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by csytan 2748 days ago
Having more wealth gives you access to more efficient financial vehicles that generate (or maintain) wealth.

When you're poor, you are taxed:

- High interest loans

- Remittances with high fees e.g. with Western Union

- Using Cash (on average, you pay a tax on items which have the credit card fee priced in)

- Access to banking (low interest savings/checking accounts)

- Credit cards with high fees, low kickbacks

As you get wealthier:

- Credit cards with kickbacks (e.g. travel, cash back)

- Access to bank accounts with higher interest

- Access to international banking

- Access to international stock markets

As you get wealthier:

- Ownership of businesses which allow you to store your wealth without getting taxed

- Ownership of international businesses which allow you to find the best tax situation internationally

As you get wealthier:

- Access to private markets

- Ownership of businesses where you can directly partner with other businesses

- Running a financial institution

- Running a business so large that you can influence governments

- ...