- Inflationary monetary policy and artificially low interest rates keep the poor and the middle class from saving and investing
- Our systems allow people to get ridiculously rich from speculation and debt leveraging; completely legal mechanisms by which they transfer wealth from the middle class to themselves
- When government monetizes debt or disburses stimulus packages, our fiat money system creates an inflationary wealth transfer from the middle class to the well-connected elite
- Elite special interest groups often have a big influence in government affairs through which they receive bailouts, protection and special privileges
These points might be a bit technical and actually require many pages to outline fully (as is illustrated in the page series on our exchange economy). In general though, all you need tho know is that our current systems, by their very nature, will make the rich richer and the poor poorer.
The natural result is a global wealth distribution such as the one shown below.
Just take a look at these numbers: the top 0.5% of the world control 38.5% of the wealth, while the bottom 67.6% control only 3.3%. In other words, on average per capita, the top 0.5% are 1600 times richer than the bottom 67.6%.
In the meantime, as shown below, the consumerist mindset created by our current systems has totally destroyed wealth accumulation among the middle class, further widening the wealth gap.
Sadly, despite all the economic pain we are currently experiencing, people are still sticking to the status quo of more debt and more spending. In effect, we are continuously jeopardizing our long term future for some temporary short term gains. This cannot end well…
Filed under: Introduction