Why do people falsely claim that rich people didnt take the money from the poor? The reason most rich people are rich, is because of the wages. If wages were high enough, these rich people wouldnt be rich, and the poor wouldnt be poor. Agree? by Kyle Phoenix

Because that’s an oversimplification of how money and business works. It’s an oversimplification to the factor of: “Mommy and Daddy go out the front door and come back with through the door with all the money for everything in the house. The door is magic.”

In a broader context we’re in a continuous self-replicating and perpetuating cycle. In that cycle one group of people creates say a company—-Acme, Inc., owned by the Acme family. The Acme family makes widgets that are used first locally in the town and then over 100+ years throughout the world to help everything from shoes to space shuttles operate.

Over those 100 years the price of a widget has barely changed from say $1 per widget. But whereas the Acme company used to make 1000 widgets a day in Anytown, USA, now, 100 years later they make 100,000,000,000 widgets a day to customers around the world. In order to do this effectively they’ve opened 100 offices/factories around the world—-some they built from scratch, others they bought out/took over/partnered with to make widgets.

Bob who lives in the Bronx, NY is poor. Acme Inc. has nothing to do with his poverty directly. Two states of being can exist without having effect upon the other but still be related by Acme is staffed by thousands of human beings and Bob is a human being.

• Acme can have some affect upon Bob based upon proximity and integration. Acme doesn’t have a plant in the Bronx. If they did and Bob were so inclined and eligible, he could apply for a job there, starting at $30k ($15 an hour) and work there for 50 years from his 18th birthday—-not a superstar but rising in pay/responsibility until he was earning $150k a year ($75 an hour)
• Indirectly, if Bob weren’t an employee, and Acme built a plant there, they would bring in a minimum of 1000 employees, paid an average of $30k a year, who would need breakfast, lunch, dinner—-so Bob could start a food cart across the street from the plant and earn approximately the same salary as if he were employee but instead do his dream job of cooking.
• Indirectly, if Bob weren’t an employee, and Acme built a plant there, they would bring in a minimum of 1000 employees, paid an average of $30k a year who would need to live nearby the factory for travelling ease and Bob’s parents home could be turned into a boarding house or even apartments and Bob could manage/own it. Again, Acme has created an opportunity that could potentially shift Bob out of poverty.

However Acme, nor the Acme family, are directly responsible for the Bobs who aren’t employees. Bob will have to actively engage Acme to profit from the fact that Acme isn’t simply a company/a name—-Acme is a conglomeration of first 1, then 10, then 100 now 100,000 people who all work on the manufacturing and distribution of the Acme widget. Those people concentrate their abilities into the business to get back out, from the shared effort, a paycheck.

The Acme family, having say put up their farm as collateral to start the business 100 years ago, no longer go to the office to work after the age of say 50, but they still draw salaries into a trust. So multiple generations of the Acme family use the fact that they own the Acme company and hundreds of billions of widgets are sold, as their “pay”—-ownership means they get the biggest share of the company and profits, however they decide, before any of the employees. The problem with Bobs is that they aren’t members of the Acme family so they get salaries, not ownership level salaries/controlling interests.

To a relative corporation Bob is on the “wrong” side of the paradigm for making/having as much money as Mr. and Mrs. Acme, pointedly, as an employee. In order to “take” or tax the rich multiple things would happen.

1. One, the rich have already put their assets into tax havens—-so if there were the threat of greater taxes—-they would ramp up those efforts.
2. Most rich people aren’t mega rich billionaires—-there are maybe a few thousand billionaires. Could a few thousand people with unlimited assets escape high taxation? Easily.
3. Now there are tens of millions of millionaires—-could all of them escape higher taxation? Probably not.

Most $1 to $999 million millionaires are not just sitting on piles of cash—-that is a poor context of thinking of money. What they’re sitting on are dozens of companies (tens of millions of employees) that they own, stocks (invested into other companies that acts as capital to keep them running—-employing millions of more people), partnerships in businesses (again employing millions of employees and helping to facilitate other business owners/entrepreneurs——ala Shark Tank), real estate (housing millions of people)—-lots of assets that are not “cash” money.

Generally, you also cannot retroactively double tax assets. So whatever tax rate/cost has occurred to build most wealth cannot be retroactively double taxed. (Remember the Boston Tea Party revolt, that’s what was one of the threats/spurs to action.) Which means that there would have to be a start date—-January 1st, 2025—- when Acme, Inc. would be subject to 50% taxation. Giving Acme Inc. 2–3 years to shutdown all Acme Inc.'s in America. (You do know that Apple, Inc. isn’t located here in America?—-hundreds of billions of dollars that consumers poured into iPhones are in banks in Europe, Ireland, Scotland, The Middle East, Asia—-where taxation is non-existent or more favorable.)

