Why is 40 percent of the nation's wealth owned by 1percent of the people?

Question

in the United States.

Answer 1

The United States is rich for only one reason, slavery. Sad but true

Answer 2

Firstly, it's because different investments offer different returns. The distribution of returns is "leptokurtic" meaning a small number of them score hugely: these investments can return many many times the original stake. Bill Gates' long term ownership of Microsoft shares is a case in point.

Secondly, there is a positive feedback that results from amassing returns on savings. People who have more money simply have more money to make more investments and they can afford to bear the risks of the riskiest investments that have the possibility of generating the higher, even extraordinary returns.

Thirdly, as long as these investments aren't sold, they can continue to compound and increase in value without the burden of a capital gains tax.

Answer 3

Because we've raised two generations of people who believe the government owes them something so they sponge off of the tax payers and don't go out and earn their own money.

I applaud those who have earned great wealth, as these are also the people who hire everyone else, they create companies and jobs. I don't know too many people on welfare hiring employees.

Answer 4

The formations of Oligopolies & Monopolies; AND compliency of the American Public.

"Trusts" allow people to squander wealth and pass it to their kids. Most of the kids who are inheriting don't have a passion for the corporations/ trust, but they have acomplished people to help them play the game & keep the wealth. Just like in the board game "Monopoly"

Another part of the problem is the mentality of the USA citizen. We've become so "Socialist" that we expect everyone else to do it for us. Educate our childreen who don't want to go to school, sue 911 for taking 15 minutes to get here, and free health care so I can get free pain pills. "Do not wait for leaders; do it alone, person to person." (Blessed Mother Teresa)

Answer 5

In my Social problems class, they say its more than 40% but closer to 75% by the top 1%. Its because we live in a capatalist society. They do not pay much on taxes according to how much money they make. It should be changed but oh well. Richer get richer and poor get poorer.

Answer 6

Well, either it's old money, they've worked very hard to obtain their wealth or they lucked into it.

Answer 7

some people are taught they cannot be rich so they work to make just enough to get by. there mind tell them one thing but their action does another.you were meant to be rich but you don't know how to make it happen.