The powerful institutions, governments, politicians and wealthy individuals/multinational corporations who fund politicians, use four tools to keep people stuck in poverty or the middle-class:
One hundred dollars in 1922 would be worth just $6.21 cents today.
By increasing the money supply, Central Banks and their government partners can intentionally cause inflation. Too much inflation will cause a downturn in economic activity, commonly known as a recession.
When the money supply was backed by precious metals, such as gold, it made it difficult for governments, through their chartered Central Banks, to increase the money supply, as the chartered Central Banks would be required to increase the amount of gold held in inventory to match the increase in money supply.
This Gold standard, acted like a brake on the ability of Central Banks/governments to increase the money supply. For the most part, this kept the money supply in check, which also kept Inflation in check.
Once the world’s Central Banks/governments abandoned the Gold Standard, it was much easier to boost the money supply.
Inflation keeps people poor or stuck in the middle-class particularly because real wages never keep pace with inflation. This makes it harder, every year, for families to meet the ever-growing costs of housing, food and other living expenses.
While many may argue that real wages are controlled by the market-place, the reality is very different. Central Banks and their government partners, work together to intentionally suppress real wages. They do this by boosting the money supply, which eventually causes inflation. Too much inflation eventually precipitates a recession.
During inflationary periods/recessions these two partners respond by tightening the money supply. This tightening makes it harder for businesses to get banks loans or lines of credit. Businesses, in an effort to survive, are then forced to downsize to reduce costs, which increases unemployment.
Once inflation stabilizes and the recession subsides, Central Banks slowly open up the vaults, allowing banks to resume making loans to businesses.
After every recession, the number of unemployed always dwarfs the number of new job openings. Because banks are intentionally bleeding out loans very slowly, during a recovery, the unemployed are forced to compete with each other for the limited job openings.
With too many seeking too few jobs, the unemployed are willing to work for less money in exchange for a job.
High wage problem solved.
These Central Bank and government partners, in effect, collaborate to ensure that long-term real wage growth is suppressed, which makes it very difficult for ordinary individuals to break free from poverty or the middle-class.
Those struggling in poverty or stuck in the middle-class, become pawns of a system they have no ability to control
The fact is, in the absence of inflation, real wage growth is not that important. It only becomes important because of inflation, which is manufactured, intentionally or unintentionally, by the Central Banks and their government partners.
As a double-whammy, after causing inflation/recessions, the Central Banks and their government partners tighten the money supply by increasing interest rates on Central Bank loans to member banks. They will continue to increase interest rates until borrowers are unwilling or unable to pay those higher interest rates. This reduces the amount of loans made by banks and forces businesses to cut expenses in order to survive on the money they do have,. These two reactions to inflationary periods/recessions reduces the amount of money circulating within the economy.
Meanwhile, individuals who are struggling financially, due to the inflationary period/recession, often have no choice but to rely on high-interest credit card debt. Because of the higher interest rates, it takes them much longer to pay off that debt, making them slaves to the debt they borrowed in order to survive.
We live in a materialistic, consumerist society. TV/Video Streaming Services, Sports, print advertising, social media pop ups, website banners, Hollywood celebrities, peer pressure and music are all encouraging you to spend your money. The goal of this relentless consumerist suffocation is to separate you from you money.
When they succeed in separating your from your money, they win and you lose.
Governments primarily use three forms of taxation to keep people stuck in poverty of the middle-class:
- Income Tax – Tax on Income
- Sales Tax – Tax on Purchases of Goods and Services
- Payroll Tax – Tax to Fund Safety Net Programs Run by the Government
Taxation is the legalized theft of property. When Governments increase taxation, everyone suffers, particularly the Middle-Class, most of whom are working hard just to pay the bills and provide a decent life for their family
We are all forced to live within this Rigged System. This Rigging of the financial/economic system makes it very hard for the average person to break out of poverty or the middle-class to become financially free/wealthy.
How to Beat this Rigged System
One of My most important missions in life is to wake people up and help them outsmart and overcome this Rigged System. Almost every day I write articles to share my research, in an effort to help you break free from this Rigged System. Here are some of the most important strategies that will help you beat the system:
- Forge Smart Money Habits
- Don’t Be a Lifestyle Copycat
- Avoid These Money Mistakes
- Forge Good Habits and Eliminate Bad Habits
- Other Core Strategies on How to Beat the System
Those who religiously follow me often send me emails about how they overcame their poverty and changed their lives. That makes me happy because that is my purpose in life – to be of service to others and add value to the lives of others.
I do this out of Love and not for money. That is why you will never, ever see any advertising on my platform and why I give away so many books.
Just because the system is rigged against you doesn’t mean you can’t beat that system. I exist to help you outsmart the system and gain the freedom we are all naturally entitled to.