forget, there will always be different levels of capabilities and compensation for individuals. It is the massive gap between the two that is the rub.

After World War II the US economy found a way to rise from the Great Depression and the war; it did this principally while building a middle class that shared in the rewards of the companies they worked for. In fact, history tells us that for the better part of three decades most companies would tell you they exist for the benefit of their customers and employees. And yes, shareholders mattered, and returns were expected; however, not at the disproportionate level they are at today.

This is a fascinating discussion and one that can engender intense responses. Upper income people generally hate this conversation. Anything that suggests they are part of the problem yields emotion. In fact, if you’re not careful someone will quickly accuse you of being a socialist; that is a lazy answer and typically so far from reality. I get the attitude though; I also get that failing to see what is developing among most Americans is short-sighted and dangerous.

I recently read a piece that said one in four people in New York City struggle mightily to pay their bills on a weekly basis. Lest you think this is a blue state problem, 19% of the population in Louisiana lives in poverty, while 18% in Mississippi are considered below the poverty level. But those numbers miss the point; to be considered below the poverty threshold the government uses an annual household income level below $30,000 as the marker – that is effectively the equivalent to earning $14.37 an hour for a year of work. But what about the household that earns $60,000 a year? Thay aren’t considered poor, but do you think it is easy to live in this country on a total of $60,000 a year. The answer is, no it is not. Of note, the median household income in the US in 2025 is roughly $75,000.

All these numbers mean something, but they likely don’t change how the haves feel about this issue. I get that, and I am not being pollyannish. However, I think it would do all of us some good to take a step back and consider the impact this wide gap could have on our future.

If you spend some time looking at world history to determine if anything can be learned from times when there is a wide gap between the haves and the have nots, you will find that one of three things happened: there was a redistribution of wealth by the government, an uprising from the have nots, or the development of a dictator who controls the populace with an iron fist. None of those options sound promising. I know many of you immediately think this is too far, and an overreaction. Some of you are discounting the pain most people are feeling and the threats that can come from this. I hope you are right; I suspect you are not.

We have already witnessed the mass immigration that has occurred as the poor seek a better life. In their effort to get to a better place, they take life threatening risks and endure things most of us would never consider. When you have nothing and little hope, you will do whatever.

The US is embarking on a plan to block immigrants from getting here in large numbers; we are also attempting to aggressively deport those who are here illegally. This strategy, or some part of it, is what most Americans want, and the current administration ran on this approach. Wouldn’t it be nice if securing the border and deporting all the illegals solved the wealth gap in the US? It would be great, but it won’t have much impact.

Interestingly, the President was elected with significant support from the blue-collar portion of our society. He appealed to them, and frankly, promised them a better future. At the same time, he had valuable support from the business community; he promised them less regulation and more success. Said differently, he appealed to one group who wanted this to all change, and another group that didn’t want the wealth gap to change at all; in fact, they were convinced their wealth would get better.

Both promises can’t be fulfilled at the same time. Yes, there are those who will reference a growing economy that will help everyone, and on some small level that is true. But it is a false narrative. True, trickledown economics ushered in a period of economic boom as more Americans became wealthy than ever before; it is also true more Americans became poor, or at the very least, fell behind.

Of all the histrionics surrounding President Trump, I find the disconnect between what he promised to be the most compelling. I have no doubt a segment of the US population will continue to grow their wealth. If you are at the top of the business hierarchy – even if that means being an owner of a McDonalds franchise – you will likely continue to see your net worth, go up. I also believe if you are struggling to get by, nothing is going to materially change for you.

So, what will happen? I don’t know. I do know however, if I were desperate, my willingness to do unimaginable things would grow.

On a positive note, I know CEO’s who are beginning to question the definition of a successful business. They are asking my original question. However, that movement, no matter how noble, is small and likely not to materially change the trajectory we are on. No, things are far enough out of whack it will take something more dramatic.

Admittedly, this is a complex question and one that can’t be fully vetted in 1,500 words. But it is a question that deserves consideration. As I have gotten older, I have tempered my attitude about chasing wealth. I still want to live comfortably, and I believe the pursuit of success is the right path. However, I am willing to wonder about the definition of success.

There may not be a clearly obvious truth for each of us to settle on; it is likely too emotional and difficult a question. However, I do hope we can all at least acknowledge that how you view this has everything to do with the prism you look through, and maybe accepting that, will allow us all to be a little more understanding when we are ordering an over-priced hamburger from a mom who is just trying to feed her kids.