Exploring the 1/x distribution of wealth, we explore the reasons why it seems that the more wealthy a person is, the easier it is for him to accumulate wealth. As one looks at the curve, we see that the slope of wealth gets steeper as one accumulates wealth. Why is that?
This is not a natural phenomenon so we speculate that government aids and abets the billionaires. When we look at the social security tax, we find that it has a reverse gradation. The billionaires pay zero percent of their income to social security, if rounded off to the nearest decimal point. Yet you and I pay approximately 15% of our income, if the employers contribution is included, as it must be in a global economy that puts us in competition with the rest of the world.
And what about capital gains taxes, do they benefit the wealthy? If a person holds stock for several years, he only has to pay gains the year he sells the stock. A wage earner, however, has to pay gains every year. The result is that the capital gain not taxed earns interest. The wage earner never earns income on the money that immediately goes to government. Those are two more reasons why it is easier for the wealthy to accumulate wealth. Government helps the rich get rich.
There are other reasons as well. Why is it so easy for the wealthy to accumulate wealth?