Income gaps are widening. The 'rich' get richer, the poor stay flat, or get poorer. At some point, (perhaps when we all run out of borrowing power) we will see the folly of incredible taxation and massive debts heaped on the 'average person'. Until then, here's why the middle class is losing steam:
1. As long as the middle class is taxed heavily, it's purchasing power and savings diminish. Hard to save what is taken from you. Hard to buy/invest with money you do not have.
2. Inflation is a disgusting tax that the middle class gets hurt by. Inflation effectively makes the dollar you earned lose power. Sadly, the Bank of Canada intentionally targets to destroy the value of your dollar by 2% per year (almost 3% this year). The 'free market' takes no prisoners and fails to increase Canadians wages in accordance with the planned destroyed wealth of 2%. US and EU printing seismic amounts of money are factors in contributing to inflation in Canada.
3. Crippling regulation makes hiring, innovation and growth very difficult...so companies do the wise thing and bow out. Until you let the free market be free, restrictions will continue to prevent growth that we are looking for and capable of.
4. We have a twisted mindset of a population that affirms a 'joint venture' between citizen and government. All this is done predominantly in the logically flawed name of 'compassion' and 'helping' others.
I doubt the population will see this and act (not humble enough, too selfish and money is still able to be printed, taxed and borrowed: so the game can continue). However, here is what you can expect:
1. Continued printing of money.
2. Continued reckless debt appreciation in the US (and likely Canada): now over 15 trillion (bye-bye 14's).
3. Continued regulation and increase of taxes in major economic countries.
4. Continued inflation with food prices, depreciation of hard assets
5. Fights over 'austerity' where a shotgun, loaded with debt as it's ammo, is about to blow a country apart and the people still stick their selfish, greedy hands out demanding more (Greece round 2...Italy is on deck).
6. A refusal of many to acknowledge the proper reality that we were designed to operate in accordance with a fee market that needs to be free in conjunction with a limited/proper/contained role of government.
All these 'macro' economic points have a damming impact on the middle class. The government you vote to save and protect you is ripping you off. Please, educate yourself and or others and make a stand. When we the people buck responsibility and shift it, (in this case, to government) you can expect disaster. Canada, think! Take back your responsibilities, namely you are responsible for the well being of your lively hood, not government! If this be true, don't complain for the government to right every social wrong: it's not their responsibility...it's yours.
This is one of the few articles I have seen posted that actually gets it. The wealth disparity is actually caused by the inflationary money printing. The rich can protect themselves from this by buying the things that benefit from it. Mostly commodities. The poor just get to pay the higher prices. In return they demand the government help them by creating even more inflation. Stupid is as stupid does.
ReplyDeleteinflation has been a problem since pet was elected. in just 10 years from 1970 to 1980 the dollar was inflated 100%. some years the money supply was increased by over 6%.
ReplyDeleteWell said - but in my lifetime this has always been the case. The rich get richer and the poor get poorer. It just never seems to get better for theaverage joe no matter what he tries to do. Living within your means is also difficult for many people. Sometimes they have make a choice between paying a utility bill or putting food on the table for their family.. Without a credit card some of them wouldn't make it every month. Heaven help if they have to go to the dentist or get a prescription if their company doesn't have a plan. What is the answer?
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