The wealth of the world has been decreasing since 1970, yeah they still quote the numbers, but the numbers are stupid when there are no comparable value considerations added. According to Miguel Ángel Muñoz Luna. Professor of the IE Business School in the January 10, 2012 IE Focus article- “It is interesting to note that, despite the three important crises that have affected the markets in the last decade, global wealth has increased notably. [Hah that’s based on the inaccurate manipulation of numbers.] Today´s challenge consists of making sure that the debt crisis affecting us at the moment does not hinder the positive evolution of wealth and that it contributes to a more equal distribution of it.”
Number Manipulation can stimulate inaccurate diagnoses
For example, when I started driving in 1990 in the United States one gallon of gas cost me between $0.83 and $0.97 NOW in 2015 the exact same gallon of fuel costs between $2.39 and $3.89 a gallon. The lower prices recently are resulting from the amounts of job loss and drivers not driving daily so that the supply increases and the prices drop to keep the flows regulated.
These price variations are over a 287% to 400% increase in price, thus the dollar had decreased in value by 400% which means you had to pay over 4 times as much to get the exact same thing that dollar provided in a previous age. While the income variations for the exact same time $4.25 minimum wage in 1990 and the 2016 minimum wage rate of $7.25 have only increased by a 170% amount. Thus every American who is still working is living with half the wage value that they used to have and the numbers of wealth values are totally inaccurate.
Research on wealth shows that variations in value have dramatically altered the world wealth situations. According to the Pew Research Center in 2013,
Affluent households typically have their assets concentrated in stocks and other financial holdings, while less affluent households typically have their wealth more heavily concentrated in the value of their home.
From the end of the recession in 2009 through 2011 (the last year for which Census Bureau wealth data are available), the 8 million households in the U.S. with a net worth above $836,033 saw their aggregate wealth rise by an estimated $5.6 trillion, while the 111 million households with a net worth at or below that level saw their aggregate wealth decline by an estimated $0.6 trillion.1
This has happened because of the so called value of paper versus the value of objects and materials. While our money buys us less the objects purchased are also worth less money to others.
“Shares of stock represent equity interest in a corporation; while bonds are debt securities that corporations and governments use to borrow money.” W D Adkins There are of course different types of stock with different payout values and control interests, but there is no guarantee that the stock of AT&T yesterday will be of any value today even if more was paid for the stock than was ever received from the stock. We also know that the stock manipulation is a daily aspect that keeps Wall Street and other financial markets running, trading on air, not on reality.
The reality of price manipulation
As we look at the variation value of the dollar and the Euro we can see how the real value of money has depreciated while the so called “wealth of the world” seems to have increased. Maybe the fuel example above isn’t that wise, taking time to look at the other comparisons of true value can assist us in understanding the true wealth depreciation of the world.
As was said before the income variations for 1990 of a $4.25 minimum wage and the 2016 minimum wage rate of $7.25 have increased by a 70% amount. 1990’s Food and Groceries prices versus our present prices present a good comparison. Price Comparisons of Necessities demonstrate the manipulations:
…Campbells Tomatoe Soup $1.00 for 3 cans Illinois 1991 […$1.00 for 1 can at Walmart in 2016] a 200% increase in consumer cost.
…Chicken $1.05 Per pOund Wisconsin 1998 […$1.22 per pound at Walmart in 2016] This has only been about a 16% increase in price.
…Eggs Large grade A $1.05 per dozen Wisconsin 1998 […$3.27 per dozen at Walmart in 2016] this is a 211% increase in price paid by the consumer.
…Milk 1 gallon 99 cents Illinois 1991 [… $1.91 for 1 gallon at Walmart in 2016] this is about a 100% increase in price.
…Pork and beans 33 cents Illinois 1991 […66 cents at Walmart in 2016] a 100% increase in consumer cost.
…Sliced Bacon 1.49 per pound Illinois 1991 [… $4.24 per pound at Walmart in 2016] a 184% increase in cost.
Sliced Ham $1.99 per pound Illinois 1991 […$5.48 per pound at Walmart in 2016] another price increase this one of 175%.
So while the base income for those that can gain from the shift in wage minimums increases we are still making less than 2/3rds of the cost of the products we are trying to buy. And when you consider that in general the wage increase for a person that works hard in an established business may be only 1 to 3% per year, the accumulative amount for 27 years based on a beginning wage of $7.25 is $12.21. This wage increase is only 68% higher than the initial wage.
Our wealth has definitely decreased as well as our ability to build, create, and manufacture. We have killed our economy and we allow real wealth to disappear because of our ignorance of what true wealth is and what is necessity versus a want.