Sunday, 22 December 2024

Capitalist Burden in the UK

Using ChatGPT some basic figures for the burden of Capitalism.

Capitalism is the system where the rich can buy things which they rent out to the poor this enabling the poor to give them money.

The main examples are:
Housing rent:    here the rich buy a property, driving up the price so the poor cannot afford it, and then rent it back to the poor.

Mortgage Rent: here the poor borrow money from a bank and then pay rents back to the rich.

Dividends:        here the rich buy shares in a company and then effectively rent it back to the company in dividends.  

So some approximate values:

Mortgages        £220.95 billion annually.

Rents                £73.548 billion annually.

Dividends         £135 billion annually.

SO the poor give the rich around £500 billion / year.

Apart from the rich renting their surplus to the poor to create income, the other source of income is actual labour.

Total salary        £917.04 billion

Very crudely then we can see that of the £1000 billion paid in salary to the poor, half of that comes back to the rich through rents.

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ChatGPT makes research so easy. In 10 mins have established this rule. Of the £1000billion paid in salaries per year in the UK, £500billion comes back to the rich through rents (dividends, mortgages, property rents). So provisionally Capitalism ensures that 1/2 of what the rich give us (in salaries) goes back to the rich (this excludes all the shenanigans of corrupt governments paying off their friends through PPPs and Business Stimulus). Interestingly under the UK Feudal system that occurred when the British became slaves to the Normans the ruling elite would take 50% of all produce on the land. Looks like literally nothing has changed and the salaried people of the UK are still slaves. This excludes the unsalaried people.

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This is not quite true. Dividends come out of company finances before salary. So actually only 1/3 of salary goes back to the rich. But we could argue that if dividends were not paid to the rich then more would be available to the poor and there would be wage inflation. I have also missed the cost of interest payments on debt privately and publicly.

Here the rich are anyone who has "surplus" cash to invest, while the poor spend all income. 

 

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