U.S. Senator Elizabeth Warren, Bernie Sanders and Robert Reich all say that the system is rigged since so much wealth is held by so few people in our nation. In fact, 0.1% of the US population holds almost as much of the wealth as 90% of the rest of us. So, how do they pull off rigging the system? What does that mean? The answer is so simple that it will surprise many. And, though there IS a conscious effort by *some* to hoard wealth and deprive (mostly their own employees) of the wealth they deserve, theres an even simpler problem: its built into our system because CAPITALISM IS SUCH A POORLY DESIGNED ECONOMIC SYSTEM. When wealth is concentrated into the hands of a few, without a requirement that it continuously be spent or INVESTED IN PRODUCTIVE VENTURE not PASSIVE gain, its impossible for those few holders to spend as much capital as would be spent if that same amount of wealth were held by thousands of people. Simply put, one extremely wealthy person (or even family) doesnt spend like 1000 people. They dont buy 1000 cars, or 1000 shirts or 1000 trips to the dentist. So, when money gets concentrated in their bank accounts -- wherever they are kept -- it stagnates. And, even if its invested in real estate or stocks or other passive ventures its probably not as productive for the economy as an active investment (like building a factory, or opening a new business). Capitalism, when its governors fail to require active investment with policies that say if you dont spend this money, were going to tax it and spend it for you is a tragically damaged economic system.
Posted on: Thu, 25 Dec 2014 21:00:33 +0000
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