The introduction could begin with the phrase “everyone is the architect of their own fortune”. It sounds nice, but the reality is much bleaker. Most people who earn a salary close to or slightly above the minimum wage are unable to escape the system, not because they are lazy or uneducated, but because it is mathematically impossible to do so. This is not a motivational article, but a glimpse into reality.
The reality of the average person
If income is modest, most of it is spent on survival. There is really nothing to optimize — housing, utilities, food, transportation, and other daily expenses. Once the bills are paid, there is so little left that it is impossible to save. Wages are low, but expenses continue to grow faster than wages themselves. This injustice is not the fault of the people — it is the way the system is structured.
Labor taxes per worker are close to 50%, which are successfully “hidden” under various tax categories. For example, employer tax is essentially an employee’s contribution to the system, but it does not appear in either gross or net salary figures. This is the reality, and it will not change for a long time.
Can the average person escape this vicious circle?
No, you can’t, because as I mentioned, mathematically it’s impossible to do so. The advice to “work more, save more, and be free” doesn’t work in this context because it’s not based on reality. It’s not the individual’s fault. It’s a system where the biggest tax burden falls squarely on the shoulders of workers.
The road to change
There are not many options for individuals to change their current situation, but the quickest way is definitely to change their environment, i.e., to move to another region, city, or even country. This is not running away, but going where the same job pays more or where the tax system works in the interests of the individual rather than the system. You can also change your profession, but that is not so easy — not everyone can acquire new knowledge in a short period of time, and not everyone has the time to acquire new knowledge. If this were a motivational article, it would use differently structured sentences, such as “anyone can do it if they want to,” but I like statements based on reality. In any case, you have to constantly improve yourself as a person until you reach the point where you no longer feel that you are living for the system, but that the system is serving you.
Why the situation will not change for a long time
The labor tax system is a source of state revenue. It cannot be reformed in the short term without causing the system to collapse. Reforming the system will take years or even decades (generational change, which also changes society’s thinking) — tax and government reforms, as well as demographic issues. Solutions to such issues are not possible in the short term. Individuals in such a system may feel like losers, but those who serve the system take advantage of it. In short, the average person cannot escape the system if they continue to live within its established framework. If income is too low and the tax burden too high, it is impossible to “break out” by saving alone. Real “breakouts” occur when the environment changes.
It is important to remember that taxes are necessary for society to exist in relative order, not chaos. They finance infrastructure, public safety, health, education, and other important expenditures.