Someone should introduce an economical concept equivalent to escape velocity in physics.
If you throw an object towards space from Earth, it will always fall back to Earth, unless you throw it with enough speed (IIRC something close to 11km/s), with which it will eventually "escape" Earth's gravity.
I have a feeling that money follow the same rule: If you have some money but below a certain level, and don't do anything, that amount of money will be eaten by you, taxes, and inflation. But if you have enough money, current rates mean that taxes & inflation will erode your capital slower than the interest you'll earn from that capital alone, and so money is inevitably growing on itself.
As a society, we should prevent "escape capital" to be a thing.
I totally fail to understand why this is a polarizing issue as 99.5% of people are on the same side of the threshold...
If you throw an object towards space from Earth, it will always fall back to Earth, unless you throw it with enough speed (IIRC something close to 11km/s), with which it will eventually "escape" Earth's gravity.
I have a feeling that money follow the same rule: If you have some money but below a certain level, and don't do anything, that amount of money will be eaten by you, taxes, and inflation. But if you have enough money, current rates mean that taxes & inflation will erode your capital slower than the interest you'll earn from that capital alone, and so money is inevitably growing on itself.
As a society, we should prevent "escape capital" to be a thing.
I totally fail to understand why this is a polarizing issue as 99.5% of people are on the same side of the threshold...