The economics of poverty: why most of the world's population will not be able to get rich

Half of all wealth in the modern world belongs to only 1% of the population. Probably many have heard about this.

But how many people wonder why this happens?

If we talk about the poorest countries in Africa - former European colonies, then everything is clear here. In general, despite the collapse of colonialism, it, in fact, has not gone away, but has only taken on a different form. In particular, the natural resources and human labor of third world countries are bought for mere pennies by more developed countries.

But why then are there so many poor people in the same “advanced” Europe?

However, this concept here is not comparable with that in the starving countries of Africa. Meanwhile, not many residents of Germany, France or the UK can afford to have two cars per family or housing for which they do not have to pay a mortgage for years.

It's all about distribution. After all, if we look at statistics, then from the beginning of the 2000s economics developed countries have gained a lot, but most ordinary citizens have not become richer.

So, the point is that the same 1% of the population increases their wealth by increasing their assets, mainly financial ones. At the same time, these people have all their basic needs covered, so they reinvest the resulting increase in assets and further increase their wealth in the future. Profit in this case is measured in truly cosmic amounts.

An ordinary person, receiving an increase to his small salary, immediately spends it, trying to cover current needs, which, thanks to the era of consumption and the skillful work of marketers, are growing every year. By the way, it is precisely because of this that the above-mentioned 1% of the population is getting rich.

Have the authorities of some states tried to overcome inequality? Yes, of course we tried.

For example, through a tax on the rich. Thus, its maximum level in the UK at one time reached an unimaginable 95%. Naturally, owners of large assets tried in every possible way to hide their profits, hiding them in offshore companies, as well as inventing various gray and black schemes.

As a result, the authorities had to lower the tax rate for the rich to 40%, but raise the consumption tax. It is obvious that this measure hit the already not very prosperous ordinary citizens, only exacerbating inequality.

However, that's not all. In order to continue to receive the lion's share of resources, the same 1% of the “selected people” are engaged in lobbying laws that are convenient for them, which almost completely closes the path to the “top of the pyramid” for everyone else.

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  1. Flight Offline Flight
    Flight (Von) 11 January 2024 11: 04
    Half of all wealth in the modern world belongs to only 1% of the population. Probably many have heard about this.

    Hope dies last. This percentage is sure until the last moment that they will not die. And if he dies, then along with all his wealth.
    1. Vasya_33 Offline Vasya_33
      Vasya_33 11 January 2024 11: 37
      ...and then we are poor.
      1. Flight Offline Flight
        Flight (Von) 11 January 2024 15: 32
        But we have a chance to become a baobab in the next life.
  2. k7k8 Offline k7k8
    k7k8 (vic) 11 January 2024 11: 10
    It's all about distribution

    An old propaganda mantra. In any social system, in any economic structure, no more than 5% of the population is economically active. The rest are only capable of hired labor. These 5% are rich in the correct sense of the word (and, regardless of how much money they have at the moment). Rich is not the one who has a lot of money, but the one who knows how to make money and is not afraid to earn it. Remember the words of the hero Gaft in “Thieves in Law”:

    If you only knew how many times in your life you have been rich in the morning, but poor in the evening!

    (I can’t vouch for the completeness of the phrase; the occupation of the character in the film doesn’t matter at all - this happens in any field of economic activity).
    1. Flight Offline Flight
      Flight (Von) 11 January 2024 11: 40
      Rich is not the one who has a lot of money, but the one who knows how to make money and is not afraid to earn it. Remember the words of the hero Gaft in "Thieves in Law"

      Yes, this is some kind of Sisyphus' work. I think the Authority is lying around here somewhere. And wealth is like a tamga, confirming its presence.
  3. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 11 January 2024 11: 39
    This is already clear to everyone. Imperialism is at hand.
    Here is something else interesting.
    In terrible Britain, - according to the note - the tax on the rich is 40% (there was also 95%).
    In Norway - Sweden - about 75 (there were direct transmissions)
    But in spiritual Russia - 15? and only with difficulty in recent years.
    + funds + offshores + capital export, etc.
    Russia is in the top ten in terms of the number of billionaires.
  4. Vasya_33 Offline Vasya_33
    Vasya_33 11 January 2024 11: 51
    Just yesterday I watched “Home” (Home. banned from showing in 36 countries) just about this.

