Capitalism is a roaring success

Capitalism is a roaring success for those with wealth, power and influence. It has helped them accumulate more wealth, power and influence. Prosperity of the 99% of the population just doesn't interest anyone with wealth, power and influence.

Capitalism is a roaring success, but not for you and me. You and me don't matter.

The success of the 1% comes partly from economics, and partly from the Deep State which creates an environment where they are at an advantage.

Assume one needs $100k in the Western world to live well. An income of $200k leaves $100k as disposable income to invest. The rich and well off people just have more money to invest, whereas the middle class with shrinking incomes and rising cost of living have very little to invest. With limited savings, the middle class invests in low interest rate savings account. With more money to invest, the rich can invest in real estate and stocks with higher returns. The $100k investment also buys professional advice, and better deals to help money grow. All this is simple economics.

The middle class in the Western world are rewarded by pay raises and bonuses of 2-3% (if any). Their money in savings accounts pays 1%-3% interest. The money shrinks in real terms. In contrast, the rich and well off invest in real estate or stocks with generally 8-10% return on investment. The larger amount of money grows faster.

The second unfair and important advantage the rich have is that the Deep State creates an environment where they are at an advantage. Taxes are lowered for them, and the laws are tilted in their favor. Massive undeserved bonuses, expense accounts, and pay raises, lower taxes and tax loopholes, bloated valuations of their preferred stock, is the unfair and important advantage which helps their money grow exponentially.

In a capitalist society, it is routine to invest large sums of money in lobbying politicians and government in order to secure 10x or even 100x in payback from taxpayers money. In a pure capitalist society, such legalized bribes and lobbying make perfect sense for it has excellent Return on Investment (RoI). This ensures their unfair advantage stays and grows.

We expect the government and institutions to work for us but they would rather benefit from legalized bribes, being lobbied, and entertained by the wealthy and powerful.

We expect the government and institutions to work for us but they not only have their snouts in the trough, but their two front trotters as well.

Do we expect those who benefit the most from the system to change it? Is it realistic or practical to expect that?

Capitalism is a roaring success, just not for 99% of us. With the government, institutions, and corporations in an informal nexus known as the Deep State. This is unlikely to change.








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