DC has a fairly poor distribution of wealth.
Wealth Accumulation Is Largely Uninhibited
The method of restricting wealth accumulation is the taxation system which taxes people/companies with higher profits at a higher rate. However, there are countless loopholes which can be used to avoid tax and these are exploited more so by the rich. Due to this they will often pay less tax than people on lower salaries.
Money Naturally Accumulates
Money can be invested for a reliable return in a variety of ways. Even simply investing the money in high interest accounts will typically result in increases about double that of inflation. Other investments such as property can have risks but typically provide a greater return on investment. Such methods can also be used to avoid tax eg. Negative Gearing
People who don’t have money cannot exploit this phenomenon. Their money doesn’t accumulate and devaluates as inflation continues.
Typically there are minimum wages and slavery is not possible so at least most people can get enough to live.
The result is that DC countries have a worsening distribution of wealth. USA is a particularly bad example with statistics such as:
- The bottom 80% of Americans own 7% of the nation’s wealth.
- The top 1% own 40% of the nation’s wealth.
Through modern technology most low income earners are comfortably able to feed, clothe and house themselves. Despite this there is extreme wealth inequality, far beyond would could be considered to be based on merit.