Does Capitalism Lead to Wealth Inequality?
Most Socialist and Communist believe that Capitalism leads to inequality and if you subscribe to their rhetoric it’s clear to see that both socialist, communists and even fascists believe that the world should all think and act in the exact same way or have some kind of one world government. Capitalism coincides with freedom and education however the downside to capitalism is if people lack the education on how it works people will be subjected to outside influence which in turn will make them seek forces such socialism and communism to save them from the evils of capitalism.
My belief has always been that if you live in a capitalist nation it’s important and imperative to teach children growing up in public schools what Capitalism is how it works, how it can be used to help you and how it can be used against you. Example of what I mean by this is “credit” what most people do the instant they get a good paying job is they get a mortgage and they finance a car! They do these things because the watch television or read billboard advertisements promoting the “American dream” now at these stage these or this individual doesn’t only have to pay taxes to the government for working as an UNSECURED employee but this individual is also obligated to pay the BANK for the mortgage and also this individual is forced to pay the finance company for financing their car.
Furthermore there are other expenses that the owner must pay for, for both his financed car and mortgaged house. These are obligations that this individual gets him and/or her self into that take from their WEALTH. Now if it’s not a house or a car there are other things such as hobbies that a person might have that will also take from his or her wealth. In a credit filled society it allows people to get what they want now instead of later which takes from peoples wealth.
The only time getting something now instead of later might benefit an individual is if that individual has him or herself a BUSINESS!!! If you know even a little bit of basics in Bookkeeping you understand what an asset is, what a liability is and what expenses are. In order to have a successful business you must be in PROFIT. As an employee most people have NO idea what being in profit means. Most employees believe that being in profit means getting a paycheck every month. Being in profit in business means that your Revenues must exceed your Expenses and the best way to do this is to have good to GREAT assets.
Now the average person that graduates school has no idea what the above even means. Most people believe that as long as they keep making money from working they’ll be fine financially but that’s not how this world works. In order to build wealth you have build assets that will pay you whether you work or not. This is why governments set up retirement plans governments do this because they believe that people will buy LIABILITIES instead of assets.
The reason this happens in my opinion is because as capitalists we leave out FINANCIAL EDUCATION out of school. As a capitalist or a socialist nation you MUST explain to your citizens the world they live in. As the world approaches more and more globalization the gap between the rich and poor is extending not because of “MONEY” but because of what some parents are teaching their kids about money and what other parents are not teaching their kids about money.
Because governments negate this topic in school most people will grow up not understanding the REAL WORLD! Even if a basic education about money was REQUIRED in every grade of the public education system. Children, parents, teens adults etc would have a broader understanding of the financial workings in the world. Teens would understand that taking certain courses in university won’t guarantee a good paying job so kids and parents wouldn’t waste HUNDREDS OF THOUSANDS of dollars on university class that will get them nowhere. Furthermore University and college education prices would have to COME DOWN as demand for STUDENT LOANS would decrease.
This is what true capitalism does it brings prices down or to competitive levels and what happens is you start getting more innovation as independent teachers or individuals will start to spring up because they might be able to undercut particular costs being offered from a big slow corporation that has a lot of obligations. The main issue with our current world is our EDUCATION models. If you’re a capitalist country capitalism should be taught in schools at the very least the basics should be a MANDATORY subject in the public school system. This would awake and prepare mentally children, teens and even parents to the REAL world they live in before they step foot in it.
Capitalism, socialism, communism will ALL lead to wealth inequality if the education and the history of how these systems of government work are negated from the public school system.
Furthermore any private school that negates this subject should also be removed from any and all public funding. Money can’t fix problems EDUCATED PEOPLE fix problems! Despite what some people think education is key to great civilization it’s not money educated people rule the world and being that money is such an important piece of our society it’s my belief that it become a MANDATORY subject in our education system.
Educated people wouldn’t put themselves in a position to take out Payday or Paycheck loan. People get into these things because they do not understand or believe in how wealth is created.
Capitalism is not the problem stupidity in government and politics is the problem any politician making false promises that by taxing the rich all the poor peoples problems will be solved is a bold face lie. Education about money is and will always be the cure to economic uncertainty. While First world nations still have wealth they should be educating their children about wealth creation because if they don’t everything they’ve built up to this point may have been built in vain as most of it’s children will have a hard time understanding how to create wealth which will inevitably open them up to influence which will ultimately lead to the destruction of capitalism as we know it.