January 5, 2026
Our economy is starting to bifurcate into two different economies – the real economy and the elite economy. In a prior post, I mentioned the economic equilibrium that money equals debt. This means that any time money is gathering in one area, it is being caused by deficits in another area. What is now becoming clear is that money is gathering with corporations and the wealthy 1% of households while leaving the government and the remaining 99% of households deeply in debt.
There is a flywheel effect that started decades ago, and we are now witnessing the negative ramifications. When debt is issued, it must be repaid with interest. Well, if debt equals money, then it takes more than the amount of debt issued to actually repay a loan. Most of this money from interest gathers in the hands of the elite and stays there. They use it to invest in stocks, bonds, real estate, and buy luxury goods and services, but that money never cycles back to the real economy. Instead, those in debt realize they need more debt to repay their current debt, and all that newly created money continues to siphon to the elite economy, exacerbating the issue.
In a healthy and balanced economy, the money created from debt stays in the real economy. It finds its way back to the players in debt so they can repay without needing to go deeper in debt. And any that makes its way to the elite economy has a method to get injected back into the real economy through tax policy, charity, and a smaller elite economy. Instead, the elite economy thrives while the real economy is on life support. We celebrate record stock prices, real estate prices, and billionaire entrepreneurs while wondering why the 99% are struggling so much. You can’t have one without the other.
We need to wake up to these realities and how our own purchasing decisions affect it. We need to directly support the real economy through supporting small businesses and community-based organizations. The 1% are gathering so much wealth that they are beginning to infiltrate more parts of the real economy. The travel industry is one example where hotels that cater to the uber wealthy are the ones thriving and any hotels that cater to middle income earners need to franchise with corporate hotel brands to stand a chance. Yet that means less is being left for the employees, small business owners, and the local community. We hold the power to make hotels thrive without the wealthy and without large corporate brands owned by distant shareholders. Book through Equation Travel and start being part of the solution.