The total amount of money in the world is finite. As of today, an approximate figure for this is $60 trillion.
But, if money is finite, why we are rewarded to accumulate it? And, by reward, I mean interest rates.
Isn't it a facilitation of inequality? Why it is not the other way round?
I think I can guess the answer. Here are my thoughts.
1. We work in corporations so that we can buy stuff. We also invest in stocks of various corporations with the same objective.
2. We buy products (this includes services as well) because we feel incomplete without them. However, I am excluding our bare necessities from this discussion for the time being.
3. Corporations make us feel incomplete without their products so that we have a strong urge to buy them. This is called marketing. I heard that it is an art.
4. Corporations make profit when we buy their products. A lot of profit, actually.
5. Corporations pay us a tiny proportion of their profit as salary.
6. We work in corporations and get paid the salary in return. We get returns in our investments in those corporation stocks.
This is a vicious cycle. And, in this whole process, the corporations accumulate a lot of money so that they can expand their business even more, so that they can be even more profitable.
And then there is another body. The Universities. They work very hard to prepare us so that we can serve those corporations. And, of course they charge money for that. So we take loans from those corporations itself to get some degrees and pay them back with interest, by working in those corporations and investing in their growth.
We, the people, are really trapped this time!
Abhimanyu Gupta lives in Chesterfield, Missouri with his wife Nilanjana & son Anusurya. His profession is software testing and his passion are music and books. He can be reached via Email, LinkedIn or Facebook.