Who has it? How much?
Top 10 percent: $84 trillion
Next 40 percent: $8 trillion
Bottom 50 percent: $0
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(Data: Flow of Funds Report, Federal Reserve, as of Dec. 31, 2016)
Thanks to our tax code and our inheritance laws, America’s wealth (assets minus debts) distribution is relatively fixed with the top 10 percent holding 90 percent of it, the middle class holding 10 percent, and the bottom 50 percent holding zero.
I cannot change that distribution, you cannot change it, and nobody else can—except for Congress and the President.
Since 1950 our wealth has doubled in value every 10 years for a compound annual growth rate (CAGR) of 7.2 percent. If that growth rate continues (and there is nothing in place that could prevent it), here is what that distribution will look like in 2067 (50 years from now):
Table 2. America’s Wealth: 2067
Who has it? How much?
Top 10 percent: $2,701 trillion
Next 40 percent: $267 trillion
Bottom 50 percent: $0
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Notice that the top 10 percent's dollar value will increase 32 times over the next 50 years, while the bottom 50 percent''s dollar value will remain constant at zero. And that is because zero raised to any power is still zero. We may therefore conclude on good logical and mathematical grounds that the gap between the bottom 50 percent and the top 10 percent will increase by 31 times its present size. Further, the rich will have become richer, and the poor will have become poorer, and neither group will have done anything to have made it all happen. All that need happen is that the economy continues to grow at about the same pace, while the tax code and inheritiance laws remain relatively the same. The rich, however, will be overflowing with weatlh, while the poor will be destitute almost beyond comprehension.
Moreover, neither the poor nor the rich would be responsible at all for their circumstances. Both sets of conditions would be the direct result of our tax and inheritance laws. Are there any logicians, politicians, or magicians out there who would dare challlenge my conclusitions? If so, please state them in the comment box below.
Given the above facts and projection, Donald Trump and his advisors nevertheless want to accelerate the amounts of wealth flowing to the top 10 percent, while the bottom 90 percent pay more and more of the costs of government including health care, Medicare, Medicaid, Social Security, rebuilding the infrastructure, defense, and homeland security. That is the sum and substance of the conservative agenda, All the rest is rhetorical flim flam.
Addendum
How much is $2,701 trillion? If laid end-to-end in one dollar bills that length would be just over 28 billion miles long, or 158 round trips to the sun and back.
Would that satisfy the greed quotient of Donald Trump, his cohorts, and their heirs? You tell me.
We can no longer allow the rich to buy politicians to do their bidding…
Ron