by Chris Black
Rockefeller didn’t actually become the mega billionaire baron exerting power and influence until the government broke up Standard Oil, and he was given 20-30% ownership in a few dozen companies.
The shares of each company grew his fortune exponentially, making him a far richer man than if Standard Oil stood alone.
Most billionaires didn’t create their wealth through selling products.
If they took a $40 billion fortune out of the company’s revenue, they would have bankrupted the business in the first year.
Shares of fraudulent corporations are not real wealth.
Real wealth is created through commerce, as to why China is so far ahead.
With hundreds of thousands of factories, real wealth is created.
What is truly amazing is that immense wealth is made when the factories make a miniscule amount of money on the products they sell.
A store like Walmart can make $80 in gross revenue on a $100 retail product, while the factory pulled in $2.
You would think America’s roads would be paved with gold and the average American would be earning sky high wages, when the company they work for is pulling in the gross margin dollars they do.
However, wages compared to the cost of living are near the bottom of the developed world.
Making less than $100k in America right now nearly leaves you with the choice of which trailer park to live in.
The mega margin dollars are needed to facilitate the Wall Street transfer of wealth.
It costs Apple around $50 to manufacture a $1200 iPhone, but that $2.5 trillion valuation doesn’t exist if the phone sells for $100.
You want to level the playing field?
Get rid of Wall Street.
If the path to wealth exists only through running a successful business, that is what you’ll get.
If you can be given $50 billion for emailing a white paper and putting photos of neck bearded millennials on a website, then that is the path everyone will take.
Why work hard when fraud pays so well?