Tag: economics

Economic Black Holes: The Threat of Extreme Wealth Inequality

I think those with wealth and power seek to sustain or increase said wealth and power. The system’s not flawed from the players perspective it is simply one to be used and manipulated to bend to ones own rules and will.

We don’t need monarchs to supress and control us, as we now have a feudal system where the masses work or starve for millionaires and billionaires.

The desire for political and economic domination among wealthy individuals stems from a complex interplay of psychological factors, the nature of wealth accumulation, and systemic influences.

Key reasons include:

Power and Control Wealth provides power and influence, which some individuals enjoy exercising over others. The ability to control one’s own outcomes and exert influence over others becomes an appealing strategy for maintaining status.

Personality Traits Psychologists have noted a correlation between high socioeconomic status and certain personality traits referred to as the “dark triad”:

Machiavellianism: A willingness to manipulate and exploit others for personal gain.

Narcissism: An over-inflated sense of self-importance and entitlement, coupled with a lack of empathy.

Psychopathy: Characterized by a lack of empathy or remorse, antisocial behavior, and a desire to dominate others.

Systemic Reinforcement In highly unequal societies, dominance-based strategies can be more effective and carry less risk of backlash, as those with less power have fewer resources to resist. The existing system often rewards selfish actions, creating a feedback loop where those who engage in such behaviour become wealthier and more powerful.

Fear and Insecurity For some, the drive to accumulate and maintain power is rooted in fear—a fear of losing their status, security, or identity.

Addiction and Competition The pursuit of power and wealth can become an addiction, as achieving success can trigger dopamine responses in the brain. This is often reinforced by a competitive mindset, where status is a relative game, and there’s a constant drive to be “on top”.

Lack of Empathy The wealthy may live in social “bubbles,” isolating them from the realities of those with fewer resources and leading to a reduced capacity for empathy for those in lower socioeconomic classes.

Mega wealth can form economic black holes that suck up and damage alomst everything else in its path.

Extreme wealth concentration is widely reported by major economic institutions as an ongoing and accelerating issue that leads to significant economic and social damage, effectively acting as the “economic black holes” you describe. It exacerbates poverty, distorts democratic processes, and can impede overall economic growth, particularly in developing nations. 

Current State of Wealth Concentration

Recent reports from 2025 highlight the severity of the situation:

  • Millionaires own nearly half of the world’s total personal wealth.
  • The top 10% of earners in the U.S. owned almost two-thirds of the total wealth in Q1 2025, while the bottom 50% owned just 2.5%.
  • Between 2000 and 2024, the world’s top 1% captured 41% of all new wealth, compared to just 1% for the bottom 50%.
  • A recent study found that the world’s richest people own three times more wealth than the bottom half of the global population combined. 

Key Economic and Social Damages

The effects of this wealth concentration are far-reaching and consistently linked to negative outcomes:

  • Impeded Economic Growth: While some level of inequality might incentivize innovation in developed economies, research in 2025 indicates that excessive inequality generally acts as a brake on growth, especially in developing countries. This is partly due to reduced aggregate demand and underinvestment in human capital (education and healthcare) among lower-income groups.
  • Increased Poverty and Precarity: High wealth inequality drives poverty and economic insecurity for those at the bottom. The absence of a financial safety net means many households struggle to manage unexpected shocks, and a significant portion of the population can have net negative wealth (more debt than assets).
  • Distortion of Democracy and Power: Extreme wealth translates into disproportionate political power, allowing the rich to influence rules and policies in their favor, such as through lax inheritance tax laws. This creates a vicious cycle that entrenches inequality and erodes public trust in institutions.
  • Amplification of Other Inequalities: Wealth disparities amplify existing inequalities based on race, gender, and geography. For example, studies show significant wealth gaps between ethnic groups and a substantial difference in average wealth between men and women.
  • Environmental Harm: Consumption patterns of the wealthy elite drive higher carbon emissions, while the poorest populations, who contribute least to climate change, are often the most vulnerable to its impacts. 

Regional Inequality

Wealth inequality is a global issue but is most severe in certain regions. Brazil, Russia, and South Africa have the highest Gini coefficients for wealth inequality in 2024, indicating a highly concentrated distribution of assets. In contrast, countries like Slovakia and Belgium exhibit more even wealth distribution, often attributed to strong social safety nets and policies promoting broader asset ownership.

Future Outlook and Recommendations

Experts warn that without significant policy interventions, such as progressive taxation and stronger social safety nets, the current high levels of inequality are likely to persist or worsen. The next decade is projected to see trillions of dollars in wealth passed down through inheritance, which, in the absence of effective inheritance taxes, is expected to further entrench wealth disparities and undermine social mobility.

Our capitalist designed system is not set to act in our interest! 

Capitalism is an economic system where private individuals or businesses own capital goods like factories and resources, rather than the government or state. The goal is to produce goods and services and generate profit, with supply and demand playing a key role in determining prices and resource allocation. 

But in our global system, capitalism enables the wealthy and powerful to not just own business and means of production but ownership and direction of our governments, public perceptions of reality through the media and a persuasive overarching state of opinion on what should be considered successful, truthful and normal over what is considered a failed system, abnormal and even a lie. 

We operate and exist in extremely complicated economic global structures which dependent on where you look at it from can look extremely pleasing e.g. for those with wealth and power and control its a system within which they see considerable benefit for themselves but to those that live in areas of the world that are exploited such as taking away ecological resource being harvested and irreversible destroyed for economic gain such as the destruction of tropical rain-forest or the abstraction of finite minerals and other resources or even worse those living in an area where there are wars or violence inflicted on people as a means to obtain wealth, power and control things are a lot worse when your being exploited at the expense of the person that is exploiting you.This can be done through both legal and illegal means of exploitation.  

