You actually cannot eliminate the classes because to change the income discrepancy would only reconfigure them accordingly.
If you gave every poor person an annual income of $20,000, then $20,000 becomes the new 'poverty' level. This wouldn't change the dynamics of the market system (rich people would still pay more for iconic items). In fact, the market would adjust dramatically, so much so that many of the gains would almost immediately be lost. 200 years ago, making $20,000 a year would have ensured a luxuriously comfortable existence, but as poor people raised their incomes, they directly or indirectly raised the income of the rich, thereby ensuring that they would remain poor.
Also, the problems of class inequality have alot to do with how money transfers. Because rich people have their finances invested, those investments gather money from other places, and in turn, return the millionaries investment along with either interest or profit. What is wrong with poverty is that the money flows very much upward. Poor people buy things that have little or no return investment on them. Consequently, the $5000 they get returns about $50-$100 to them (I am only guessing this rate). Because a millionaire takes his money and puts it into other things (even companies that sell to poor people) that work primarily to return an investment, his 1.2 million comes back to him as 1.8 or 2.3 million. Where is he getting that money from: from the people who are buying things with no return on them.
Imagine the last time you bought a $2 Big Mac. Now, if you wanted, you could have bought all your supplies in bulk, and enjoyed a comparative (or even better) hamburger worth about $.65 (again, only an estimate). Where did your extra $1.35 go? Mainly to the people who have stock in McDonalds. The more business McDonalds does, the better its stock prices do. If you don't have stock, but you are buying McDonalds, you are essentially putting your extra money in someone else's pocket. At the end of the day, you are $2 less than what you started, AND that money is not working its way back to you.
This is a very simplistic lesson, and you can argue against it any number of ways. Obviously we can't all invest in everything, so we will ultimately invest in many things that do not offer a monetary return. And, in addition, some things have no immediate monetary return for us, but work to better our income later (going to college for example) or provide a momentary respite so that we can return to working with a renewed sense of self (taking a vacation).
The first step to getting out of poverty is to learn to work with the resources you have, not just to get by, but to work for you later. And not only to use what you have, but reinvest what you get. If you get an extra $5 for mowing the lawn, and you go spend it at McDonalds, you are right back where you started, and what you haven't learned will only hurt you later. There will always be lower, middle and upper classes; the difference will be with those who decide and act against those who don't.
2006-12-17 23:13:49
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answer #1
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answered by Khnopff71 7
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I agree that it would be wonderful to eliminate poverty. But, our economy would just respond by prices rising.
You are on a good start though, Keep working on it. I do not know of any system that has been found to work while doing both: elimination of poverty and allowing for personal freedom and economic freedom. I hope you can.
2006-12-17 20:53:47
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answer #2
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answered by metoo 7
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it does no longer modern liberal!!! it may create laziness. human beings need to maintain their not undemanding earned funds. The unable should be helped. The unwilling could no longer be allowed to stay off of different peoples exertions. in case you seize a guy a fish he will devour properly for an afternoon, in case you coach a guy to fish he will devour properly for lifestyles. human beings favor to take responsibility for themselves. Giving human beings funds, foodstuff, abode and free medical does no longer supply up crime. Why may you imagine that???
2016-11-27 01:40:12
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answer #3
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answered by ? 4
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No, capitalism won't allow your solution.
2006-12-17 20:16:43
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answer #4
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answered by Anonymous
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