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e diagram that follows shows how the corporate structure sits outside your personal ine statement and balance sheet。
How the Rich Play the Game
Is reduced/diminished by expenses
Assets 》 Ine
(through personal corporation)
It is the knowledge of the power of the legal structure of the corporation that really gives the rich a vast advantage over the poor and the middle class。 Having two fathers teaching me; one a socialist and the other a capitalist; I quickly began to realize that the philosophy of the capitalist made more financial sense to me。 It seemed to me that the socialists ultimately penalized themselves; due to their lack of financial education。 No matter what the 〃Take from the rich〃 crowd came up with; the rich always found a way to outsmart them。 That is how taxes were eventually levied on the middle class。 The rich outsmarted the intellectuals; solely because they understood the power of money; a subject not taught in schools。
How did the rich outsmart the intellectuals? Once the 〃Take from the rich〃 tax was passed; cash started flowing into government coffers。 Initially; people were happy。 Money was handed out to government workers and the rich。 It went to government workers in the form of jobs and pensions。 It went to the rich via their factories receiving government contracts。 The government became a large pool of money; but the problem was the fiscal management of that money。 There really is no recirculation。 In other
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