Billionaires



We have a lot of billionaires. Forbes reported that there are 621 billionaires in America. Where did they all come from? Do we have too many? Why do we have so many? Can or should we reduce the number? How should we do it?

This is a matter of fairness.

The simplest way to reduce the number of billionaires is to have a currency exchange at a rate of 100 to 1. Each new dollar would be worth 100 old dollars. If we were to do that, the number of billionaires would drop to 2: Jeff Bezos and Bill Gates. We would also restore some sanity to our economy.

Inflation has destroyed about 98% of the value of the dollar. This is a deliberate policy of the Federal Reserve: they have a target inflation rate of 2%. That means the dollar would lose half its value in 35 years. We can see this in the price of gold. From the start of our country, the value of the dollar was defined as 1/22 of a troy ounce of gold. Franklin Roosevelt changed it to 1/35 of a troy ounce. It now (as of March 20, 2020) stands at about 1/1500 of an ounce. That's a loss of more than 98% from the 1/22 value.

This has changed everything. When I was growing up in the 1950s, I saw a $100 bill once. Now, I've used them. ATMs dispense them. This makes sense because a $100 bill is worth about what a $1 bill was worth in 1930. Back then, you could buy things with a penny: that's what gum from a dispenser cost. A chocolate bar cost a nickel. Before the inflation, a millionaire was rich, now it just means he was prudent in saving for retirement. When the EU created the euro, they set its value at about a dollar. They also made the largest denomination 500. It won't be long before we have $500 bills. They would just be worth about what $5 bills used to be worth.

An alternative to a 100 to 1 currency exchange is to replace the dollar with a gram of gold. It is worth about $50.

Here is why it is a matter of fairness.

In the early twentieth century, John D. Rockerfeller was worth a billion dollars. He was the richest man in the country, probably the richest in our history. It's just not fair to him for hundreds of people to come along and claim to be his equal.

Posted 2020/March/20