Private equity – public inequity The Munnies also have a problem: they have more money than they can spend. There is a limit to the number of cars, yachts, cases of champagne a dynasty can use. So they have to buy other stuff – like land, toll-roads, coal fields, houses, public utilities, facilities that everyone uses. They ‘munnitize’ them. Sometimes they pool their money in to Private Equity Funds so they can buy bigger things which once belonged to the Public. Private Equity makes for Public Inequity because the Munnies expect a return on their ‘investments’; paying to use the facilities further eats into the spending power of the 95 per cent. More borrowing is needed but to make this possible, the interest charged by the Munnies is lowered. Nevertheless, it becomes increasingly problematic to keep the 95 per cent employed, paid and, most importantly, consuming. Debt is building upon debt. Some of the Wallies acquire so much debt they just surrender everything they have to the Munnies. In some cases they promise to give a slice of all their future earnings to the Munnies as well.
Posted on: Wed, 05 Mar 2014 09:01:35 +0000
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