The Rich Get Richer Every Day - The Upward Wealth Transfer Loop

30 May 2024
00:00 Intro
00:55 Intro to the inspiration for this topic.
05:30 "I don't think my story can happen now."
07:20 Is that true? I'll have to think about this.
09:30 Overly simplistic concepts to build the model on - Basic roles of People and Organisations.
12:30 Components of the diagram and the simplistic interactions between them - income, expenditure, labour, energy and materials.
17:45 Labour expense for the company, and how it's shared by the labour force of the organisation and how they become consumers, and their expenditure becomes the company's revenue.
19:10 Profit (Savings) = Revenue (Income) - Expenditure (whether for people or organisations). This is the goal for both Organisations and People.
22:00 The importance of, and imbalance in Negotiating Power between interacting entities (Companies and Individuals), and how it's leveraged to increase Profits (or Savings of certain individuals).
23:40 Negotiating Power of the Consumers is weaker in transactions, and, they are easily influenced by the other side (organisations selling their good and services to the consumers).
25:20 It's an easier task for Companies to convince consumers to spend surplus money than to convince suppliers to provide surplus resources for a given amount of expenditure. So, the companies spend more time and resources on this aspect.
28:45 The asymmetrical distribution of income within the individuals working in an organisation. Is the wage distribution rational?
33:35 Incentives playing a part in the squeeze is those at the bottom of the organisational chart
34:50 Organisations find it easier to increase their revenue (which is nothing but what is the sum total of the expenditure of the customers) so that's what they'll focus on.
35:15 Companies also want to reduce labour costs, and the people at the top are incentives to squeeze the people at the bottom.
36:45 People willing to work for less. Those at the bottom don't see an increase (or as strong of an increase as those at the top).
41:00 People at the top are Incentives to keep the wages of those at the bottom lower (but increase their own).
42:40 The interactions between the factors mean that the bottom is being squeezed on wages by being paid less for more work, whilst at the same time being encouraged to spend even more, and in each turn of the cycle a proportion of their money is hoarded by those at the top.
45:55 Value of money increases disproportionately to the nominal amount increase in the money.
47:30 Is this the reason why a 'rags to riches' story is less likely now than it has ever been?
48:50 Bringing it all together, how the rich get richer and the rest don't.
54:35 The American dream is dead.
55:20 What can the ordinary person do to escape this cycle?
56:50 Government and the MPs also contribute in this cycle of the rich getting richer and the rest not benefiting. The members of the Government Party are part of the top.
58:43 How the government 'help to buy' scheme (what I call 'government help to upgrade your home' scheme) didn't help first time buyers and actually ended up increasing house prices and making it even more difficult for first time buyers to get on the property ladder.
01:03:40 The government and MPs seem to always do what benefits them and their families than what benefits you.
01:04:00 The rich are milking those at the bottom and the bottom have no negotiating power.
01:05:30 The top 50% of the wealth of most countries is concentrating in the hands of a decreasing number of individuals.
01:06:44 A solution to the overly wealthy individuals problem. A thought experiment - Perhaps we can have a "Government Personal Expenditure Card" for those who have contributed the most to society.
01:12:00 The wealth inequality is likely to persist - The illusion of equal opportunity in the system.
01:15:00 The irony of it all - The bottom won't be needed anymore. They'll be replaced with AI and Robotics, be given a universal basic income. The death of their dreams to progress in life by working hard and having a fair share of economic progress.
01:18:22 Thank you for watching - Please like, comment and subscribe to the channel! 😊🙏🏽
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[@MyLifeOfficial]

00:00 Intro
00:55 Intro to the inspiration for this topic.
05:30 "I don't think my story can happen now."
07:20 Is that true? I'll have to think about this.
09:30 Overly simplistic concepts to build the model on - Basic roles of People and Organisations.
12:30 Components of the diagram and the simplistic interactions between them - income, expenditure, labour, energy and materials.
17:45 Labour expense for the company, and how it's shared by the labour force of the organisation and how they become consumers, and their expenditure becomes the company's revenue.
19:10 Profit (Savings) = Revenue (Income) - Expenditure (whether for people or organisations). This is the goal for both Organisations and People.
22:00 The importance of, and imbalance in Negotiating Power between interacting entities (Companies and Individuals), and how it's leveraged to increase Profits (or Savings of certain individuals).
23:40 Negotiating Power of the Consumers is weaker in transactions, and, they are easily influenced by the other side (organisations selling their good and services to the consumers).
25:20 It's an easier task for Companies to convince consumers to spend surplus money than to convince suppliers to provide surplus resources for a given amount of expenditure. So, the companies spend more time and resources on this aspect.
28:45 The asymmetrical distribution of income within the individuals working in an organisation. Is the wage distribution rational?
33:35 Incentives playing a part in the squeeze is those at the bottom of the organisational chart
34:50 Organisations find it easier to increase their revenue (which is nothing but what is the sum total of the expenditure of the customers) so that's what they'll focus on.
35:15 Companies also want to reduce labour costs, and the people at the top are incentives to squeeze the people at the bottom.
36:45 People willing to work for less. Those at the bottom don't see an increase (or as strong of an increase as those at the top).
41:00 People at the top are Incentives to keep the wages of those at the bottom lower (but increase their own).
42:40 The interactions between the factors mean that the bottom is being squeezed on wages by being paid less for more work, whilst at the same time being encouraged to spend even more, and in each turn of the cycle a proportion of their money is hoarded by those at the top.
45:55 Value of money increases disproportionately to the nominal amount increase in the money.
47:30 Is this the reason why a 'rags to riches' story is less likely now than it has ever been?
48:50 Bringing it all together, how the rich get richer and the rest don't.
54:35 The American dream is dead.
55:20 What can the ordinary person do to escape this cycle?
56:50 Government and the MPs also contribute in this cycle of the rich getting richer and the rest not benefiting. The members of the Government Party are part of the top.
58:43 How the government 'help to buy' scheme (what I call 'government help to upgrade your home' scheme) didn't help first time buyers and actually ended up increasing house prices and making it even more difficult for first time buyers to get on the property ladder.
01:03:40 The government and MPs seem to always do what benefits them and their families than what benefits you.
01:04:00 The rich are milking those at the bottom and the bottom have no negotiating power.
01:05:30 The top 50% of the wealth of most countries is concentrating in the hands of a decreasing number of individuals.
01:06:44 A solution to the overly wealthy individuals problem. A thought experiment - Perhaps we can have a "Government Personal Expenditure Card" for those who have contributed the most to society.
01:12:00 The wealth inequality is likely to persist - The illusion of equal opportunity in the system.
01:15:00 The irony of it all - The bottom won't be needed anymore. They'll be replaced with AI and Robotics, be given a universal basic income. The death of their dreams to progress in life by working hard and having a fair share of economic progress.
01:18:22 Thank you for watching - Please like, comment and subscribe to the channel! 😊🙏🏽