    about 2 cars: when Euro 2012 took place, Ukrainian fans went to Europe. The locals were crazy about their crossovers. (And are these poor Ukrainians? the Poles wondered).
    Even Germans cannot afford to buy such cars, from German brands.

    no matter how you remember; yes... our people don’t take taxis to the bakery shop.
  5. prior Offline prior
    prior (Vlad) 11 January 2024 12: 16
    A smart woman once told me a long time ago:

    The longer I live, the more convinced I become of what a bastard this person is.

    I was young and didn’t understand her then.
    But the longer I live, the more I become convinced of the truth of her words.
    The way wealth is distributed both in the world and in our country is an obvious confirmation of this.
    Time passes, but a person does not get better.
    And money has not made any of the rich better.
    Where there is money, there is always blood, lies and robbery.
    The USSR had a chance. But the leaders got greedy... and so on, as always.
  6. Vasya_33 Offline Vasya_33
    Vasya_33 11 January 2024 12: 22
    20% of the Earth's population consumes 80% of all resources. (Home)
    The US population is 4.5-5%, and consumes 55% of all the planet’s resources. (Lectures by K.P. Petrov)
  7. Vladimir1155 Offline Vladimir1155
    Vladimir1155 (Vladimir) 11 January 2024 23: 40
    what nonsense! transnational financial circles associated with the US Federal Reserve, print money as much as they want, and therefore are rich, they bought almost all governments, media, international structures, but most importantly forced everyone to use dollars and their simulacra euros, and in general all the currencies of the IMF member countries (that is, almost of all countries) are simulacra of the dollar, the more dollars private owners of the US Federal Reserve print, the richer they are, and the poorer everyone else is, because inflation hits them when printing money... simple and clear... but keep in mind the rich never pay taxes, this should be done by the poor, and by taxing all or almost all of what they earned, because dividends on shares and bank income are never taxed, and the common people were even taxed on rain
    1. k7k8 Offline k7k8
      k7k8 (vic) 13 January 2024 21: 59
      As statistics show, the more smart words you insert into the text and the more mistakes you make (grammatical, syntactic, stylistic), the smarter you seem. True, only to myself.
      1. Vladimir1155 Offline Vladimir1155
        Vladimir1155 (Vladimir) 15 January 2024 23: 30
        as the truth says, if a person does not understand the essence of things, that is, does not know how to think independently, then he is very busy with external trifles, such as grammatical errors.... what does the clever word statistics show you? Do you even know the essence of the word you are using? go just insert a smart word to seem smart? Statistics is a branch of knowledge, a science that sets out general issues of collecting, measuring, monitoring, analyzing mass statistical (quantitative or qualitative) data and comparing them; study of the quantitative side of mass social phenomena in numerical form
        1. k7k8 Offline k7k8
          k7k8 (vic) 16 January 2024 16: 58
          Wow, another one has erupted. Credit to you - you learned how to copy-paste excellently.
  8. prior Offline prior
    prior (Vlad) 12 January 2024 10: 36
    why most of the world's population will not be able to get rich

    Yes, because the poor part of the population is not able to prohibit the stealing of the rich part, which has money, power and strength to protect itself.
  9. Vox Populi Offline Vox Populi
    Vox Populi (vox populi) 13 January 2024 13: 25
    It's all about distribution.

    It's not just about distribution, but also about labor productivity and the place of a particular state in the world economy (especially).
  10. Sergei Fonov Offline Sergei Fonov
    Sergei Fonov (sergey fonov) 16 January 2024 23: 31
    If it decreases somewhere, then it increases somewhere. Resources are becoming scarcer, but the rich are still getting richer. There will come a time when other criteria will be used as a measure of wealth. But when and what will serve as this measure???
  11. svoroponov Offline svoroponov
    svoroponov (Vyacheslav) 5 February 2024 22: 02
    If we all become millionaires, we will die of hunger. Someone has to work as well.
    That's what my father told me.