The problem with the economy is simple. Workers are paid minimum wage to work as long and as hard as possible. At the same time, goods and services are priced as high, and are made as cheaply, as possible. This simple formula creates two outcomes that are very easy to calculate.
One: It costs more to live than most employees can earn working forty hours per week.
Two: Most of society’s money flows up to business owners’ bank accounts.
The upward flowing money doesn’t trickle back down to the poor because the rich hoard it and/or spend it on expensive possessions. What little money does trickle down to low-wage employees, gets spent immediately on extortion-priced food, clothing, shelter, healthcare, education, and repairs.
The more money the rich exploit from the poor, the less money the majority of consumers have to spend. The less shoppers spend, the fewer jobs are needed to fill the customers’ demands. The higher the unemployment rate, the greater demand for jobs there is. The higher the competition for jobs is, the less pay, fewer benefits and longer hours applicants will agree to, in exchange for a job. The more businesses exploit their employees’ desperation, the more profit the owner can keep, and thus, the better the economy looks on paper.
When CEOs are getting rich, it looks like the economy is doing great, but ultimately, it means life sucks as much as possible for as many people as possible. That’s the fundamental problem with the economy.
If you enjoyed this post, you’ll also like these:
Predatory Capitalism Creates Poverty
- Poverty is the root of the world’s biggest problems, and predatory capitalism is the root of poverty
- The poor aren’t taking all your money. The rich are.
- 7 economic injustices we all accept
- The downside of economic growth
- Cost/benefit analysis of economic oppression
- How predatory capitalism warps the way we define maturity
- The lottery is a microcosm of America
- Stop talking about guns and start talking about poverty
- How the economy works (Comic)
Socialism and Communism
- Americans need to learn the difference between socialism, communism, and capitalism
- Billionaires won’t save you, and socialism won’t kill you
- Who will help me make some bread? (Short story)
The Life of the Rich
- The legacy of a billionaire
- The letter I’ll never send my CEO
- This Was Your Life: The billionaire (Comic)
- How becoming a billionaire works (Comic)
The Life of the Poor
- What it’s like to be poor
- My American Beauty-esque rant about life in America
- Why do poor people play the lottery?
- Why are Americans so violent and unhappy?
- You might be depressed because the system is crazy, not because you are
- The Adventures of Monk and Punk: Book 1 (Comic)
- Occupy LOL Street: The Plight of the Homeless (Comic)
Oppression in the Workplace
- Advice for young workers
- Stop treating people like shit and they’ll start giving a fuck
- 7 ways worker’s rights still need to improve
- 7 reasons minimum wage should be higher
- The injustice of employee contracts
- Professionalism is a straitjacket
- We need to do more to help people get the job they’re suited for
- The customer is not always right
- A Brief History of the Working Class (Comic)
Success and Retirement
- Life Path Flow Chart
- Why does it have to be so hard to retire?
- How to escape poverty
- Have a healthy balance of passion and duty
- Is it lazy to not want to work?
The Housing Market
- The housing market is a crime against humanity
- Suburbia is a sensory deprivation chamber
- How the housing market works (Comic)
Healthcare in America
The Stock Market
- How the stock market works (Comic)
- How bank greeters work (Comic)
- How freedom works (Comic)
- What America’s class and tax system really looks like
- 12 Things wrong with America’s tax system
- Why do so many small businesses fail?
- A novel approach to taxing the rich
- Introduction to cryptocurrency
- The most important factor in the value of cryptocurrencies, and how it applies to STEEM
Fixing the Economy
- My 1-point plan on how to save the world
- Humanity’s quality of life is relative to the quality of business model we use
- Politics won’t stop being evil until economics stops being evil
- Collapse is the product of unsustainability. Sustainability is the product of sustainability.
- The economy needs a love stimulus
- The world won’t get better until you stop being a consumer whore
- Buy a better world by donating dividends
- One dollar equals one vote in the economy