Monday, November 3, 2014
Interesting trivia on the Forbes list of the world's richest people
Heh. Interesting. In 1995, the third richest person in the USA according to Forbes was John Kluge.
His net worth was estimated in 1995 to be $6.7 billion dollars. $4B of that he made by selling a raft of TV stations to Fox in 1986.
Today, there are 68 Americans richer than he was, not two. In fact, 23 Americans are worth over $20 billion each today.
The seven wealthiest people in the US today, combined, control over 50 times as much wealth as Kluge had: about $359 billion in total.
Gates, Buffett and Ellison today are each worth more money than were the five richest Americans combined in 1995.
And you wonder why interest rates are so low?
Like I've been saying: the rich won the money game. They bust the unions, they cut workers' wages for 30 years, they moved manufacturing to the third world, they reduced their tax load, they took control of government; they now have accumulated all the money. They have won the game.
So now they're finding out that there's nobody to lend it to.
And that is why you have 0% real interest rates.
Read Piketty on capital, and then read Krugman on secular stagnation. The end.
at 4:46 PM