3 ms·
Exactly, wealth is being concentrated at the top to such extremes that there is no more excess money in the lower/middle classes to tap. So somehow or other th
by scottLobster 4y ago
Exactly, wealth is being concentrated at the top to such extremes that there is no more excess money in the lower/middle classes to tap. So somehow or other the increase in wages will have to come from the wealthy, whether through intentional redistribution, market forces, or peasant uprisings. Likely some combination of all three.
Eventually it just becomes a physics problem. If $100 exist in the world, and one guy has $99, and you need to fund something that takes $2, you have to get $1 out of the rich guy somehow.
- raincom 4y agoOr devalue the dollar to the extent that $1 becomes $2. In which case, the person who holds $99 doesn't hold $99 as "raw cash"(nominal asset), but holds $99 worth of real assets. With this inflation or devaluation, his $99 will become $198 + delta. This delta comes as rent extraction from the ordinary people.
- quickthrower2 4y agoYour comment assumes that like energy, money cannot be created or destroyed. Which is false. Anyone can create new money by talking a loan from the bank. However this point also helps your argument: When you borrow you pay interest to someone richer. In a sense a combination of whoever you sent the money to, and the bank.
- sin7 4y agoCan poor people take out a loan and create new money?
- loa_in_ 4y agoThey don't, and in times where there's most need for that, banks squeeze their wallet close even tighter.
- quickthrower2 4y agoMy understanding is any loan from a bank creates new money. However not sure about the types of loans that poor people use such as payday loans and pay-in-4 services. Maybe that us too since an investor may use bank borrowed money to fund them?