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

Question

This was asked to me this morning by my 10 year old daughter while watching the news. At a loss as to what to say any help?

I know its a bit heavy, tried all that money makes money etc - think she was just a bit fed up she couldn't have school dinners today!

Answer 1

I agree with that statement somewhat....but I also believe we all have choices that are made regarding our finances. It is a good thing to teach your children now that having an education will get you somewhere in life......All of you can agree with me, reality is.....if you have a college degree.....LIFE IS A LOT EASIER. You will have many options for yourself. Keep informing her of this and she will know what is important in life....having to struggle because she chooses to....or WORK hard and she is able to have many of her dreams come true:) good luck!

Answer 2

I'd tell her that it isn't allways the case, afterall you don't want to think the world is totally unfair. Tell her that it is true that if you have money it is most likely that with that wealth you will accumulate more, also that if your poor it's likely that you wouldn't become rich.

But ofcourse it doesn't mean that there aren't exceptions to that rule, firstly just because your rich it doesn't mean you wont lose it all, afterall just look at Enron a lot of people lost their fortune due to that. Ofcourse some people don't stay poor you firstly have the lottery, but ofcourse you have those with ideas like erm.. Yahoo, Ebay, Google, Microsoft the list is endless you have to remember if you go back far enough everyone started off poor!! Remember alot of people if they work hard enough can change their circumstances just take the initiative!

The world is generally black and white, rich and poor etc.. but she'll find out in time that there are those who cross the line, those that start on one side but end up the other, the world isn't black or white its just simply different shades of grey.


Anything can happen!!

Answer 3

Because the Rich know how to play the Middle Class. Showing them all the things the Rich have on TV. Commercials, don't you want this, don't you want that.
Then the Middle Class wants more than they can pay for, and they demand more money from employers. Who act like it's killing them. And it does drive the managers nuts. But the
Rich just raise their prices on their goods.
Thus, the Rich get richer. The Working Stiff brings home more money every week but doesn't have any more money,
because things cost more. And the Poor get clobbered!

Answer 4

You can tell her this: Rich people are only rich if they have goodness and God in their hearts. Poor people are not poor in spirit, if they have the love of God in their hearts. You can't take anything of material nature with you when you die. You come into this world naked without anything, and you go out the same way. Rich people are not always happy, and they keep looking for stuff to make them happy. Jesus said if you want to follow me, give your "stuff" away, and follow me. Stuff does not make most people happy, they just keep on looking. She is richer than she thinks she is, so tell her that. Remind her, she is only as rich as she is inside, and money does not buy happiness, it just helps to pay the bills.

Answer 5

Because the rich people have the money to reinvest and make more money whilst the poor are forever scrapping around to keep their heads above water to pay their bills and live (or exist)

Answer 6

Oh...yes..
I think this happens because ...the one who is rich ...doesn't believe in God , and he is afraid of a lot of things ..even the fact that one day he could be poor.So he does everything to increase his fortune although ..a village could live with his money until the end of their lives ...The one who is poor , sometimes is a believer. He knows that God can make him rich within 2 days , and his afraid of nothing, he doesn't try to get rich , because sometimes this meand making a business and paying small money to those who work for him ...in order that he gets rich...So he lives like a poor day by day , works hard and earn only money to eat something ..Satan who is the enemy of God who fell because he wanted a glory like the one deserved only by God - satan works to make some rich ..although they don't deserve ..and works to make other poor although they deserve more...because they fight to be right .But you see, Jesus said that in Heaven the last will be the first...What did a rich man ?Did he improve the school education?No , he gave money to improve the building of school , but the poor came to school and improved the mind of the teacher , asking her to answer him to this question ....''why do you hit my daughter ?Insult her ..push her hair...Why did you bring this thick stick to frighten the schollchildren , hoping that they learn better because of that stick, when actually they are too little to be interested of academical things made by adults..like school..

Answer 7

Rich people have money to invest hence gaining intrest. Poor people have none to invest hence no intrest. A bit heavy for a kid to understand.

Answer 8

rich people don't have to spend all their money just trying to buy groceries and pay the rent so they so they are able to put more in the bank. poor people have to spend all they can make just trying to pay the rent and feed their family so they don't have any left to save. try explaining it to your 10 year old that way.

Answer 9

Because rich people normally have large bank balances which means high rates of interest and poor people usually spend large amounts of their meagre income on debt fees and charges ... I know I do.

Answer 10

an answer that your 10 year old can understand:
"most rich people are more selfish than poor people. If you give a lot, you become poor."
"Daddy, are we rich?" "Not really, but we are not selfish."