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Why do the rich get richer and the poor get poorer?

The 1% people keep this secret

By Mathis Raja OfficialPublished about a year ago 4 min read
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Why do the rich get richer and the poor get poorer?
Photo by Max Böhme on Unsplash

Introduction

The rich get richer and the poor get poorer because capital assets such as education debt and college tuition are significant factors in wealth distribution.

The rich get richer and the poor get poorer because of capital assets.

Financial assets include real estate, vehicles and businesses.

Financial assets are more valuable than human assets.

Human assets can't be passed on from one generation to another like a financial asset can.

The rich get richer and the poor get poorer because of human assets.

You may think that the rich are able to achieve their wealth because they were born into a family with money, but this is not the case. The rich get richer and the poor get poorer because of human assets.

The poor are more likely to be in debt, which makes it harder for them to save money or invest in investments (like stocks). They also have less access to financial advice than those who are wealthy; otherwise known as “financial literacy” classes at school or college.

Additionally, if you're poor and don't have insurance coverage through your job then there's no way for your employer-provided health insurance plan (or any other type) except Medicaid coverage which has limited benefits compared with private healthcare plans offered by businesses but still doesn't cover everything including prescription drugs which cost thousands per month!

The top 20% own 50% of all financial assets.

  • The top 20% own 50% of all financial assets.
  • The bottom 80% own only 7%.
  • The top 1% own 40%.
  • education debt and college tuition.
  • College tuition is rising faster than wages, and it's increasing faster than the cost of living.
  • College tuitions are increasing faster than the cost of housing.
  • College tuition has risen steeply over the past few decades due to several factors, including:
  • The rise in student debt levels (students are borrowing more money to pay for their educations)
  • Rising living costs at institutions that offer on-campus housing (an increase in utility bills, food prices and rent)
  • There is no such thing as a level playing field.
  • A level playing field is a myth. There are many reasons why the rich get richer and the poor get poorer:
  • The rich have more capital assets than the poor, such as money or property.

The rich have more human assets than the poor, such as education and healthcare access.

The rich have access to information about how to make money from their capital assets (for example, investing in stocks). This makes it easier for them to earn more money than those without this type of knowledge because they can learn about how things work so that they know what kind of investments would be profitable for them personally.

The lucky few who know how to get by in today's modern world are able to enjoy its fruits, while many others remain ignorant and impoverished. There is no excuse for such inequalities when the means of success have been clearly defined!

Sources to build their wealth.

The more money you have, the easier it is to invest in yourself—which means taking on debt or investing in a business that will make you even wealthier over time. You also may have access to better information about these investments than someone who doesn't earn as much.

For example, let’s say there are two people—a poor man and rich man—who want different investments: one wants stocks while the other wants bonds; one wants real estate while another prefers buying collectible items; one takes risks with his money (by investing in stocks), while others prefer safer options like bonds or savings accounts; etc., etc., etc.. If only one person has access these kinds of options then they'll end up doing better than if both had equal access!

Wealthy people are more risk tolerant and have access to better information than poor people do.

It's a fact that the rich have access to better information than the poor. The wealthy are more likely to be aware of new developments and trends in their field, while the poor may not have as much knowledge or experience. Wealthy people also have time on their sides, which allows them to make better decisions.

The wealthy may also be able to afford health care coverage that is better than what is available for those who are not as well off financially, who may not be able to afford regular checkups or hospital visits if something goes wrong with them physically (for example: heart attack).

The wealthy are positioned to build their wealth while the poor are not

It is not just that the wealthy have more opportunities to acquire wealth, but also that they are in a better position to build it. This is because of the information, education and time available to them. The rich have access to better information about investment opportunities than the poor do.

They can also afford higher education which gives them an edge over their less-educated counterparts when it comes time for them to start trying out new ideas or strategies on how they might make more money with what they already know (or think they know).

In addition, since wealthy people tend not only be risk-tolerant but also patient when it comes down to building their wealth, they'll typically wait until after their initial capital has been established before taking any new risks—which means that when those risks do come along later on down the road, chances are good that these individuals will be successful at turning those opportunities into actual dollars!

Conclusion

A person who already has money is in a better position to make more of it than someone without money.

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About the Creator

Mathis Raja Official

"Financial enthusiast & affiliate marketer sharing my journey through finance, blogging, & YouTube videos. Helping others make the most of their money & reach financial freedom."

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