Income Wealth and Inequality

The gap is wider than ever in the history of the World. This came about for a number of reasons:

  1. Governments granting monopolies to friends (East India Co, the Fed, Railroads etc.). The reasons made sense but there was no forethought or regulation of the social consequence.
  2. The granting to corporations the legal status of a ‘person’ (See the movie ‘The Corporation’). This allowed them to act as traders (Instead of inactive ‘Holding companies’). Again, there was no forethought or regulation of the social consequence as they were not made liable for their actions in the way a ‘person’ is. Hence, no-one goes to jail when Corporation X steals yet a homeless person does. (Savings and Loans scandal, Ninja loans, BP Oil spill)
  3. The creation of credit derivatives has allowed compounding a simple loan into multiple loans with almost zero real value. Your mortgage is no longer held by the bank but resold in a package as an annuity to your pension fund for an electronic version of cash which is then listed as a cash deposit at the bank and re-lent to you as a credit card loan which is resold as an annuity and around it goes. All Western banks have less than 3% equity (and that is ‘Goodwill’, carpet, desks and shop fitouts!! (The computers, premises, cars etc. are leased))
  4. The politicians have sold out the public for personal gain. (K Street lobbyists, backhanders, Board of Directors appointments etc.). Yet again, there was no forethought or regulation of the social consequence – just bare naked personal greed.
The lessons:
  1. A benign dictator is required to show wisdom, foresight and consideration of the populace. (Best of luck finding one)
  2. The ‘system’ has reached breaking point in terms of income/expenditure etc. The US credit limit is close to being put on Stop Credit (Debt holders in a declining economy (Due to demographics, climate change etc.) will want their cash back)
  3. There will be a major reset (caused by financial or social default) and an ensuing period of chaos.
  4. A ‘New’ king will announce that he/she has the solution and the sheeple will follow (80% of people are followers, 10% are left behind and a mere 10% will attempt leadership).
  5. The brave new world will be constructed in the image of the old and the cycle will repeat.
  6. The desire for personal enrichment at the expense of others is innate in humans, so the ‘Problem’ can never be solved, just morphed and twisted into a slightly different version of the same.

From: Quora