We are living in very interesting times: where the governments are helping the rich get richer by taxing the middle class.
A thread...
A thread...
1/The top 1% are making more and more.
And, the bottom 99% are making less and less.
And, this is by design.
And, the bottom 99% are making less and less.
And, this is by design.
2/Post 2008, the fascination with Quantitative Easing has been unprecedented.
Got any problems? Let's turn the printers on! And, print more money.
Got any problems? Let's turn the printers on! And, print more money.
3/More printing = more inflation (very high chance)
- During such environment the mandate of the government changes: it tries to fight high inflation with high growth.
- So they continue to support big businesses: tax rebates, debt at low amounts and whatnot.
- During such environment the mandate of the government changes: it tries to fight high inflation with high growth.
- So they continue to support big businesses: tax rebates, debt at low amounts and whatnot.
4/The Rich Get Richer dance continues:
US Politician, Elizabeth Warren explains how Rich Corporates post COVID are making even more profits.
But, passing on the costs (increased inflation) to customers.
US Politician, Elizabeth Warren explains how Rich Corporates post COVID are making even more profits.
But, passing on the costs (increased inflation) to customers.
5/Ideally, when more money is printed: even the middle class salaries should go up.
This unfortunately, is not the case.
Since, 2009 (right after QE1), the salaries in India had grown very slowly:
This unfortunately, is not the case.
Since, 2009 (right after QE1), the salaries in India had grown very slowly:
5.1/The majority of the money is hoarded at the top:
These are some of the recent pay hikes in India:
These are some of the recent pay hikes in India:
6/Summary:
- More QE=more inflation.
- Middle Class covers this through increased taxes and prices.
- Government in order to push growth keep giving rebates to the rich.
- The benefits are never passed onto the middle class.
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- More QE=more inflation.
- Middle Class covers this through increased taxes and prices.
- Government in order to push growth keep giving rebates to the rich.
- The benefits are never passed onto the middle class.
Liked the content? Please retweet.
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