What is plutonomics?

The term plutonomy concerns the economy where the balance of wealth is extremely uneven. In plutonomics, a small percentage of the population controls most of the wealth. This rich group has the highest income and controls most expenditure and economic growth. This phenomenon is usually created by an explosive economic growth in technology, where there are several selected. Some people think it contributes to the loss of middle class, that they are rich and everyone else. The United States was identified as one of these countries. In fact, the term combines the words of the economy and plutocracy, with plutocracy that means the rule of the rich to create a word that refers to the control of the economy with rich.

It is subject to that the richest 10 percent of US households control more wealth, including money and assets other than the remaining 90 percent. This is one of the things that make the United States an example of plutonomics. A massively uneven division of wealth means that this small percentage extremelyWealthy people have a much greater impact on the economy than the rest of the population together.

According to some theories, plutonomics occurs when a relatively small number of people earn huge amounts of money, often during the economic boom. One of the known causes of these huge income would be progress in technology. When the new technology becomes part of mainstream culture, it creates a wealth for relative several people who control the new technology. An example would be the spread of the use of the Internet generating a large amount for the Internet seposvators rip and owners of the main website, especially now that most households have an Internet connection.

Another aspect of plutonomics states that this uneven division of wealth creates only two economic classes, rich and all others or not rich. This is because there is such a large gap between rich and not rich that they exist very small withThree soil. Rich economic control not only through generating wealth, but according to some estimates, it spends much more than richer, almost 70 percent of all expenses. Further influence the economy affecting national debt; They spend a much greater percentage of their income, borrow more and save less than rich.