Also, poorly distributed wealth leads to corruption and inflation.
This is partially because taxes are deflationary (taking money out of the cycle), and rich people love to dodge their taxes. They also love to price gouge the poor (accelerating inflation), and they love to buy luxuries and over spend on stuff… Especially things like realestate. This drives up bidding/prices… Inflates prices if you will.
A lot of this behavior comes back to their tax dodging. See they don’t like to have an income, instead they like to borrow money from the banks pointing to asset wealth (particularly stocks) as their equity justifying banks giving them high loan amounts.
They the live off the borrowed money, stock prices fluctuate, they buy assets with their borrowed money… Then they talk up their stocks sell some of them, pay off their bank loans… Change banks, point to their assets, give themselves more stocks in their own companies as bonuses, or end of year rewards… Take out more loans, live off more debts, buy more assets…ect ect…
All to avoid paying thier fair share. To price gouge people, to drive up realestate and other prices …well none the less to say that larger wealth disparities can contribute to inflation. Which is why fair distribution and taxation are important.
Also, poorly distributed wealth leads to corruption and inflation.
This is partially because taxes are deflationary (taking money out of the cycle), and rich people love to dodge their taxes. They also love to price gouge the poor (accelerating inflation), and they love to buy luxuries and over spend on stuff… Especially things like realestate. This drives up bidding/prices… Inflates prices if you will.
A lot of this behavior comes back to their tax dodging. See they don’t like to have an income, instead they like to borrow money from the banks pointing to asset wealth (particularly stocks) as their equity justifying banks giving them high loan amounts.
They the live off the borrowed money, stock prices fluctuate, they buy assets with their borrowed money… Then they talk up their stocks sell some of them, pay off their bank loans… Change banks, point to their assets, give themselves more stocks in their own companies as bonuses, or end of year rewards… Take out more loans, live off more debts, buy more assets…ect ect…
All to avoid paying thier fair share. To price gouge people, to drive up realestate and other prices …well none the less to say that larger wealth disparities can contribute to inflation. Which is why fair distribution and taxation are important.