Inequality for all

I watched a documentary earlier today that was called Inequality for all, and I really enjoyed it. I felt that it hit home on a lot of points. Of course it’s somewhat bias, but in it’s core I think the point get through to the viewer in a good way.

It’s about the economic system of USA, how it works now and how it used to work in the past. It goes through important changes that were made politicially to take the economy from where it was to where it is now. You get a nice picture of the whole thing really.

The main issue in the documentary is that too few people own too much of the wealth in order for the country to be healthy. The point is that every country needs a thriving middle class in order to maintain a decent living standard. Which pretty much means that you don’t have to work 3 full time jobs in order to pay rent and get food on the table. USA is pretty much working with something they call “Trickle down economics” these days, which sounds pretty amazing and sound, but if you think about it, it really doesn’t make much sense. Not in my mind anyway.

Trickle down economics pretty much boils down to that if you stimulate the wealthy people with tax-cuts and things like that, they will have more money to start companies which will hire more workers, and thus the wealth “trickles down” from the top to the bottom. Sounds reasonable enough, but it doesn’t work. Too much money is stuck with the wealthy people in order for the middle class to thrive. In other words, it doesn’t create jobs, it just gives more money to the wealthy while the people who are just trying to survive pay all the taxes and don’t get any benefits or exclusive treatment as the wealthy. The inequality continues.

When the gap between the poor, middle class, and the wealthy increase, so does social issues as well. Sure, I’m super bias in this since I am a socialist at heart and hate when people get mistreated.

Damn I’m going on a real rant here, nice! Anyway, one simple way of putting it is that if you make 200 times more money than average Jill and Joe, you don’t spend 200 times more money than them.

Let’s do a simple thought experiment. I’ll ask you a question and you get to choose from two answers.

Q: I want to donate 100 million dollars, in which way will I stimulate more spending?

A: 1. I give 1 person 100 million dollars.
A: 2. I give 400 people 250.000 dollars.

What do you think?

Fridens.

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