Why Wealth Doesn't Transfer Through The Glass Ceiling steemCreated with Sketch.

in money •  2 months ago 

When we grew up, our parents told us we could be anything we wanted to be and that the world is filled with opportunities, and they aren't wrong. There is plenty of ways to make a success of yourself in this world, but as the years go by the cost of doing business has gone up.

There once was a time when you could pick yourself up by the bootstraps and toil in your craft and be rewarded for the value you bring to people and the market but this is more of the exception than the rule.

Those who on top, remain on top and the rest pretty much hit a glass ceiling they cannot seem to break out of, in recent years social mobility as been in rapid decline as our best and brightest become marginalised in favour of the politically and financially connected.

Wealth has become so concentrated that those who have it not only do their utmost to retain ut but have engineered the system to reward themselves for well, being rich.

Income inequality

We hear endless stories about how capitalism is the problem and how corporates are to blame and the rich are conspiring to extract all the wealth that they can and to the extent that is true, but it's only a part of the puzzle.

How do the rich and the corporates make and store all this money? Through the easily manipulated fiat money system of course. As banks and governments continue to print money in the hope that it will generate the velocity of exchange, shoot up GDP and kickstart the economy so we can pay our way out of the hole with new ways of creating value the money flow has a problem

Money created from a central point has to flow from a small funnel into a more significant conduit over time in what they like to call a trickle-down approach.

Glass floors protecting opulence

Image source: - telegraph.co.uk

Old money has priority on new money

As the banks flood the market with new money those who get first access to it are the ones with more substantial reserves already in place, they can make loans and acquire cheap money, they can pitch for government contracts and get access to more significant parts of the pie which they then sub-contract and a sort of middle man stripping of the cash reserves goes into effect.

By the time it gets to where its needed by the guy on the ground, inflation has ruined the buying power and those who have to work/trade time for cash get a worse off deal, and so the cycle continues as they strip away wealth from workers.

We need a new "new money."

The only way to break this effect is to separate money production from the banks and the government and not to allow central figures to dictate where cash should be allocated. To do this, we needed a new kind of money, money that requires no central planning and this is where cryptocurrency comes into play.

We need a money that everyone can have access to, that cannot be watered down, that cannot be stripped from people, that isn't subject to theft via taxes and a money that can improve its buying power with time.

Fiat money has created this inequality, and if you want to take a stand against it and opt-out, there are plenty of blockcahins ready to help you make that leap of faith.

Let's connect

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Your point is well taken - that the wealth is concentrated in a few hands. But it is the same in the crypto world as it is in the fiat world. I think that Steem is a great example of that. most of the content creatures are not up there in the whale ocean... Just saying...

Oh for sure you were never going to build a system that stops those with resources from outpacing those without but we can build a system that closes the gap.

  • A system where work outweighs capital
  • A system of hard money so with limited and monitored inflation those buying uprise the buying power and so a rising ride lifts all ships

This is what crypto and to an extent steem can give us as it grows. It s by no means a silver bullet but it is a step in the right direction.

Agreed

I never heard I could be anything I want, neither those stories about capitalism.

The thing with the new new money will not work. It is not in the human race not to be a central figure. You just need one who... and this person is seldom the government. We already see how steam it inc. influences Steem.

I agree it would be best but that will always be a utopia. Look at this platform, the ways people find to get rich and break others, not willing to invest in others.

I wish you a great day.💕

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That would indeed be a utopian ideal but what I'm thinking is not for crypto to absorb everything but for us to find a balance and have a safe haven to be able to spread risk between the two. If we feel one system is being abused as we see with fiat we can opt for another and move capital between the two to keep them both in balance.

There is no reason we can't have both government and private money I just think government money should be backed by hard assets and no fractional reserve banking

@chekohler I agree with that plus hope that not only one greedy stands up and runs but also that people have the courage to switch instead of staying where they are out of fear or laziness or...❤️

This is an interesting idea and a good write up. I think you have identified the reasons for the failure of trickle down, the predominant for of corporate welfare with corporations acting like they must keep all stimulus capital given to them with money taken from the workers through taxes and redistributed to corporations to make more jobs or raise wages, but they don’t.

