Chapter 4
Flaw in Economic theory!
(2) Nation’s Wealth Share
80:20 Economic Formula!
Common man was rich, when the Kings ruled the societies. Bulk of the nation’s wealth remained with the common man who produced it
In the times of Kings, those who produced held 75% to 80% of the wealth with them who gave away 20 to 25% as tax to government.
Every society has natural resources. People work and create wealth that is being consumed by everyone
The wealth, both natural and created in the society, is a property belonging to every citizen of the society.
Today, the common man, is left with no significant portion of the wealth as the wealth moved up:
The wealth from the common man to Rulers with the evolution of the Financial system.
After the country came under the invaders rule and remained a colony of various countries, the common man did not get his due share of the nation’s health.
After the Indian society achieved independence, the government, continued to operate on the systems and processes used by invaders, left behind.
Wealth moved to Corporate
Wealth of the nation clandestinely moved into the hands of a few people in the society.
The new dispensation, the democratically elected governments one after the other, allowed a small section of the society – known as Cronies – to have greater access to the financial system. With the Financial System strongly behind them.
These cronies did not produce any Real wealth to the nation. Instead they produced Pseudo wealth that weakened the society’s economy. Pseudo wealth weakened the buying power of common man who produced real goods.
The common man, instead of a wealth share, received paltry wages for his effort. Paid direct and indirect taxes on what he consumed.
The Pseudo money that crooks in the society produced, ate up substantial portion of the common man’s savings for future, in the form of inflation.
The corruption that the political system perpetuated affect the common man of further drain on his paltry income.
Thus the changi