Also say you bought a house for $50,000 and have stayed in it for 50 years. It is now worth $1 million——should the government be able to swoop in to take half of that valuation to distribute, insanely to poor Bobs?

Not every millionaire is a billionaire—-so where do we draw the line between “rich we agree to” and “rich we don’t agree to”?

The Acme Family, How They Got “Rich”. They Worked for It.

What most poor people assume is that rich people——an oversimplification of relative financial positions—-are playing by the same rules.

Here’s how you become rich—-stop playing by poor people’s money rules.

The Acme family did several things alongside starting Acme, Inc..

One, they may’ve started out owning a farm. For simplicities' sake let’s say there were 4 brothers. Those 4 brothers put aside all of their personal shit and each brother took on a role—-working as farm hands' on other farms, living in a one room house with their parents, waiting until they were all over 35 to marry. They ate stew a lot, curbed their vices and everyone——4 brothers, two parents kicked in to the Acme Family Money Jar. for 10 years.

Then they opened the jar and bought a small farm. Instead of doing what their neighbors did and selling their corn or wheat or vegetables, Ma Acme and Pa Acme ran the farm raising vegetables and livestock—-pigs, chickens and cows, to first feed the family. They expanded the house to 4 rooms and the brothers kept working at another farm, 5 days a week and then 2 days a week at the family farm. They kept filling the Acme Family Money Jar—-20 years—-expanding their farm and more importantly instead of selling vegetables—-they raised and sold livestock—-for higher prices, because of less countywide competition.

It took 20 years, but by the time the brothers were in their late 30s and 40s—-they had bought a thousand acres of fertile land and thousands of livestock and could retire their parents by taking over farming duties—-and expanding the house to 5 smaller houses/plots spread out on the farm, for each of them to have for their own families.

Then they went to the bank and had an appraiser come out and appraise their whole home/business/farm set up. Let’s call it a value of $1 million dollars. They took out a loan for $1 million dollars against the farm, and spent it on the land closest to town, they built an office and small factory—-where they made widgets—-having learned in 20 years of work, what farms and businesses needed.

But they stopped playing by Poor People’s Rules, intentionally.

1. They pooled their effort towards a common goal.
2. They lowered their expenses and intentionally made sacrifices for at least 10 to 20 years.
3. They didn’t have children and educated themselves towards a bigger goal.
4. They didn’t stop their income, just lowered it slightly when they bought the farm, but they still lived below the means of 6 adults.
5. They used their resources to invest not just cash but their Human Capital into a system—-the farm/livestock that would remove their biggest expense first—-themselves—-then they looked at re-investing that money into a simple, replicable system—-farming/livestock breeding—-while still working to bring in 4 incomes, plus the farms’—-essentially quadrupling their resources without increasing their normal, routinized workload or expenses.
6. They then strategized how to use their asset—-the farm—-to one, increase in value—-the business and building individual homes on it, and then have it appraised and get a bank loan (shifting from Poor to Working/Middle Class to Rich-Wealthy) rules and systems—-borrow/get money based upon an asset and then, most importantly——
7. They created Acme, Inc. on land they owned, charging themselves rent from the company-building so part of the $1 million dollar loan from the bank—-$50k every year, they paid back to the Acme Family Money Jar as a business that was renting space/building on their owned land, near town to go into a needed business—making and selling widgets.
8. They maintained the farm and began working Acme, Inc, quitting their farmhand jobs and THEN starting families—-marriage and children—-after they had a stable asset in the farm and new Acme company. (Their plan for their children was that every single one of them go to college, in different parts of the country and specialize in engineering, computer science, architecture, real estate, business and law—-so that the family itself becomes a skill and braintrust with a network all over the country to eventually set up more Acme Inc. plants).They practiced The 4 Ms of the Rich that the Poor don’t practice—-

• Make Money Make Money.
• Collective economics.
• Stave off having children until they can be afforded.
• Educate on the dime of others (the other farms they worked for 20 years).
• Then educate your children in useful skills to increase not just their Human Capital but the overall family Human Capital value.

Most Poor people are not taught this system, a strategic system as a group or individuals, so they don’t practice compound interest creation, collective economics, personal vice control, waiting to have children, finding and hoarding education, turning money into more money.