It is indeed a sort of corporate socialism and the furthest thing from a free market. Competition is either squashed out by price manipulation through access to cheap money or they are acquired. The working economy is 4 times smaller than the financial economy and that to be is a huge problem. They will continue to strip and exploit human survival needs until civil unrest is too great.

The only way we have no to opt-out is a cryptocurrency and I think within the next 10 years once the baby boomers are moving into retirement and pulling their money from the markets we will see a big change in the financial economy, it will have to accept its shrinkage or continue to fraudulently and recklessly abuse their ability to print money

Sounds ideal but would it really work?

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Probably not perfectly no, there are way too many smart people with resources who will find a way to manipulate it in their favour once again. Which is why it needs to be a phased roll out like what we have no so we can patch and change things as we spot abuse.

Let them have their fiat money system and let them ruin it. If we all those who work for their cash move over, the financialised economy has nothing to back it up.

Move ourselves away from the Fiat system 👍

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That new new ! Of course I think it’s worth considering that no matter what the means of exchange is or where it comes from, without a a complete shift in our current conditioning to compete for marginal temporary gains the funds will end up back in the hands of the owners. Trickle down is a myth as in this world finance is anti gravity.

But in the meantime I’d be happy to barter and exchange a borderless p2p currency for the things I can’t and/or don’t wish to create myself, which is basically everything because the system has created a dependency in me.

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It's created a dependency in all of us😡

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Hey you were at least able to fix up your vehicle 🚗 that’s exactly the kind of stuff I don’t have the tools or skills to do but should. I have had a cracked rear bumper for months that I’m sure you would have had spruced up in a jiffy. Im not totally inadequate but I’ve seen enough ingenuity in my day to know I lack many skills for having grown up mostly not knowing what it is to go without or be forced to use what you got to get what you need. I am willing to learn though and accept my inferiority when it comes to the handy dandy stuff.

Posted using Partiko iOS

Yes thank you. What I really mean is we have lost so much independence of almost everything as most just go to work in their little field of knowledge and just pay for everything else they need. Not many can do most things for themselves now.

Posted using Partiko Android

Indeed, and we tend to live with blinders on as well. Strangely though, I’ve read that the average person will change careers at least 7 times or so in their lifetime these days. Just a generation ago most people only changed careers maybe once in their lifetime. What really makes me think is wondering what jobs will be available for the kids we have at our preschool and all the studious boys n girls that basically do nothing but eat,sleep, and study here in Asia.

It was difficult enough 20 years ago when I became a young adult to know how I wanted to play the game, I can’t imagine what it’s like now knowing that our world will likely look way different in 20 years. It’s difficult to see most of the toiling I see around me having a purpose and where does that put me as 58 year in 2040 🥴

Posted using Partiko iOS

That's what really gets to me too we're now a bunch of people with "skills" suited for an artificial market. instead of having the skills to feed and clothe myself I need to fix websites to get money to get it from someone else.

It's madness, this system is so far gone. We're so dependant on money now. What really grinds my gears is how hard they make it to support your local produce creator, you have to buy it through these financialised middlemen

Well it won't hurt to keep stacking Satoshis! Freedom to the people!

Yes sir, I am totally down with that and don’t look back at 2010 when my friend showed me the darknet and the btc I’d need to buy drugs. I spent the next 8 years ignoring the tech and assuming it was a pipe dream. 🤦🏽‍♂️

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The way I see it is you can't go wrong with BTC. Eventually, I see it as a reserve currency, no one will want to spend it because it's so valuable so you'll leverage it like a home.

Say I have $100 000 worth of BTC I can lock it into a smart contract and get a fiat loan with my BTC as collateral, do what I need to do and pay back my loan.

