People who are ten times richer don't consume 10X more food, 10X more housing, 10X more energy, etc. and therefore their percentage of income spent on almost any basic need will be less than the percentage spent by someone at the bottom.

Every basic expense is going to consume a greater percentage of a poor person's income than a rich person's income so you're really told us nothing in this column.

You help poor people in two fundamental ways:

1) increase their income with higher wages for existing jobs and increased training for more access to higher-paying jobs, and

2) decrease product costs by forcing sellers to make more money by selling more units which additional sales are driven by price competition rather than making more profits per unit sold which is achieved by higher prices, cheaper materials and lower wages.

You force the switch from higher profits based on more profits/unit sold to more profits by selling more units with an excess profits tax on profits above a set percentage of profits/costs.

--David Grace

Graduate of Stanford University & U.C. Berkeley Law School. Author of 17 novels and over 200 Medium columns on Economics, Politics, Law, Humor & Satire.

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