Everyone knows that you need to have money to make money. No large surprises therefore in learning that the richest people of the world are growing much richer, whereas the poor appear to be getting poorer in purchasing power. The printing of money by the Fed and Central Banks increases money supply but of course that doesn’t mean that everyday people get richer – it means the opposite – increased money supply equates to inflation – or a drop in value / purchasing power of the currency. In essence, the more currency that is printed, the less the currency is worth and so prices go up. This is a great way for governments and banks to reduce debt (known as inflating it away) but the effect on the everyday citizen can be harsh as prices for necessities increase. It is a way to steal wealth from citizens – a control of powerful over the weak. Of course when governments and central banks print huge sums of money in an attempt to stimulate economic growth, they assume that the money filters down the system to the everyday man on the street. Rarely this is the case in reality, with the richest in society accumulating the wealth.
One of the effects of the current global economic situation is a reduction in the middle class who are pushed down into the working class. The powerful wealthy class grow wealthier / more powerful, and the weak working class increase – this stark financial inequality is of course the cause of revolutions and social upheaval – empires can fall as a result.
The ruling empire of the day is arguably the American Empire…but how does it compare to the Roman Empire before it fell?? Well the infographic below shows that now, the US is 50% more unequal than Ancient Rome!!!
In fact, the total income controlled by the Top 1% is drastically above that of the slave-included times of Ancient Rome and as high as the peak in the roaring 20s!