Ever wondered why the rich get richer by the year?

Why is it that the top 1% are always the ones benefiting tremendously in the economy?

Why is it that the poor and the middle class are always the ones benefiting backwards whilst the upper class and the rich benefit tremendously? I know a lot of things look unfair, but if you analyze what make the rich richer, it will be simpler to understand. So, why do the rich get richer?

  1. Investments

The rich get richer cause the assets they invest in like stock or property increase rapidly annually. Although assets like stocks carry substantial risk, the rich are able to take that risk cause they have much more in their accounts to replace lost funds. Given that stocks or property increase in their favor, the rich benefit tremendously. Due to smart investment choices such as real estate, stocks, forex etc, the rich augment their accounts to incredible extreme levels.

 

Poor people have a hard time investing cause they might not have the knowledge to invest, or they might not have the necessary funds to do so. Having money plays a huge role in investing, so if you don’t have that, what are you really gonna invest, huh?

 

  1. What they create is valuable

Why do search engines like google rake in a lot of money? Or why do companies like Microsoft or coca cola make a lot of money? Well, these companies make money cause the products or services they offer are used or purchased by millions of people, especially those of the middle class. The reason why the rich benefit significantly is only because people love their products and services, so as a result, their wealth increases when people use or purchase their products or services.

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  1. Political, economic and social power

Rich people have the power to influence people. Plain and simple. Some rich people have too much power to the extent where they pay little (tax incentive) or no tax at all. Although there are some legitimate lucrative companies that do pay tax without hassles, those companies are in the minority. Tax evasion is common amongst some rich people, so as a result, their wealth increases as long as they are not charged or caught for tax evasion. Remember if the rich pay little or no tax, their wealth increases in the process.

 

  1. Near monopoly

Monopoly by definition means a specific person or company is the only supplier of a particular product or service in a particular region or environment. Although considered illegal, there are some companies that do practice this in a subtle form which by definition is considered a near monopoly.

For example, lucrative companies like unilever own around 400 name brands around the world such as dove, axe, sunsilk and many more. It’s more likely that when you go shopping you purchase a unilever based product cause there are so many brands that are manufactured under and owned by unilever. If unilever did not have competitors like kellogs, then unilever would be a pure monopoly. So basically, the rich get richer cause the products they create, look or taste different, but for a sure fact, money is going to the same place, every single time, even now as you are reading this. Plain and simple.

 

“You put yourself in a tight corner of failure if you think ‘it’s only the rich that get richer while the poor get poorer’. No! Something good can come out from you no matter who you are, what you have done and where you have been to! – Israel ayivor

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