why the rich are getting richer and the poor poorer?

Answer 1

GREED!

Answer 2

Yes the rich are getting richer....and so are the poor!

This is perhaps the biggest myth in America today.

Today the poor often have cell phones, cars, cable tv, and dine out.

My great grandparents were poor. They lived in an 8' X 13' one room cabin and were often hungry. How many people are significantly poorer than that today?

The rich are getting richer, but so are the poor.

This is because of capitalism. I've seen CD players at Walmart for $10. 20 years ago they were around $200 and that is NOT adjusted for inflation (might be $400 in todays dollars).

Capitalism enables both the rich and the poor. It's also interesting that first generation immigrants to the USA (generally poorer than dirt) are more likely to become millionaires than those of us who are born here. They work hard, start companies, and eventually succeed.

Many will argue that the gap is increasing, however that doesn't mean that the poor are poorer. If Microsoft's stock doubles, so does Bill Gates net worth. The gap has just doubled....but why does this make the poor poorer?

Answer 3

I'm sure that you have heard the old saying that goes, "The rich get richer and the poor get poorer". Well, there's a reason why the saying exists, and that's because it is 100% true. The rich do get richer, and the poor do get poorer. But why is that?

First lets take a look at why the rich get richer. The rich have their money working for them. So, they don't need to work in order to make money. Their investments provide them with capital gains or passive income. The rich focus primarily on "capital gains" and "passive income" instead of "earned income". The rich are constantly creating and building assets with the money they have. They create or build more assets to provide them with more sources of passive income. The rich don't need to worry about layoffs or taking days off because they don't work for their money. Remember, passive income is the key to becoming wealthy.

The poor on the other hand focus too much on "earned income". The main source of income for the poor is "earned income", and it usually remains the same amount for a long period of time. In the meantime, the expenses of the poor generally increase over time. A new child comes along, medical bills need to be paid, gasoline prices keep going up, taxes go up, etc. And while all this is happening, the amount of money from a poor persons earned income remains that same. That's why the poor get poorer. The make barely enough in earned income to cover their expenses. The rich on the other hand make well more than enough in passive income to cover their expenses.

If you focus too much on "earned income", you can start making the transition to financial freedom by learning to invest for capital gains and passive income. The poor just keep getting poorer because most of them are afraid to make the leap from earned income to passive income. They are addicted to their earned income, and jump for joy whenever a raise or promotion comes about. Don't become addicted to earned income.

Answer 4

Because the rich usually own the big busniesses, and the poor are usually hired. The rich can invest large amounts of money to make profits and such...the poor dont have that much, and what they have, they probably can;t invest cause they need to spend it in order to buy the living requirements..like a house first, a car, food..college.

Answer 5

Untrue assumption.

I was once desperately poor, but no longer. In fact, one of my favorite pastimes now is complaining about the taxes I pay to support social relief programs that I never took advantage of (shame kept me from it).

But, that's just me.

Besides, the phrase is, "The rich get richer, and the poor get children."

Answer 6

If all the money in the world was divided equally amongst the people of the world, within 24 hours there would be rich people and poor people...that’s just the way it is!!!

Answer 7

This observation is correct and there are some exception.

The main reason is, it takes money to make money.

Most rich people get richer by investing their money. If you do not have the money then you are out of luck.

Answer 8

because all the american countries are going foriegn which is cheaper for them because they pay like what .2 cents an hour and then when they transfer over seas that puts thousands of jobs unavailable to americans which creates a bigger distance between poor and rich because the rich can actually afford the pirices as they rise and the poor cant

Answer 9

Education.

Answer 10

the rich people are taking the poor peoples money

Answer 11

Most of your countries and nations here on Earth terrible forms of market economies. On Mars we don't have one because our money is distributed by our leader evenly. After that it is up to the Martian how to use what they have to make a living.