How the Rich steal from the Poor
How do the rich steal from the poor? Why does the richest person earn thousands or even millions as much money as a poor person? Do they deserve all that money? Is the money fairly earned? What is their dirty secret?
Before I go any further, I am not complaining about true capitalism or entrepreneurs. If you created something new and sell it without coercion or government help, then you probably deserve your wealth. This article is in reference to those that collaborate with governments to steal wealth from the poor.
This is also not an excuse for most people to remain in poverty, especially here in the USA. Even if you are working at a minimum wage job, you should be investing some of your earnings into improving your future.
The dirty little secret of most of the world's wealthiest people is the creation and use of fiat currency. If you can create a million dollars out of thin air, you invest that money to earn more money and then return the original money. Currently, the federal reserve has pledged to keep interest rates at zero percent to help the economy. But those zero rate funds are only available to those with political or banking connections.
For a while, the middle class was able to take advantage of some of that fiat money. They could borrow from banks to buy housing, let their property appreciate, then sell the property at a nice little profit. They weren't using their own money, except for maybe a small down payment, which they would often put on their credit cards.
The result of all this easy credit and money going into real estate created a bubble that eventually popped. Now the middle class is starting to disappear in America. A huge crack is starting to appear between the rich and the poor. Either you will be at the top or at the bottom.
Only the death of fiat money and the return to a metallic money standard will solve this huge disparity in incomes. Money should not only be used for trade, but it must also be a store of value. That is why gold was the king of money for thousands of years.