This investigation has been a useful exploration of making simple and clear what is hidden beneath the very complex and manipulated wealth balance. I have had a couple of new realisations.
- The rich devalue a currency
- The rich starve a government of taxes
A currencies worth is based on how the people value it. What they are willing to exchange for it. The greater amount the difference is between the poor and rich, the greater the worth difference between these groups of people. When poor people live off 100 euros a week, the value of 100 euros is an average requirement. If a rich person lives off 10,000 euros a week the value of the 100 euros is a tiny amount of money. It can buy very little due to the purchasing power of the rich person. If the rich person lived off 200 euros a week and the poor person lived off 100 euros a week, then the 100 euros is worth a lot more.
The rich are well known for being able to avoid paying much of the tax they are considered by most people to be paying. They invest greatly into schemes and loop holes which enable them to escape from the expected taxes. If the rich did not have control of such large amount of currency and is was flowing through the society, the governments would be able to receive much more tax during transactions between people. eg: 100 million euros in a society. 50 million euros are held by the rich who are able to not pay any tax due to the many games that can be played to avoid paying tax. The remaining 50 million euros are flowing between poor people who are paying normal taxes. This means that only half of the tax that could be collected for government use is being received.
This means that half of the money that should be available for social services, schools, hospitals, security and all other elements that the society require are being kept by the rich.
It is becoming clearer to me how the rich who are so often praised and admired are actually a toxic burden on a society. I look forward to further evaluations and investigations into why this is so. It also has become evident that I cannot provide the solutions for these situations as they are large society based values and attitudes which need to evolve and develop. However I can make it clear what the situation is, which is the most important part to being able to empower people to make a cultural change together.