There are 540 billionaires in the United States with a combined net worth of $2.4 trillion dollars.
There are roughly 126 million households in the United States.
If every billionaire liquidated and spread their net worth across every household in the USA, every household would get a one time $15k payout. Would that solve anything? The average household credit card debt is $16k in the USA, so the billionaires of America could maybe pay off half of folks’ cards…. big whoop.
The media loves to side with the little guy and make the big money lads and ladies the corporate evildoers, but they don’t often get into the realm of lending policy and shrinking labor demands in North America.
Sure, the ridiculously low prime interest rate is good for getting people out there buying things, but they’re doing a lot of it with borrowed money. The average household income in the US is just shy of $60k.
The result is the whole shrinking middle class (which isn’t shrinking as quickly as media outlets want you to believe) – but it’s a mess when interest is low, demand for things is high, prices go up, and lending gets out of control as banks find every possible cent they can squeeze out of the average income earner.
So great, we’re in a monopoly money economy. But it’s not great for those scootching ever closer to the NEW poverty line – as cheap homes and lucrative work grow ever further apart, we’re forcing folks to get loans for a car to commute because it’s cheaper than the close-to-work homes where demand has inflated home prices to levels unattainable the average person. Couple that with gas prices that seem to find a new price floor every week, insurance tied to your commute distance, availability of child care and inaccessible transit options; what are folks on the frugal end of the income spectrum to do?
As a Canadian, living in a socialist megalopolis that is Toronto, our government relies on socialism to try to create equity (don’t even get me started on Liberal lazy handouts and vote buying) – those taxes squeeze even affluent households that found themselves buying at the ludicrous limits of mortgages and car loans. It’s ever more cut throat down south.
Wanna not be poor kids? Yeah? Don’t borrow money. Keep your credit card paid off every month. Keep a positive net worth and let your money make money instead of borrowing $30k for a car and paying $50k after interest over 7 years. Pay for your stuff in cash when you have it. Pay your house down by doubling down on your mortgage payments.
The billionaires aren’t the problem. Out of control lending is. Our economy works better when the buying power isn’t struggling to pay the minimum payment on their credit card.
WHERES THE MONEY LEBOWSKI?