how do the rich stay rich and the poor stay poor?

Answer 1

this is a very complicated question with a lot of underlying social and political causes, but from an economic point of veiw there are a few answers.
First, the rich tend to educate their children, and thier children in turn become very well off. in contrast the poor tend to stay uneducated, which reduces their earnings and therefore savings capacity.
The second and probably more important factor is that the very rich do not really work, their money works for them. The true definition of a capitalist is one who provides capital: money, land, etc to production. The rich are capitalists, they are the people who own 95% of the stock market in the US. They are the people who also tend to run most of the largest US and EU companies. Unlike the poor, who's income is completely derived from their labor, the rich earn interest on their money. The rich do not simply have good incomes, they have WEALTH, and wealth is the lifesource for remaining rich. In many ways the rich cant help but get richer, thats why when the economy grows the ienquality in the economy tends to increase.
If you dont understand what I am talking about, here is a simple mathmatical explanation of what I am taking about:

if I am a capitalist with $3,000,000 in stock, bonds, etc (lets leave the mansions, cars, etc out of this example).
Assuming a conservative 5% rate of return on the investment of $3 million, I am making $150,000 a year in interest. Even if I consume all 150K, i will still have the same 3 million at the end of the year. But most of the really rich earn a much higher rate of interest because of connections, better interest rates offred to high end customers, etc, so lets assume instead of 5% I make 10% a year (average US stock market rate is actually along 11% over the last 75 years), at 10% I am making $300,000 a year, without having lifted my finger. That means that even if Im unemployed, I would need to spend 300K a year just to NOT have my wealth increase. hece, the rich get richer, because consume as they do, most of them do not consume as much as they get as their rate of return. Since we have no real wealth tax (and president Bush is trying to eliminate the little we do tax, he's calling it the death tax), the rich continue transfering their riches from generation to generation, getting ever richer.
The poor on the other hand never develop enough wealth to ever break out. the typical family in america has only around 50K in savings, by the time they retire most americans consume their entire savings, leaving their heirs little or nothing. And so the cycle goes on.

Answer 2

The poor don't have to remain poor . Five years ago I was making $6.75 per hour at a motel with a wife and 4 children. Last year I made $200,000.
However, I am not rich . It takes years of hard work and savings for most people to become rich . We pay so much tax today that it has become harder and harder to become wealthy. It is very easy to remain poor if you decide not to put more effort in life. I know its not easy, because I was there, but it can be done .I have a friend in Mexico who is a doctor . He grew up poor with15 brothers and 11 sisters (some from a previous marriage) and almost every one of his siblings is successful .

Answer 3

At present there is no means by which a poor man can acquire some of those hereditary qualities that are needed to become rich. The only solution is starting eugenic policies and government sponsored sperm banks so as to bridge the gap between the rich and the poor in hereditary qualities - except compassion and love for which there is no dearth among the poor lot.

Answer 4

Not all rich are able to remain rich and not all the poor remain poor. The poor who become rich are either gifted/talented and hardworking, while the rich who become poor are those who turn stupid under the influence of wealth. The saying poor becoming poorer in advanced or developing countries is a great lie. The evidence shows that poor becomes less poor with economic growth and development. But it is always true that the rich becomes richer with few exceptions. But everyone has to become richer, both the rich and the poor. If as a poor man I see myself becoming richer over time, why should I become jealous about my rich neighbor becoming richer. We need rich neighbors and countrymen if we are not so rich or poor.

Answer 5

Well, this is just my opinion, but I think the cost of living is just too high. The people with a lot of money mainly are born into it(unless they are super smart). Unless they get super lucky, most poor people can't get much money, or manage it. The way our government is run is not by the people. It's to control the people including our money. I guess that's why everything in life is taxed. How long before they tax air?

Answer 6

Rich people don't blame others for their problems and make excuses for themselves.
Rich people don't produce children that cannot afford to take care of while they are in the process of getting rich.
.

Answer 7

Successful people teach the habits of success to their children. People with education teach their kids to value education. The poor usually stay poor because they don't acquire the values and skills necessary for success.

Answer 8

Poverty is a disease. Rich people are not smarter than poor people. They save money and accumulate wealth, poor people get money and spend it without a reward of any kind.

Answer 9

1. The rich teach have resources, contacts and habits that teach their kids how to acquire and grow wealth.

2. When 10% of the population of the world owns more than 90% of the wealth, it takes a bit of imagination to burn through that type of inheritance (they just ain't that creative).

3. The 10% of the wealthiest have amongst them the political powerful. Those that aren't politically powerful have more direct access to those politically powerful peers. The game of wealth acquisition remains largely a closed club.

The fact that such disparity does exist says something is awry in the good world of capitalism... and I kid you not when I say the 'good' world of capitalism.

Peace

Answer 10

Would yuo a. crack up b. commit

suicide c. join a cult d. be a stone

believer in Reader's Digest or Rolling

Stones e. be effeminate

f. cook only like Justin Wilson

g. go underground and listen

to IB. h. Join a JT hate group

i. Listen to Tull or The Beatles


j. Hate American taxes.


k. Lose yourself and gain nothing



get mad if I don't do the rest. It

never accosted you