Wealth cascading down the generations?
We all wish that we had been born with a silver spoon in our mouths. But the reality for most people is that rather than enjoying inherited wealth, they have to create their own wealth. Many people will never own their own home and for those that are lucky enough to own a home, they spend their life paying off the mortgage. To make it all worse the money we earn is constantly devalued by an expanding money supply.
The devaluation of money does make that mortgage easier to pay though. It doesn’t constantly go up with inflation like the rent on a house. As the government tries to inflate away it’s debts, it inflates away everyone else’s too. This constant eroding of the value of our money does make it hard to save up money for a deposit on a house. Those lucky enough to have inherited can often buy a home or they have the deposit. Then that home can be left to the next generation.
Most people today won’t be leaving much to the next generation though. They pile up debts, that are secured against their home. The ubiquitous credit card leaves many people in debt in their old age. They struggle to pay of all their debts even when they decide to ‘downsize’. Then there is the cost of care in old age that can mean selling your home to pay for care.
Money isn’t the only thing that gets passed from one generation to another. We also pass knowledge down from one generation to another. It does tend to be a privilege that isn’t enjoyed by everyone though. Those that inherit money and property often inherit the education to go with it. Children that are born on a council estate have little change of inheriting anything or going to university where they will have the benefit of learning from previous generations.
There is a huge amount of property in the UK, both private property and commercial property. Who owns it all? Who do all those people who owe money on their credit cards and mortgages owe money to? With many governments now in debt and printing money, we can also ask who they all owe money to.
There is a powerful elite in the world that does buy up government debt, that does own the farms, the vineyards, the mortgages, the mansions and all the consumer debt. These super-rich often live in tax havens or even on private islands. In the old days they would have had mansions and servants; they even had slaves at one time. Now the whole world are their slaves. How do they manage to pass all the wealth down from one generation to the next and avoid inheritance taxes? They can put the wealth into other legal entities, companies, foundations and charities that they control. They have learnt to hide the wealth from the tax man, but they still maintain their power.
Did you inherit from previous generations? Did you benefit from the wealth created by previous generations? Did you benefit from the knowledge of previous generations? Was it passed on to you?
How lucky were you? Please comment and share your thoughts.
- Money and Ecology (positivemoney.org)