Capital is multigenerational
Inherited Capital is the greatest source of social inequality. Capital ownership keeps specific families on top the social and wealth pyramid, for multiple generations. Capital and power are synonyms. The system of social class with its various divisions sits on the ownership of capital and wealth above any other consideration.
In the Virgin Islands, land ownership- land is capital- by the native population after slavery and the plantation, propelled certain families up the social ladder who remain at the top even to this day, aided by distinctions such as the ability to read and write, speak the Queen’s English, wile, and a fairer skin.
OK. A glance at the list of global corporations and their owners tells a story. Most of these businesses are American, Chinese Pacific, and European. From Walmart to JP Morgan, Facebook to Twitter, Ali Baba to TikTok, Virgin Atlantic and Dyson, Marriott to the Hilton, Apple and Google, Tesla and Exxon Mobil, Cartier, Christian Dior, and Louis Vuitton, then add a host of international businesses, from India to South Korea and Mexico to Nigeria –corporations concentrate wealth and power in a few hands.
Global capital, controlled by a handful of people and their families is the reality: the norm. Global corporations and their owners rule the world. Albeit, fund managers, trusts, offshore accounts, foundations, and complex securities, disguise this ownership. Global Capital uses an army of lawyers, accountants, bankers, financiers, security types, and administrators: the buffer between the 1% and the rest.
Then, the nature of capital is such that it outlasts its owners who are wise enough to ensure the control of these assets stays within their families or a select group of individuals and organizations after they die.
A second reality is that in societies that are strong scientifically, socially, and economically, sustaining wealth from one generation to the next is much easier than in poorer lands. A billionaire in the USA is better able to ensure future generations enjoy his wealth than a billionaire in Nigeria. Social and economic stability better protects the wealthy. In a crisis-ridden land and war-torn country, a fortune is lost at the drop of a hat if the investor is not cautious.
Now, capital can pre-exist wealthy individuals, who are heirs to capital owned by their forebears, this is achieved with wills, trusts, and foundations, the means of ensuring the continuing hegemony of the founders and pioneers after death. Trusts and wills ensure their children are unable to dispose of that capital when they pass on, this is achieved through complex and elaborate legal and financial device.
One of the features of wealthy families is that they are inheritors of wealth and capital. The idea that all start at the same level, and have access to the same opportunities, for example, the idea of the ‘’ American Dream’’ is fairy tale.
Inheritance drives social inequality in spite of attempts by socialist governments to create a level playing field through wealth tax, inheritance tax, and progressive taxation. Two similar individuals with equal competence, where one inherits millions and the other encumbered by poverty and deprivation. It is easy to know who will prevail in the game of life. Capital will ensure the former rules over the latter.
Then, geography is a major part of why social inequality exists globally. A child born in a rich country with an income per capita exceeding $50K with access to great healthcare and education has better life chances than a child born in a poor and destitute country where the average income is $1K per annum and life expectancy is 50. Education and competence may aid the child in the poor country, but usually, that means migration to the richer land.
Capital ownership and inheritance are by no means the only factors in the wealth stakes. Education, competence and sheer good fortune all factor into why some are wealthy, middle-income, and poor. Inheritance remains invincible as the route to wealth, however. Capital and its ownership is the most brutal divider of men into the different social and income groups. That is the narrative of history.
Dickson Igwe
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9 Responses to “Capital is multigenerational ”
For the most part, they owned and control nearly 100% of wealth, power, resources, businesses, and levers of government support. They used government to amass wealth, power, resources, capital etc. Blacks inspite of their labour building the economy, power of the US, industries, ie, finance, banking, transportation, telecommunications, shipping, education, etc, earned less than 0.5% of wealth in the US. The situation in the UK is more than likely similar to what situation is in the US. Further, the sociopolitical structure weighted and designed to benefit Whites and disadvantaged Blacks, ie, political system, courts, extralegal system, etc. For example,,the US Homestead Act of 1862 afforded residents who were living on land for at least 5 years and making nominal improvements to the land were given titled to 160 acres. Nevertheless, Blacks were not allow to participate in the program; there were/are two Americas—-one white, one black.
Moreover, for the last several weeks, Dickson has fueled a discussion on capital, wealth, taxes and debt. It came out in the discussions that the rich and wealthy can effectively used taxes and debt to get richer/wealthier; whereas, the same taxes and debt make the middle class and poor poorer. It also came in the discussion that he who has the gold makes the rules; ie, they can influence politicians to laws to benefit them. In the US, the tax is an incentive government guidelines on how to partner with the rich
to do what the government wants and need to do; it is a punishment for the poor. Access to capital is used to invest in assets to build wealth to build generational wealth.