Why is America’s 1/x wealth distribution bad & unnatural?
Why is any nation’s 1/x wealth distribution bad? You really ought to study this.
Why does the slope of the curve suggest that wealth accumulation gets easier the more wealthy you are?
There are many reasons. One obvious reason is that if a person doesn’t have any money to invest, he can’t make unearned income. He can’t invest in stock or bonds. He can’t put money in the bank. If a person is putting children through college, or saving for their educations, he can’t invest or he has only a tiny portion of his wealth available for investment.
OK, assume that a person has accumulated wealth, what then? The economic cycles wipe it out. He has to go back to square one and start again. The wealthy, however, are diversified and wealthy enough to let the poor investment ride until it has recovered. The very wealthy have all of their money available to invest and don’t rely on their investments for their future lifestyle. 99% of a very wealthy person aren’t even used to enhance their life style. A wealthy person can lose a few billion and not be devastated. Chances are, his other investments are beginning to look promising even as some lose their value.
However, it’s even worse than this. There are deeper, darker reasons why it becomes increasingly easy to accumulate wealth as you get richer. What do you think they are? Leave a comment and I will answer.
Your turn. Don’t be glib. Politicians don’t talk about any of this stuff. Neither do your brainwashers I mean teachers.