The rich often get a bum rap. Liberals are incensed when it is suggested that “the rich” get any type of tax reduction even though the top 50% of wage earners pay 96% of all income taxes. Since they spend more money, the rich also pay a disproportionate amount in sales, property, entertainment, and excise taxes. Without the rich, most people would not have jobs.
The first computer my company purchased in the mid-1980s cost $7500. That’s about $21,000 today. It was huge and could only perform a few simple tasks, mostly word processing. The floppy disks were the size of dinner plates and held very little data (360k). Almost overnight, computer prices dropped and performance levels increased dramatically.
The first cell phones were the size of a small backpack. It didn’t take long before this monstrosity (by today’s standards) became the size of a brick. Now, when folded, they they are smaller than a half-pack of cigarettes and can do extraordinary work that wasn’t even conceived ten years ago. They are so cheap to own and operate that many people have given up using conventional (land-line) phone service.
What made these performance gains and price reductions possible? People with lots of money purchased the first high-priced items. They had the financial ability to lay out “excess” capital for what most people would consider luxury items. Cell phones are now so cheap that even homeless people can afford them.