Societies create wealth, it is the money that we spend and the taxes that we pay. When our governments give banks money, it is our money, there is no other money. Banks lend us promises and we repay them with wealth. Billionaires and millionaires, the 1% to 5%, do not create wealth, they don’t make it, they disproportionately accrue it. They also don’t spend it back into an economy and they do not pay their “fair” share of taxes on the money (that is, they do not pay the same % of tax on their wealth that those in the 95% would pay). £billions are hemorrhaged from economies and when they are the economy must create more wealth to replace it. Why replace the wealth, well, the 95% still have to eat and pay their bills and that money has to come from somewhere. But economies can only create so much wealth, so governments create it and feed it back into the economy.
Unfortunately, the more wealth is hemorrhaged from the economy the more money must be created to replenish it. That is the Boom. Eventually an economy reaches a tipping point, a point at which the government has created so much money to replenish the wealth hemorrhaged that there is no real value left in the economy. That is the bust.
If wealth accumulation is regulated, then money creation is restricted to a manageable rate and the risk of Boom and Bust can be all but eliminated. You can regulate wealth accumulation by having higher minimum wages, sufficient taxation and tax enforcement/regulation. Granted, you will most likely restrict people from accruing £billions or even £millions but you will have more robust economies that serve their populations.
Take one £billion from what a billionaire might accrue and bank offshore, distribute that among 50million people and each person will have an extra £20 that they will spend back into the economy, which will create jobs and pay wages. Leave the billionaire to accrue their £billion and bank it offshore and now the economy has to find the equivalent of £20 a person for 50million to create those jobs and pay those wages. Rinse and repeat and you will witness the 1% accruing ever increasing quantities of wealth but only by sucking economies dry.
Politics of envy!
You’re just jealous that you aren’t smart enough to become a billionaire.
Why do you hate success?
Those are all learned reactions, they’re a bit tiresome, and based on fantasy. There is nothing much wrong, in my book, with capitalism. It gets the job done. There are many ways to do capitalism and we are currently living through a period where capitalism is considered based on “rent” economies, rather than manufacturing economies. Essentially, economies based on money making money. Such economies are monopoly economies, trickle up, and are both unsustainable and unjust (because, without money you can’t make money). Eventually, monopoly economies suck the economy into a black hole. Monopoly economies create serfdom on industrial scales. It’s not envy or hate of success, it’s basic common sense, you just haven’t realised that you’re a serf yet.
Redistribution of wealth sounds very scary. We’ve been sold on the idea that economies work by business owners creating wealth and that wealth trickling back into our economy. If business owners don’t create wealth then economies will die. Taxation is seen as the State taking money from the business owners and spending it on stuff for people who don’t create wealth. That’s not how it works. Redistribution of wealth is a decision a society makes to stop favouring the 5% and all that is required is better taxation, fairer minimum wages and pensions or, even better yet, a true Universal Basic Income.
It’s our wealth and we should start rebuilding societies and economies so that they recognise that.