Wealth is like a big pool. On the other hand, water is being poured into it, which is your salary savings. On the other side, there is water leakage, which is caused by inflation. The more your salary deposits are, the faster they will leak. In the end, it will be difficult for your wealth to achieve new breakthroughs and growth. The best way is to take out the water and replace it with chickens, and play the game of chicken and egg, and egg and chicken.
People are products of the environment, the economic base determines the superstructure, cultural attributes determine the level, and cognition and wealth lead to each other. When the country opens the gate and releases money, it will be given priority to financial institutions. People or companies with capital can get priority. The entire wealth distribution is like pouring honey into the pyramid.
From the top of the pyramid downward are: financial industry, real estate industry, high-end service industry, high-end manufacturing, low-end service industry, and low-end labor-intensive industry. The flow of water determines that in this world, the return on labor is less than the return on capital. This denies the saying that labor creates wealth. The real situation should be: labor obtains income. Capital creates wealth. It can be simply summarized into three things: money, capital, and labor.
The government distributes money to capital, and capital spends money to hire labor to obtain goods. Labor gets a little money from capital to buy goods, and eventually the money returns to capital. The two words "rich" and "poor" reveal the similarities and differences between the rich and the poor. The words "rich" and "poor" are the same, which shows that the house is a pseudo-asset. It is only a necessity for life and is not an asset. (In fact, many young people used to have a pretty good life. I don’t know who invented the idea of going to the city to work, buy a house, and buy a car. Now everyone has nothing)
The rich and poor have three places to go after getting their money: saving, consumption, and investment. Saving and investing are opposites, one option is to put your money in the bank and suffer some small depreciation. A choice to withstand big openings and closings, ups and downs in the stock market. When there are many depositors, additional currency issuance increases liquidity and harvests depositors.
When there are many investors, reducing currency reduces liquidity and harvests investors. People in the middle and lower classes are influenced by consumerism, entertainment, and nipple entertainment. After getting money, they first improve their lives. As a result, the poor have no money and the middle class has no time. The rich use most of their money to purchase assets, even through low-interest loans, and have their own rational consumption methods. People in the middle and lower classes use their excess money for savings. If things go on like this, the Matthew effect appears. Underclass cognition and poverty are cause and effect and entangled with each other, hindering class breakthroughs.
People from lower social classes also regard other people's kindness as stupidity and their cleverness as skill. On the contrary, high-level cognition and wealth are intertwined. People cannot make money beyond cognition. When a person's IQ does not match his wealth, the excess will flow back to the market in various forms. This society has 10,000 ways to harvest you until your wealth and knowledge match.
