Five Stages of Wealth Inequality

Stage one.)  Asset prices begin their journey of increasing substantially in price due to massive tax reduction for the wealthy and rich.  This pushes up in price stocks, bonds, and real estate that are purchased from the weakest hands, those in the working class who see this as a windfall especially from those who moved into retirement.

Stage two.)  The working class is no longer able to save or borrow for the purchase of assets.  This is especially true for residential real estate that is seen by the growing homelessness of the poor.  This has also eviscerated the working class ability to consume even for the basics stables so necessary for life.

The government steps in to fill the gap with multiple programs that require the government to borrow even more money from the rich and ultra levels of rich.  Many lower level governments’ State and locals have asset sales purchased by the rich to fund programs (until the money runs out).  Simply put, governments are now at the beginning stage of dis-saving just like the poor and working class.

Stage three.)  The government continues its downward spiral of asset sales and borrowing monies to support the economy that has now included programs normally for the poor but are now being demanded by the lower middle class desperately holding on to a middle class lifestyle.

There remains no effort by the government to tax the wealth of the rich.  As the rich are in control of government.

Stage four.)  As the government is squeezed out for revenues  social welfare programs are cut back or closed but other areas such as police, fire, hospitals, schools are all reduced due to funding.  England is now in full blown stage four where as the U.S. is in just the beginning throws of this stage.

Since the rich currently hold the power over governments thus taxes are reduced for those holding assets government will continue to increase taxes on the middle class incomes.

Stage five.)  Simply more asset acquiring by the rich that removes all but the upper tier middle class, who are there to support the rich class with products and services leaving the once working class in wretched poverty with the once middle class as the new surviving working class.

If this is allowed to be completed welcome to FUEDALISM!