Capitalism is failing:
Capitalism is failing.
Capitalism has gone too far.
It’s been left unchecked for too long.
Disproportionately benefiting the rich.
Especially the extremely rich.
Asset inflation has exponentially outpaced the gains given to labour.
Especially since the 1970s.
Labour has not kept up with capital.
It will turn itself around again.
Just like it has before in history.
Unfortunately those time periods are tough.
The last big one was the period during the 1930s and 40s.
Most people know what happened then.
Our whole world was remade.
And sadly millions lost their lives.
Often innocent.
No reason other than geopolitics.
Being in the wrong place at the wrong time.
But there were class conflicts.
Significant ones.
We’re in the same period now.
Taxes have been shot down since post-World war 2.
Did you know progressive taxation was above 90% for the wealthiest people from 1945 to 1955 and was above 70% till 1980?
You know what else happened during that time?
The best ever time for the American middle class.
A strong economy.
Lots of jobs.
People being able to afford the basics.
Being able to afford housing and having a family.
Hard to do that now.
Everything’s become too expensive for most people.
The income that labour has earned has not kept up with the capital appreciation that the richest have earned.
Thus, more people’s quality of life has gone down.
Expect that trend to continue in the near-term, especially if inflation spikes.
Which history says that it will.
Look at the 1970s.
It had two inflation waves.
As per the chart above, we’re on the same track we were then.
Now add in a host of other issues and you have a powder keg of problems.
2 wars.
One in Ukraine.
A brewing one in the Middle East.
The possibility of conflict over Taiwan.
All of these could blow up any day.
That happens and watch the stock market collapse.
The Fed will come save it via the bond market and have inflation run away.
If we end up in that world, we will have conflicts similar to the 1930s.
Especially domestically.
The solution?
More money needs to be distributed to the middle class.
Taxes on the wealthiest need to be increased significantly.
Taxes should be handled in the locations where companies are doing business.
Not dependent on where the company is located.
Have high estate taxes.
Add an inheritance tax, or tax it significantly.
Stop funding forever wars.
What America is doing does not look like this.
Trump is planning more tax cuts for the wealthy.
That means even more inflation.
Means an ever larger divide between the richest and everyone else.
Capitalism is failing.
We need serious reforms, otherwise revolutions will come.
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