Real Life Economy

The vicious cycle of our new economy – Part 2. Why the rich get richer

In my previous post we established some important principals, helping us understanding better why the rich get richer and the poor stay poor.  We establish a clear definition of who is considered rich and and who is not. This  important step was necessary, for the sake of developing a serious conversation. which will help us achieve a better understanding regarding the system we are living in and its cause. lets move forward.

There is one major point that we need to keep in mind during all this conversation, which we all know but like to ignore. Like any other minorities that are maintained by the rest of the population. The rich require the cooperation of the others to maintain their riches and create more money. It never worked oppositely. The feeling hold by some employees, dictating that it is the poor and middle class that requires the rich cooperation. Is just an unrealistic illusion created by the elite, for the sake of keeping its power. Without any doubt, the capacity of maintaining such a philosophy of doing, requires a misconception of the masses regarding the basic function of the system itself. Let’s understand why. precious 

The rich are normally occupying a high management position. They manager a group of people, that in their turn are managing a bigger group of people that are managing actual workers. The length and size of the chain vary between organisations and industries. In the reality, management is and always will be a secondary occupation of any system. To make it simple, lets take an example from a different spectrum of life. For any watch mechanism a time keeper is required to make sure the watch is accurate and show the actual hour.

Why the rich get richer and the poor stay that way

The job of the time keeper is to occasionally look at the hour and make sure it is accurate. In case it is, the time keeper will be re insured that the mechanism itself is working well (in the case of a factory, sales agency etc – the employees), and will go back to his occupation until the next check. In case the watch does no show the right hour, he will at first make a few moves that will make the mechanism go back the right hour and go back to his other occupations. If the mis-synchronization will repeat itself, he will open the watch check which one of the part of the mechanism is not functioning well, replace it and go back to his occupation. In the case of a factory, as you could easily understand the mechanism is the employees, which will be replaced.

The conclusion that should be taken from this example is not in any case, that a time keeper is not needed. His existence is important for the sake of keeping accuracy and order. The point is that without a watch to start with, the time keeper will not have a practical job to do.

imgname--the_rich_get_richer---50226711--images--inequality

For the sake of developing the topic, understanding the current economy and understanding its vicious cycle, I will say that for the moment the following questions should be asked. If the rich requires the actual worker for the sake of maintaining themselves from the first place, how come their income in un-proportionally higher than the actual employee and more appreciated?

This question is important for the sake of developing a primary awareness to the reality we are living in. For the sake of it, organisation as banks, financial companies, investment companies and any full scale bureaucratic organisation can be considered as a management company. As you can figure out, those organisations are taking extremely high revenue and distribute high salaries. While the actual workers maintaining the system, are not evaluated as a necessity and not paid enough to finish the month. In this structure, an employee is incapable to buy a house and maintain decently a happy family. A very twisted reality, compared to the importance of the people in the system.

What is your opinion in the subject? Awareness and open conversation are the key for the creation of a better future.

Related Articles:

The vicious cycle of our new economy – why the poor stay poor and the rich get richer – Part 1

Politics and Government · Real Life Economy · Real life education

The vicious cycle of our new economy – Part 1. Introduction to our new economy

The way we are operating the trade of our world, can be describe as a new economy. In the western society of our days, one of the main purpose of many young people is to get rich. Or at least stop to be poor. Sentences as “ money attract money” or “the rich get richer” are familiar to most of us. Once in a while, some articles are published In newspapers celebrating a certain person getting richer or describing how the latest tax reform has saved to a certain person or organisation millions of dollars. In the next posts, I will take the time to fully explain why the rich get richer and the poor stay poor. We will understand how the system we (the majority of the people) are working so hard to maintain is built to keep things this way. For now, let’s concentrate on basic defining and some important principals.

When I say poor, I refer to every person that is not rich. It is important to make such an inaccurate dichotomous separation, for the sake of passing the point we are trying to understand. For the sake of our conversation, poor will include a range of people, from the poorest person that do not manage to finish the month, to people falling under the category of middle class society. The middle class, are those who are required to work a full-time job all their life to maintain their basic survival, a nice house with a mortgage, maintaining a family requiring an occasional loan and in some good case are able to afford a vacation once in a while.

Many of us will feel a bit offended to be called poor, seating in a nice house reading this post from a new Iphone or tablet, which is part of the problem to start with. It is also true, that calling the middle-class poor, is in many ways making the situation of the very poor people sounds less important and serious. To be honest, I believe the reason the very poor still exist, is because of the lack of understanding of the middle class regarding their status and the lack of responsibility they are taking on the system they support. We will get to it later on, in the following posts.

For now, lets establish a few important points: (I will take the time to explain all these points in separate posts)

The poor get poorer

  • People that live well holding a loan, are neither wealthy neither rich. It is just a temporary illusion. Such an illusion is the foundation of our twisted economy. It is required for one to support the system and maintain the economy as it is. (The amount of people with personal loans and mortgages these days, arrived to an all time high in human history)
  • Money became the only mean to survive in a rural city. Without it, the capacity of an individual to survive in a big city is almost impossible. Money is required to buy food, accommodation, transportation etc. It is essential for one basic survival in any rural location.
  • As I mentioned in a previous post, money has become mainly electronic. The majority of the money in the world do not exists in the reality, which makes the pursue after money extremely abstract. In 2018, less than 15% of the money actually exists as printed notes.
  • The monetary system of those days is build in a way that allows the authorities and the banks to control our life and manipulate our daily existence.
  • The idea of pursuing money for the sake of spending it immediately on temporary objects or unproductive upgrades is absurd and cannot promote any long terms positive aspect to any individual or society.
  • A person that will not be able to maintain itself (providing himself food, shelter and clothes) in case he loses his job, is in many ways a salve of his employment and of the system itself.
  • Loans with interest rate for the sake of maintaining one basic life is criminal, as it demand from a person to create more money than the one he do not have from the first place.
  • In case of economical crisis, the main layer of people that get affected are the poor and the middle class, while the rich stay rich. As I will show the rich can even get richer.

In the next posts, I will show you how the system is build and why it is almost impossible to get rich if one start without basic riches. It is true that there are some examples of people that became rich. They are important for the sake of maintaining the belief in the masses mind that it is possible. This topic is heavy but important. Ignoring it, is an active way of maintaining its continuation and promise our slow demise as individuals and as a society.

Share with me your ideas and thought, open conversation and awareness are the key for the creation of a better future.