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The wealth of the US at times shortly after the second world war came from the broad middle class. Today the wealth of the US is lying in the hands of the top 1
by PythonicAlpha 12y ago
The wealth of the US at times shortly after the second world war came from the broad middle class. Today the wealth of the US is lying in the hands of the top 1% of the society. Something must have been happening in between.
In the European Union there is also a similar trend. There exist studies that today it is much more difficult for somebody coming from lower income (and society) levels to become rich than it was 40 or 50 years ago. There is nearly no exchange anymore happening, because today's rich can rely on the fact that their money will beget more additional money nearly automatically. Also times are over, where many people build their riches from scratch. Most rich people today are rich in the second, third or fourth generation today.
Low taxes on wealth and inheritance are doing their job. But also the fact that earning money by just having (enough) money costs less tax than hard working for money in Europe (in Germany, you will pay for your worked-for money (if you earn enough) up to ~40% on taxes and additionally you have to pay social security fees that can eat up an additional 20% (estimated) of your earnings. For money you got threw having money, you will today come away with 25% flat rate tax.
With such tax laws in action, you could come to the view, that letting work your money for you is more difficult than working in a factory and must be promoted by the state.