The most logical means of production and consumption to a maximum number of people at a competitive price should be by individuals and organisations but just as ‘power corrupts, and absolute power corrupts absolutely’. The cost to humanity, our ecosystem and our governments integrity should all be priced into production, the means of production and our ability to consume and sustain our ability to produce and consume. 

Our governments today are not deep thinkers and do not show signs of thinking outside of the box of tools within which they think they are provided with. Capitalism and consumption should not be at any cost. A system that eats itself, destroys its own environment and severely impacts on humans within its own sphere of influence is not a healthy form of government and should therefore not be aspired to or believed to be the only economic game in town.

Just because the exploitation that feeds your economy take place on  a global scale and not in your back yard does not mean that the people within positions of power whom exploit others that live within your countries are not in some way responsible for the exploitation of the globe, the chances are the greater wealth that is obtained by someone in this world will likely be at the expense of the planet or the humans within which live upon it that have been exploited in order to capitalize on said wealth   

Just as bees collect pollen and produce beautiful wondrous nests full of honey. We as creatures must consume to exist and wondrous things have and continue to be produced as we consume and exist. As we produce and engage in ever wondrous antics to assist us to hopefully at first survive and if and when possible thrive. Consumption to exist and where possible thrive is very much in our nature but just to be a capitalist being born to exploit at the expense of others is perhaps perceived as normal but not truly necessary or sustainable into the future. 

A healthy society of consumers needs to have strong and robust legal system designed to prevent genocide, ecocide and other forms of manipulation, destruction and death across society so as to maximize the amount of sustainable growth and consumption but not at the expense of those with power, wealth and money being entitled and enabled by our political, legal and media establishments to destroy the environments of others or itself merely for profit from such actions themselves. That is not just an unsuccessful use of a system but one that is inherently flawed for humanity and the planet within which we live upon and sustains our lives.

    

 We need to talk about wealth and tax the rich

It really is a taboo to talk about taxing the wealthy or super rich, let alone electing political officials that introduce such measures. Most people with millions and billions of pounds can not only afford to hire great minds and accountants to ensure they pay the bare minimum in taxes, they can also afford to fund political interests in both the left and right side of the mainstream political establishment to stand up and enforce a no tax policy for the super wealthy to such an extent that it is never mainstream enough political idea or policy that might be adopted by governments across the global mainstream of wealthy or developed economies and countries where such policies could truly save and enhance lives.  

In the US wealth is good and talking about taxing wealth in some way makes you a communist ,which is just nonsense, but again the propaganda painted like dirty mud on a wall it sticks backed up by both mainstream republican and democrat parties.  

In the UK the super wealthy people here are often landowners and royalty, asset owners and stripers but not really in the game of working or being out of work but like many with wealth very quick to judge those out of work or in low paid jobs. It is so taboo in the UK to say or even argue that the monarchy should pay its fair share of tax or live within the countries means and have money spent on it that the country can afford or even just pay for its own affairs AND be taxed too – such views are heresy and taboo.  No knighthoods for the PM that advocates the downsizing of a royal budget. Its in the interest of the wealthy of the UK to see the defence of the monarchy and the money that is spent on maintaining it and not taxing it as sacrosanct because it also keeps in line the rest of the population with the illusion that no super wealthy people should be taxed of their wealth especially the royals and their chums.

Since Covid-19 the amount of money that has gone to the super rich and already wealthy has sky rocketed and they will do all they can to keep hold of said wealth even though they will do vary little with it accept have a few more digits on a bank account or two.

When money is given an opportunity to be earned or provided to those that are deemed working class, underclass or even middle class the vast majority of that finance will be ploughed back into the consumption economy which will be good for jobs and consumer spending and retailers. But when money just becomes digits in a bank account sitting generating interest for the super rich, it has no capacity to oil the wheels of an economy like it can seeing real finance in the hands of those that are able to directly spend said finance into a consumption economy.

The UK labour government are bending over backwards at present to please people that have no interest in being pleased by them. You have Trump taxing the globe for trade arguments and divisiveness generating dollars for a US government that is presently stopping many good products and services it delivers to its own citizens as well as those around the world as a huge experiment in how to screw things up that will likely go badly wrong. You have Labour in the UK rolling out Austerity 2.0 for those on benefits in the UK there is no plan 1.0 let alone 2.0 on how to modernise the monarchy or increase wealth generation from the rich in the UK, you can in no way provide for a society by piddling around at the edges of an already failing wealth maintaining system as is the UK. Those across the globe that increase their own wealth and fortune at the expense of the spending power of others often seem more like black holes absorbing and destroying other areas of the economy and sucking out the life of all in their way without replacing the taken away wealth with a a positive generated benefit at all.

This is not just a collection of theories but an unsustainable model of consumption and wealth generation. Just as economic drivers and wealth holders do not care for the wildlife and environment that sustains us all, that their wealth generation has destroyed, shock horror they also do not care about the people damaged and destroyed in the process of this pattern of wealth creation either. Hence tax the wealth before it destroys us all and there is then nothing left to be destroyed or taxed at all.   

If governments are not their to save lives and enhance the way we live then what are we voting for at all, we don’t vote for slightly better terms or existence. We vote to be given an opportunity to be alive and thrive not just to survive or slowly be chipped away at or suddenly stolen from us until we die.

Running To Stand Still – Elbow