The Brookings Institute, a think tank here in America, has narrowed down 3 cross contaminating modalities that ensure poverty:

1. Lack of wedlock. Shacking up, not getting legally married. (This is why even LGBTSGL marriages are so significant. Marriage is not simply for love, it is a contractual binding of two entities that are greater and more stable/solid than the individual.)
2. Having children without wedlock/alone. Children are another bill, responsibility on an adult and that person’s time. It is generally $10k to $25k or as much as $300k to have a child and support it to at least 18.
3. No education; dropping out of high school and now in the 21st century, no college education. Society as a whole, thanks to technology is moving intellectually faster—-we are in the Information/Knowledge Age——if you are not advancing intellectually in your skillset to expand and keep your Human Capital above Poverty levels, you will fall into Poverty. It’s yes, a form of a race, but not so much to win, as to keep up. Not educating—-reading, writing, math skills, computer skills, constantly upgrading, two to five times in your lifetime, means you’re lagging behind. Rich people understand they must keep learning and expanding their skill sets personally or through employees—-lawyers, accountants, doctors, teachers, coaches, therapists, etc.. Richer people improve themselves, continuously.

The overall problem with capitalism—-isn’t how capitalism works, it’s that people aren’t taught how and why capitalism works. What Bob, the employee or potential employee, never considered is that Acme, 50 years ago, became publicly traded so that it could expand. Doing so meant that they transformed the paradigm of the company so that others (millions of people) could buy shares of ownership of the company, to give Acme more money, an infusion, to expand internationally.

Instead of one big loan—-they opened up the company to being sold as smaller pieces, called stocks. The Acme Family though has always retained from grandparents to parents to grandchildren to great grandchildren, 60% of the company itself, and lives off of dividends, rarely selling their inherited shares.

The Bob in an alternate universe who worked for them for 50 years took advantage of the employee stock buying program and bought 10 shares, 520 shares a year, 5200 shares a decade—-which totaled to 26,000 shares after 50 years. The employee share buying program meant Bob bought all his shares at the price of $10 a piece. Bob spent $260k on those 26,000 shares BUT the value of the shares rose to being worth $1000 a piece, so Bob retires with $26 million dollars worth of shares.

The problem of poverty is twofold——information/education and opportunity. Education literally creates the possibility of furthering one’s self and family through opportunities one is now aware of.

Bob, the food stand guy, after 50 years doesn’t have $26 million, though he was there as much or longer as Bob the share buying employee. He might have expanded to a restaurant worth $2.6 million after 50 years. Which are both greater than Bob, who never applied, because in his universe, Acme Inc. only had a NY plant in Long Island and he didn’t want to/couldn’t travel that far.

In all of the ideas——Acme has always existed, always been staffed by 100,000 people and always made the Acme family rich but to our three Bob’s, their interaction with Acme has influenced their financial outcome.

Overly simplified yes, but the opportunity the poor miss out on is getting into the game on some level, that’s where society needs expansion—-teaching Bobs to engage as employees or even restaurant cart/storefront owners with Acme’s, to take advantage of the existence of larger systems—-to even generally buy stocks that increase in value over time (another form of compoundation/interest.). If you hand Bob, unemployed $30k a year, he won’t grow, as human, as much as Bob the employee/owner or Bob, the entrepreneur.

Bob is not worth $15 an hour to any of the Acme, Inc.’s of the world. And the capitalistic system is one built through meritocracy——existence is not reason enough for a living (beginning Middle Class salary) salary——unless you’re so disabled as to need special help.

Because two factors must occur for money to exist into a concrete form: someone must make and sell widgets—-a company/employee; and someone must buy widgets—-a company/consumer.

Without those two factors, constantly cycling value-widget-money—-back and forth there is no generated money to pay anyone a salary. Which means this capitalistic system, supported by billions of people is so far the best one for the most people. There are other systems but they don’t work as well for so many people. The only foreseeable change to expand capitalism is materials from space—-asteroids—-iron, gold, etc. being brought back to Earth or expanding elsewhere, to create more economies to sell widgets to. We need more raw materials to make widgets and those widgets to be useful to human beings for their to be more circulation of money to employ more Bob’s.

Shifting Bob (s) Will Eradicate Poverty

Undoing poverty means that Bob needs to be educated so that he can see/decide on opportunities (that yes, have to be reasonably available—-we can’t have discrimination/segregation of opportunities against folks named Bob) so that he too can profit as the Acme family have (now worth billions) and the employees of Acme (thousands of employees worth millions) from the sale worldwide of widgets.

As an interesting real world application, the nation of Haiti has refused corporations that want to set up plants and offices there that won’t educate the Haitian populace and employ them. You must build not just a factory but a school next to the factory to teach not just the employees but the populace as well. A company’s investment isn’t simply in a percentage of people who are educated and therefore can take advantage of the opportunity of Acme Inc. in Haiti but also the lowest rung Bob who needs elementary, middle and high school education to be able to take advantage of the entry level positions and pay of Acme.

The interesting part is that when more and more Bob’s engage the world, therefore the Acme’s of the world in the profitable, educated ways of capitalism, Acme’s will shift. Acme’s of the world take advantage of not Bob’s but the proliferation of ignorance from billions of Bob’s across the world—-who still buy widgets for their cars, homes, clothing, etc..

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