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The Rich Get Richer, the Poor Get Poorer:
How the 1% Is Robbing the 99%
At a time of shrinking
job opportunities, the 1% of the population with the highest salaries is facing
an ever-shrinking pool of jobs. These professionals have access to the best
education and networks that open doors of opportunity.
But what do they do to get there? What mindset do they have? And how can you
break into their circle? In this blog, we’ll tell you everything you need to
know about the 1% of people who are making bank every day and how you can join
them in your pursuit of financial freedom.
Why is the 1% so powerful?
The 1% of the population
is incredibly wealthy, controlling a disproportionate amount of the wealth and
resources of the world. The 1% use their money and power to exploit the 99%.
They use their wealth to buy political influence, which they use to restrict
access to essential resources and opportunities for the rest of us.
They benefit from high
taxes and government regulations that benefit them at the expense of the 99%.
By restricting access to education, healthcare, financial safety net, and more,
they prevent more people from getting ahead.
This money and power
enable the 1% to entrench themselves further into an economy that is not built
for all of us. The money they earn is not equally shared among all of us, so we
all lose out.
How does the 1% control so much wealth?
The concentration of
wealth at the top of the economic pyramid is a major socio-economic problem of
our times. The financial and political system of the Richardson economy is
designed in such a way as to promote the interests of the 1% of the
society.
Banks have been
incentivized to take huge risks by borrowing money at negative interest rates.
This vast pool of cash has not been channeled to Main Street but instead has
been pushed into the hands of the already wealthy.
The federal reserve has
printed money in unprecedented quantities, increasing the amount in the banking
system from $200 billion in 2008 to $1.2 trillion in 2010.
Political incentives
have encouraged central bankers to make major mistakes, leading to the
concentration of wealth in the hands of the 1%.
This financial system
works as an engine for inequality among nations as well with it, no country can
be successful if its economy is dominated by a few.H2
The root of the problem
The rich are getting
richer, while the poor are getting poorer in the world today. The gap between
the rich and the poor is widening day by day, as the 1 percent of the global
economy dominates the rest of it.
If you belong to 99
percent of the population, then you are aware of how big a role money plays in
our lives. The 1 percent of the global economy is responsible for about 25
percent of the world’s income and wealth.
In other words, money is
not enough to make it to this elite group. It requires hard work and
determination too. Besides, government policies are also favoring their
interests. The 1 percent of the populace owns businesses, assets, and resources
worth billions of dollars.
Therefore, they have
easy access to money, which attracts them more and more toward financial gain.
But what you may not know is that the 1 percent is able to control the money
supply of the economy in favor of themselves due to their financial assets.
They can keep others in
poverty with their capability of controlling the prices of goods and services.
Therefore, it becomes vital for everyone to come together and fight against
this powerful group of people who have unjustified access to money in order to
eradicate poverty from our societies
Why this is a global problem?
The global economy is
currently rigged in favor of the wealthy few. This creates inequality and
cycles of poverty that are unsustainable over the long term. The 1% are able to
get richer thanks to unfair economic systems and policies, while the poor are left
behind.
The 1% can use their
wealth to buy political power, which allows them to continue exploiting the
poor. The root of the problem lies in our economic system, which encourages
extreme inequality and bifurcated lifestyles.
It is time for a new approach
that promotes greater equality, environmental sustainability, and social
justice.
Solutions to the problem
The book, The Lords of
Easy Money, details the role of the Federal Reserve in creating the economic
conditions that have led to the current economic problems of the United States.
The book looks at
the central bank’s history of making money easy and abundant, oftentimes at a
cost to the economy as a whole. The easy money policy of the Federal Reserve
has helped create bubbles in the stock market and real estate market that have
eventually led to financial crashes.
This easy money policy
has resulted in an economy where money is too easy for those who have it and
too hard for those who don’t, leading to increased inequality and social
unrest.
What we can do to fight back
The 1% are robbing the
majority of the income in our society by avoiding paying their fair share of
taxes. The average top-income tax rate in the US currently stands at 38%.
However, the top marginal federal income tax rate is only 35%.
This discrepancy results
in billions of dollars of federal revenue lost every year through loopholes and
deductions in the tax code that favor the rich and powerful.
Meanwhile, the poor and
middle class pay higher rates than they should be due to excessive deductions
and loopholes in the tax system. If we want our economy to thrive and grow, we
must do more to close these gaps between rich and poor.
We must fight back by
organizing and protesting, as well as working to reform our tax system so that
it is more equitable and fair for all.
The collapse of the American economy by the Federal Reserve.
The Federal Reserve was
founded in 1913 as a result of populist demand for a federal reserve system. As
the central bank of the United States, the Federal Reserve is responsible for
regulating monetary policy and banking in the United States.
Its decisions in the
last two decades have favored the wealthy, leading to an increase in
inequality. The crisis of 2008 has revealed how flawed the economy of America
is when money flows from the top to the bottom of the economy through monetary
policy.
It’s easy to
forget that banks that get money from the fed are required to lend money at
rates below market rates, thus bailing out troubled banks. This money has gone
to corporations and individuals with high balance sheets, not low-income
families who need it most.
Despite its record of
failure, the Federal Reserve still doesn't trust markets to self-regulate. This
is dangerous because it can lead to another financial crisis or depression like
we saw in 2008 - causing trillions of dollars of damage and millions of jobs
lost around the globe.
To fix this issue, we
must hold accountable those who created and continue to perpetuate inequality
by banning interest on money held in reserve accounts.
Top lessons to learn from
The Federal Reserve has
been instrumental in the economic downfall of our country. In his book, The
Lords of Eaasy Money: How the 1% manipulates the economy and steals from the
rest of us (Christopher Leonard), the author gives an overview of how the Fed
is run by banks and big money interests, leading to policies that benefit them
at the expense of everyone else.