BTC is hard money its only a matter of time till the rest of the world sees it, and until then I'll be tracking precious sats!

I totally agree with this

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That's for sure mate😀

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And when will people want to change and use crypto instead of fiat? Only when you 100% do not rely at gouverment I think (like almost anarchy). Like venezuela. That is not a good way.

I think and hope that fiat and crypto can live hand by hand. They have to different positiv things. Some people need a gouvermnet and bank that hold them in their hand every day- some do not.
I like liberty - but also liberty to choose to go to a central bank.

Good text today !

You're probably right it will take a collapse for people to realise they need to look at storing their wealth and buying power in something else.

It probably will live hand in hand, I can see wall street and investors becoming greedy and seeing cryptos ability to hold buying power and with all the cheap printed money being injected more and more of it will flow into crypto as gold and other commodities become overpriced.

I don't think people are ready to manage their own wealth on the level crypto provides and they will still need government money and mixed portfolio of both

What do you think about crypto and investment?
Sometimes I see it like a barrier for crypto to be used and massadopted.
It is easy to find "how to get rich at crypto" but that was not the idea from the beginning.
As long it is more a "investment" than "use it and see the positive things" the money will be locked.

Agree?
Steemit is a perfect way to USE crypto even if you do not pay something. But it makes transactions and we use its infrastructure. But how many use Dash and how many just hold it like an investment.

Time to work... And if you are in Stockholm at friday - come and celebrate my 40 years day!

I agree yes, there isn't much use for most cryptos other than a speculative store of value at the moment. While a lot of people talk about the barrier to entry I don't believe that to be entirely true when we compare crypto to traditional assets.

Have you ever tried to buy shares in a public company? Open up an investment policy? It is far harder and the fees far more expensive. There are very few people invested in those asset classes they just have a lot of money

Crypto can reach way more people than anyone owning a share of Facebook or Apple.

As for spending it I think that comes with time, there isn't enough liquidity for people to be spending and taking in and out of the system to hold a safe fluctuating value range. That comes with time, I'd say BTC would have to be a million dollars each before we'd see an uptake in spending it as we could use the Satoshi easily and the lightning network to have sub satoshi transfer fees

I'd love to come to Sweden someday when it's not cold!

"Have you ever tried to buy shares in a public company? "
Yes - it takes 3 minutes in Sweden. We have an excellent system and ID-controll online!

"I'd love to come to Sweden someday when it's not cold!"
That is the same as saying "I will buy BTC when the price is 1USD" GOOD LUCK !
(Ok - I should not complain - in summer we have 20 and that is perfect)
image.png

Well that's Sweden and you are an investor type, the average South African I can tell you doesn't own a share in any company, same as the rest of the world. Lol Remember you need a bank account, most Africans don't have one.

We use the stores to transfer money or cellphones airtime

Lol okay, you have a point. I'll come to Sweden when Deutchebank collapses taking down the entire Euro zones economy and I can come there on the cheap. I was reading Scandanavia has the highest living expenses in the world :P

Yes thats true.
We have a high livingstandard with a lot of money for the house/departement.
Can Think of that the climate is One part. But not Only.
High tax (but Free School and healthcare)

In Sweden Maybe 80-90 % have bonds. (In funds) That is the way of saving money

Posted using Partiko Android

Can't say I know a thing about Sweden or how people live there

But personally I've never been a fan of we get "free" this and "free" that. Free normally comes at a larger cost than it ever would for the individual to buy it and in my experience, free stuff is normally shit quality

I'm a big believer in people know what's best for them and putting more money in peoples pockets is never a bad thing.

Tax is wealth centralisation and the majority of the money doesn't make it to those who need it or who we're told its used for. From our side, we also get pretty much taxed to hell but we don't have a middle class like Sweden to support all those who aren't working so that money can't provide for basic services

Scandinavian countries are always seen as the example of how taxes can work, but I don't think it works for every country there are more factors than just taking peoples money and telling them we know how better to use your money than you do

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