/biz/ - Business & Finance

>>23117451
This bugged me for a long time. reading this helped, relevant pic related.
> https://www.epi.org/publication/understanding-the-historic-divergence-between-productivity-and-a-typical-workers-pay-why-it-matters-and-why-its-real/
Things of note
> 1%ers are incredibly rich. Unfathomably compared to the average person.
> 99th percentile is 430k ish+
> 95th percentile income is a hair under 250,000 USD/year
> 90th percentile is 185k ish
> 50th percentile is 63k ish (Your income is probably around here or less)

tl;dr. America got jewed pretty hard going off the gold standard. 1% are in their own world of unfathomably wealth, while 95-99th percentile folks get finger pointed at for being at the top of a broken system. Since assets are finite and tend to stay in the hands of families / corporations, there is little to no trickle down (as some economists still think is a thing). Over long time periods, there is simply no trickle down, and you're stuck with the situation you see today- better to rent out a property for cash flow than ever actually sell, since assets grow over time no matter what you do. The system is already at breaking point, but it seems like detaching currency from a physical asset that can appreciate (gold, whatever really) quickly causes a two tier system to form. Asset/cashflow holders, and those with just cash (basically nothing).

Ironically capitalism works quite well for things like consumer goods. Look at the car you get for $15-20k now compared to 20 years ago, The cost of features across the board has been squished down. Same with TV's, computers, etc.