He also explains how
easy monetary policy enabled banks and big money interests to borrow money at
near-zero interest rates, and invest it in financial bubbles like housing,
which ended badly for everyone else.
As a result, easy money
policies have led to an era of financialization and asset price inflation that
benefits a small group of elites but has caused instability and suffering for
everyone else. The book's readers have given it an average 4.5 to 5 stars on
average.
More books from this author: Christopher Leonard
Christopher Leonard is
the author of the New York Times bestselling book The Meat Racket, and his work
has been featured in publications such as The Wall Street Journal, Fortune, and
Bloomberg Businessweek.
Leonard has spent more
than two decades covering the financial services industry, and his writing
focuses on banking, capital markets, and asset management. He has covered
topics such as stock trading and hedge funds and analyzed the banking industry
from a macroeconomic perspective.
Leonard's book The Lords
of Easy Money explores the financial crisis of 2007–2008 from a unique
perspective of those who made money in the midst of the crisis.
In it, he highlights the
risk-taking behavior of financial elites during the crisis and their efforts to
conceal their gains from public scrutiny.
Ways to fit in the 1% mindset
If you want to be part
of the 1%, the first step is to take a look at your current lifestyle. Start by
acknowledging that a high income doesn't automatically mean financial security,
financial stability, or freedom--all of which require living below your
means.
When money is easy to
come by, it can lead to complacency and the easy consumption of material goods
that can lead to financial stress and instability. Instead of focusing on the
money, focus on experiences and how you spend your money.
Consider what is truly
essential in your life: Housing? Food? Clothing? Utilities? Health
care? Money should never be an excuse for not taking care of these
essentials.
Prioritize your time and
energy wisely. No matter how much money you make, never let money dictate the
amount of time spent on activities that are important to you.
Likewise, money
shouldn't be the only factor in choosing a career or pursuing an education.
Live in a way that makes you happy and comfortable.
It's important to
balance money and pleasure so that you aren't overwhelmed by one element of
your life while neglecting the other.
Lastly, continue
learning and expanding your knowledge so that you can maintain a high level of
privilege and wealth. By using these tips, you can embrace the 1% mindset and
live a prosperous lifestyle regardless of income level both easy access to
money and financial security
You don't have to be rich or wealthy to enjoy a prosperous lifestyle.
The 1% mindset does not
require income levels above average or anything close to it to enjoy a
prosperous lifestyle. If you are willing to do the work required of earning
money in a sustainable manner, the ability to afford luxuries like expensive clothes
and accessories is within reach for most
What is the relevance of this story to readers of Lords of Easy
Money ?
In light of the current
economy, it's important to read books like Lords of Easy Money by Christopher
Leonard. The book is 373 pages in length and offers readers an insight into how
the Federal Reserve broke the American economy.
This broke system led to
the Great Recession of 2007-2009, which affected everyone in some way. The
author provides detailed explanations of monetary policy, banking systems,
money supply, interest rates, bubbles, and the stock market crash of
2000.
He also sheds light on
the role of central banks in our economy, and how their actions have huge
implications for us all. Lords of Easy Money is a must-read for anyone
interested in understanding the economy, banking system, and financial markets
in greater detail.
How can I start my own side hustle?
There are a number of
ways that you can start your own side hustle. One way is to try starting a blog
and selling advertising space.
You could also provide
services such as lawn care or pet sitting. Another way is to start a business
providing services like home design or catering.
There are many resources
available online to help you get started, so explore them!
What are the benefits of having a side hustle?
Choosing to start a side
hustle can be a great way to make money, increase your income, and have more
flexibility in your lifestyle. A side hustle can be a source of supplemental
income - meaning that it can help you bridge the gap between your regular
salary and expenses.
A side hustle can also
provide you with the opportunity to develop your personal brand - which is
something that can be hugely beneficial in your professional life.
Additionally, side
hustles can be a fun way to spend your free time and connect with others in
your industry.
Which is better: traditional business or an online side hustle?
There's no clear answer
when it comes to which is better: traditional business or an online side
hustle. Both traditional business and online side hustles have their advantages
and disadvantages.
Traditional business has
the advantage of a more established infrastructure. This means that it can be
easier to find clients, open bank accounts, and manage financial records.
Additionally, being a
part of a traditional business may offer more stability and security in
comparison to an online side hustle.
On the other hand,
online side hustles have the advantage of being able to work from anywhere in
the world. This means that you don't have to worry about traveling frequently
or dealing with disruptive traffic jams.
Additionally, online
side hustles are often more profitable over time since they're not as reliant
on one-time commissions or fees. However, traditional businesses can be harder
to make a quick profit.
This is because it can
take longer to build up a strong client base and establish a good reputation.
In addition, it can be more difficult to secure funding for a traditional business
than it is to start and run an online side hustle.
What are the best websites for learning how to start a side
hustle?
Some good websites for
learning how to start a side hustle include Side Hustle School, The Millionaire
Fastlane, and The $100 Startup. These websites have everything you need to know
about starting and running a successful side hustle. On these websites, you
will learn about different types of side hustles, how to start a side hustle,
and how to make money from your side hustle. You will also be able to ask
questions and get support from the website’s community.
Do you lie in that 99%?
The system of wealth
inequality is not just unfair; it’s also inefficient. It produces a grossly
unequal distribution of resources, leading to more social and economic
instability.
The rich get richer
by stealing the money of the poor, thus leaving us all poorer in
the long run. However, there are things we can do to fight back against the
1%.
We must educate
ourselves on the economy and the history of wealth inequality. We must
learn to organize, take action, and demand change from our elected
officials.
We have to create a
society where everyone
benefits from economic growth and prosperity for all.
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