Why will the poor people of the world remain poor and the rich get richer?

Question

Do some need to serve political or other interests first and then the people´s?
Where are all the billions of dollars of surplus money in the world going to?
Is it something wrong? Is it ethic to make more profit merging multinational companies until they become megabusiness that control and put their price on everything?
Is humankind better off today than a hundred of years ago?
Factors explaining this,etc.

Answer 1

Republican greed!

Answer 2

It's called conscience. People who have made it their life's calling to make as much money as possible don't know when or how to quit. Ethical and moral considerations for the people they are taking it from by whatever means necessary have gone by the wayside. Corporations have become multinational and do not answer to any constituancy but their stockholders who, of course, want more money. Human kind is never better off, only some small percentage. The bulk are destined to live as they always have. It would take a major revolution to change it, but I'm not sure what kind of revolution that would be since governments seem to be pretty ineffectual in the face of the money holders.

Answer 3

Ah, another non-reader! There IS no surplus money anywhere. If you take all the wealth in the entire world and divide it up evenly so that each and every person in the entire world would have the same amount of wealth, then every single person in the world would be abysmally poor. In many ways, people are better off today than 100 years ago. Human lifespans have about doubled. People have TVs, radios, cars, all sorts of things, including cell phones and computers. 100 years ago, most people had outdoor privies, had to carry water from a well, creek, what have you, used wood or charcoal or coal for cooking and heating, etc. Of course, they had more leisure time, more friends, more freedoms, etc.
So, you decide if they are better off now or then.

Answer 4

The truth about the capitalist business world is that get-rich-quick schemes such as buyouts, IPOs, conglomerates, acquisitions, mergers, and the stock market do not actually work.

Remaining solvent does not actually exist within false economics capitalism.

Pathological lying about profit existing in the capitalist business world, or millionaires existing within capitalism, is deception committed by the 21 organizations spying on the public with plain clothes agents, (with covert fake names, fake backgrounds, and fake property).

Actual economics involves the persons paying the monthly business loan payments of companies owning the companies, and voting at work in order to operate the companies they are paying for.

Capitalism is imaginary parents psychology, false economics, and criminal deception of the persons paying the bills (including the stocks and bonds, or shares) of companies.

Answer 5

First, wealth is a direct function of productivity. The average American today produces 200 times as much output as the average colonial American. Further, the average American produces at least 30 times the hourly output of the average Bangladeshi.

We have a pretty good idea of what is required to lift a nation out of poverty, but it goes against many cultural values to do it.

First, education is critical and in particular the education of women. It may sound strange that it matters more for women than men, but it does. Women are often cultural inferiors and they bear children placing them at greater risk. If women can effectively sell their labor without engaging in prostitution or similar servitude then society as a whole becomes richer. Second, and this is just as critical, since labor and capital tend to be competitively priced in most societies only education can make people more productive. Education is the primary determinant of national wealth. For every year an American goes to school past sixth grade, they get an 8-12% pay increase.

Second, private property rights are critical. The tribe and the tribe's needs cannot matter. No one can have a say over property except the party that owns it. If you cannot firmly claim assets, they cannot be used as capital and then they cannot be used to build businesses.

Finally corruption has to be wiped out in a country. A corrupt politician effectively steals the private property of business owners and in effect drops wages more than they steal. So a $1 theft might have the effect of pulling $2 worth of wages out of the economy.

There is no surplus money in the world. You may view money as surplus, but when you start dividing it out, you will realize none exists.

And yes, the megabusinesses are very important. The fact that they can merge is a wonderful thing for the world's poor. Not only is it a triumph of private property rights, but it makes the world more efficient. Fewer resources go into creating the world's goods. It makes the world less poor.

Multinational firms pay competitive wages for the society they are in. In fact, they usually pay above the competitive rate to get the best workers.

A way to look at this is to look at the world's budget constraint.

The world's income is equal to the amount consumed, plus the amount invested in machinery,equipment, software and education to support future consumption plus amounts given as maintenance money to the governments.

People tend to get paid the marginal product of their labor and people who provide capital tend to get paid the marginal product of their capital. No one gets any extra.

The rich tend to be richer because they are willing to engage in riskier behaviors. It turns out that safety is an "inferior good." Or in other words, as people gain wealth, they take more risks. Most people couldn't stomach the risks a Donald Trump takes, but they depend upon him taking those personal risks to be employed. The employees of Donald Trump do not have to take risks with their salaries because Donald Trump does it on their behalf. In return, he pays them less of the company's product. They are happy with it because they do not want their salary to vary from day to day as sales change. A bad day at a casino would otherwise require the staff to pony up money. Could you imagine going to work and your boss telling you that you are required to bring in $1000 this morning because sales are down?

Answer 6

If you have $100 and earn 5% in a year then you earn 5 bucks. not much earnings you are still poor

If you have 1 million dollars and earn 5% your earnings is $50,000 dollars a pretty good haul

if you have $100 million dollars and earn 5% that 5million dollars

the poor stay poor the rich get richer is that simple enough?

Answer 7

It's called learn helplessness. People make one or two attempts to fix their situation such as homelessness or spousal abuse, and they decide that because it didn't work once, they are stuck and will never get out.

Answer 8

Because it's easier. It takes money to make money.