This note is a part of my Zettelkasten. What is below might not be complete or accurate. It is also likely to change often.
16th July, 2020

Capitalism causes huge inequality

Capitalism has caused huge unequality. Because Capitalism doesnt have free markets, there are inevitable cartels or monopolies in almost every segment. This effects citizens in two ways:

  • They pay higher prices for goods and services because with the lack of true competition, the prices will always be above the ideal price.
  • Because the Labour Markets are not good markets either, they get paid less than they should.

All this excess money is being stolen from the market by Market Power. These excess profits have increased fourfold in the US since the early 1980s.

Most of the profits from these monopolies go to the Superrich, the 1% of the world who control the capital and bottom 99% lose out. This is the cause of inequality in the world around us.