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To me, the main reason for this wealth inequality is currency devaluation and economic inflation. The middle class and the poor use much more of their money fo
by prirun 13y ago
To me, the main reason for this wealth inequality is currency devaluation and economic inflation. The middle class and the poor use much more of their money for everyday things, and the price of these everyday things has increased tremendously over the last 75 years. Take a look at this US inflation chart (and that is if you believe the US Gov inflation data, which I don't):
http://en.wikipedia.org/wiki/File:US_Historical_Inflation_Ancient.svg http://en.wikipedia.org/wiki/File:US_Historical_Inflation_An...
Notice that prior to the 50's, there were balanced periods of inflation and deflation. Since the 50's, there has only been inflation. When the price of housing and food goes up, the middle class and poor people take it up the ass, while rich people who are making money via loans to the MC and poor and raking in much more in interest (for example).
When the top 15 US banks are about to go under, the government and Fed buy all their bad assets (loans) with currency the create by pushing a button. Nothing useful or productive is done to create this "value". That new currency is used by the banks to further increase their wealth by manipulating the stock and commodities markets. And yeah, sure - the upper middle class people who have money left over from their paycheck can invest in these markets and increase their wealth. Well, they can until the rug gets yanked out. And when that happens, you can bet the large pension funds, banks, government officials, and those 85 rich bastards will be given plenty of notification before the big crash. But the average Joe invested in the market won't: he will take it up the ass. It's just another way the rich and influential profit from the masses.
Think about the cost increases in food, higher education and the medical system for example. Way, way higher than general inflation. These higher costs force middle class people into lower class, and force lower class people onto government assistance.
ANd please don't say Bitcoin is going to fix this. Digital currency is the ultimate wet dream for the rich, because they will be able to track AND TAX every single transaction, including those to your babysitter or yard guy. Eliminating all untaxed financial transactions and monitoring every transaction is the overloards' ultimate goal.
I'm not saying technology is not a factor - clearly it is. One accountant can do much more with a computer than several accountants could do before computers, robots in factories obviously displace workers, and outsourcing jobs to countries with extremely low wages is a problem. But I think these pale in comparison to currency devaluation over the long term.