Statement: If you want to help the rich get richer (and the poor get poorer), give them the same amount of money.
That might seem a little outlandish.
Might? Ummmmm........
What prompted me to think of this?
I saw an "article" about Iran really struggling with its economy right now. So they decided to take drastic measures.
The Iranian government is no longer subsidizing the cost of food. How does it affect the people there? The example I saw is that the price of bread doubled. I do not know how the price of other food is affected by this.
What is it doing to help people instead of subsidizing food?
It is giving everyone around $8 to help offset this increased cost.
What does this have to do with my first statement that the rich will get richer when you give everyone the same amount of money?
EVERYTHING!
Let's take a closer look....
Example A: The Rich Person
The rich person will find a way to get the bread for just a little bit cheaper.
Since they are getting more money now, they have MORE they can save. They will find a place to invest that, and it will make them some more money.
Example B: The Poor Person
The poor person will buy the same bread they always have and pay twice as much for it.
If there is any money remaining, it will be gone by the end of the month. They will not have any idea where it went. They will just know that they don't have any money--again.
As a person who has lived both ways, I can tell you that you either get this...or you don't have any clue. You just feel like you're a victim, and you're right.
Unfortunately, you're a victim of your own ignorance, because you don't have any idea how to reverse it. You look for excuses everywhere but at yourself--the one person you CAN control.
Money management is one of the biggest differences between the rich and the poor. Any time there is a change in monetary policy, the rich will find a way to get richer from it. The poor will revert to their old ways, no matter how much money you give them or take from them.
If you don't a rich person to become richer, don't let him (or her) have any control over his (or her) money. Otherwise, the rich will always get richer, because they're in more control over their money habits.
My prediction is that by this time next year, hardly anyone with Iran will be living any differently than they do today, even with bread being twice as expensive but money being given to them by the government.
The rich will continue getting richer.
NOTE: I do not know if $8 the government is giving everyone is for the total for everything or just the bread. That is not clear. Sometimes authors like to conveniently omit key facts to make certain people look better or worse than they really are. This might be one of those times. So we can only speculate here.
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