Global Inequality And The Wealth Gap

[WillyAp]

Imagine living in a world without ambition, everyone just enjoying goods till those run out.
Eventually thy will run out, helium is one of the 1st industrial gases which will be mostly depleted.
When good run out the comfy atmosphere turns into violence.

So you wish for equality? Think again.   

[Fragrance1122]

You forgot the money printer.

Search for "Cantillon effect". When central banks fire up the printer, the guys closest to it (banks, mega-corps, and politicians' insider trading portfolios) get the fresh cash before the resulting inflation hits. By the time the "economic growth" trickles down to the working class, a carton of eggs costs $8.

You are right when new money is printed it doesn't go to everyone at the very same time. Banks and giant companies catches it first to buy assets before the price rises. While ordinary man get it last and by that time the wages go up. So the closest gets the best while the rest remains patient on for "good". That's why cleverest ones choose to buy Bitcoin. Because it can't be printed any more because of it's fixed supply..

Still I am wondering how did you manage to get 10 thousand plus merits in just 6 years.

[henmark]

You forgot the money printer.

Search for "Cantillon effect". When central banks fire up the printer, the guys closest to it (banks, mega-corps, and politicians' insider trading portfolios) get the fresh cash before the resulting inflation hits. By the time the "economic growth" trickles down to the working class, a carton of eggs costs $8.

The "Cantillon effect" is perfect to describe the cause of inequality indeed, the people who are closest to bank are getting fresh money at cheap while the furthest person from bank only getting the inflation. The rich become richer because they can grow their asset and the poor become poorer from the inflation. At one point the money will centralizes to the riches and it will result in wealth gap (we are in this stage...).

It become even worse when you started to realize that those big companies and VCs are borrowing money to rebuy stocks or fund another billionaire's project further speeding up the centralization process. The economy will be a mess if this keeps up.

Access is also what matters. When a country prints money, they do not just print it and then drop it from balloons up in the sky, and whoever gets it on the streets gets it. Access is the reason you and I do not go to our government and say Get me some of that new printed money. That money is printed to pay off stuff, and that means that we are going to see banks and rich people get it because they are the ones who are going to get paid. And this is the main reason. They are close to it because they are rich enough to matter in contract deals. Banks, for example, in 2008, got saved by the government, and yet they did pay it back eventually.

The thing is, when you and I are doing badly, we are not getting paid like that, even if it means we have to pay it back. Like if my government gave me a 100k-dollar loan right now, with the rate that those banks got, which was VERY low, then I would be able to pay it back too, because it is such a long-term thing. Hell, I could literally put it in savings at a bank, pay it back and still have 100k left when it is done. So when the deal is great, and the offer is good, it is basically as good as free money to them. But to us? If we are behind even one week, we are getting calls.

[Hamza2424]

Perhaps the wealth gap is more noticeable because the poor love convenience more than consistency and effort and prefer things to be given to them instead of to take it upon demanding it legitimately.

These days it seems the poor even pay more taxes than the poor because the rich knows how to evade taxes with systems they have built like corporations while the poor don't even get freed from taxes because they don't understand financial systems and how to take advantage of it to pay their taxes according to the little they earn.

The rich obviously gets richer and the poor gets poorer because of the way modern economic systems are structured and that is, gains remain concentrated at the top while only bread crumbs fall to the bottom.

Hmmm bro, I would not bring your financial status into question to say why the poor are paying more taxes and the rich are paying less, because it does not depend on the financial status. It depends on if you can hire a good lawyer or a tax advisor who is actually good and not very expensive, so even the poor can hide their true earnings and won't pay a lot of taxes.

I think otherwise, because some taxes are the ones that you have to report, and the poor, especially Jews in some countries, are on top. Not everyone, but I have seen many reports where they utilize the system's subsidies and healthcare, etc. They work less, spend more time on their tasks, not just the Jews, as they are not poor, but the real poor won't even have to worry about taxes. Their income is already very low.

This varies from country to country. Here, if you earn less than 600k PKR in a year, then you don't have to worry about taxes, but you will still pay taxes on items you use, like electricity, or internet, or water, or other taxes. You just won't have to pay income taxes.

[DiMarxist]

 Why does the wealth gap exist?
It is because of several factors: 
• Unequal access to education 
• Unequal access to healthcare 
• Differences in economic opportunities 
• Technology and automation 
• Tax and economic policies 
• Historical factors 

The wealth gap is one that has existed right from time, and i dont think that there will actually come a day when, the wealth gap will be bridged . This is because when it comes to wealth acquisation even if the everyone in given thesame opportunities and put in this same enviroment not everyone will be in thesame level of wealth. This is natural and nothing can change it, acquiring wealth is not limited to enviroments or even country.

Wealth is a product of the mind, how productive a person is will decide whether a person will be wealthy or not. Bascally the wealth gap exist as a result of our problem solving abilities, if you solve a small problem you acquire small wealth and vis visa. So the question here will be how prepared are we to bridging the wealth gap and it can only be done when people look beyond their immidiate enviroment and starts solving real time problem that will be productive to man.

In all the point that you hilighted as been the reason why , this wealth gap exists there is one that you did not mention and that is the place of humans . The the process of creating wealth we humans play the biggest role, so the type of mindset and how exposed a person is is very critical in closing in on the wealth gap.

[tiCeR]

You listed the obvious problems, and imo the solutions aren’t as complicated as they make it seem. If a nation wants to build its economy, the first step is look at the countries that have a stable economy as a model. Their healthcare, access to quality education e.t.c.

My country is rich in oil yet one of the poorest nations in the world. So it’s not enough for a country to have resources or economic growths, ultimately it’s how the wealth is distributed to the people that matters. That includes access to healthcare, quality education and basically UN’s SDG goals.

I believe the solutions are very complicated because money is power and if you have elites or oligarchs benefitting from a system exactly as it is, what do you think are the chances for easy solutions to be implemented? The stakes are too high for any powerful or rich person to speak up because that can go very wrong. Most of them know that the world is not fair the way it is, but it would mean they have to give up in order to strengthen the weaker.

One example when big guys are messing with each other was Musk vs. Trump. Not that any of them has the idea to solve global inequality or close the wealth gap, but they have leverage against each other. That is why usually they will end up sticking together even when they have been fighting each other for a short period of time. These top level systems have the tendency to self-preservation.

Some of the most interesting books and papers are written by Gabriel Zucman. Some of the numbers he presents are unbelievable. The amount of money hidden in tax havens, the amount of evaded taxes, I don't have them available right now, but it will blow your mind. Couldn't anything be done against that? It could for sure, but what is the chance that a politician like Trump attacks some of the biggest tax evaders? If you don't play with the big guys, you won't become a big guy yourself. I think some people start out with good intentions in their life, but when they reached a certain position, they quickly realize that there are things you do and things you just don't do regardless of whether it is right or wrong morally.