How money goes from the poor to the rich – Gary’s Economics
Rent, profit and interest are all the same, according to economist Gary Stevenson.
Not literally – they work in different ways – but they are all payments from poor people to rich people.
Here’s Gary to explain:
So you have to pay money to the owners of the resources, in all three situations – you have to work for that money, in order to let these people have it for no effort. They can then use the money to buy more assets.
We know that those of us who pay mortgages are only able to do it later in life, because it takes longer to accumulate the money to even think about a down-payment. This means that, by the time we’re 40, whereas our grandparents may have been nearly finished paying off their mortgage, and our parents around halfway through, we might have just started paying – and the amount we’re paying is more, plus interest.
This feeds in to Gary’s claim that each generation is getting progressively poorer than the last.
You can read more about that here.
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Thatchers world were everything sold of so the peasants don’t own. It well sales of council houses water gas electric whot about the banks allowing them to run riot ouch it’s getting worse until we find a party who take them all back wait for that day but holding my breath