Wednesday 21 December 2016

RETURN OF CAPITAL vs ECONOMIC GROWTH

If The rate of return on capital  is greater than the rate of economic growth  over the long term, the conclusion  is concentration of wealth, and this unequal distribution of wealth causes economic and social  troubles.

But we think it s impossible to compare "return on capital" and increase of income based on the economic growth ....

The capital is massively based on some financial bubbles and cheap money ..... Getting an easy access to the money supply is the major element to become wealthy .... If the prices of Real Estate or others tangible assets increases, it s only because the value of each unit of currency decreases .....

An increasing income is based on the fact that we don t understand the essence of capitalism is deflationist .... "Doing more with less" , more robots, more computers, less enployees ....

In an industrial society, we could pay the salarymen to buy the products they made themselves in the factory .....

But what happen currently in an economy of services ??? .... people must become more independent ...

we don t think a worldwide tax on the wealth is useful , we think people must get an equal access to the financial liquidity .....

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