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Why do the rich get richer and the poor get poorer?

It happens every day. Why?

14 Answers

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  • 1 decade ago
    Favorite Answer

    There is a fundamental minimum cost to survival and including the necessities of food, clothing, housing, etc. There is also a need to have money beyond these needs for risk factors-- hospitalization, days without pay, etc. One needs some way of getting this money and getting to a job that gives them that money-- transportation costs.

    Those wealthy enough to own businesses and invest will not do so in areas that are decreasing in regional wealth because it doesn't make any economic sense. Banks refuse to float loans to areas that are showing economic decline unless a massive investment is made from elsewhere. So, businesses move to areas of increasing economic wealth, further depeleting the declining area. Unless there is a check on this motion, declining economic areas become poor because there is no money coming in. Everyone in that region essentially has to go out of that region to earn enough money to pay for all of the things listed above as well as the now increased cost of longer transportation. The poor then also get the stigma of being from an economically depressed area, so their chance of advancement further decrease. Their education system, if it is based upon property taxes, gets a drop in funding further inhibiting their chances of successful exodus from the poor region.

    The rich have more money than the fundamental costs and can use that money to live in an area where the education system is better and the investment opportunities more plentiful.

  • 1 decade ago

    If rich people bought things from poor people, it would switch. But as it is, everybody gives their money to rich people in exchange for goods and services. That's why rich people keep getting richer, and everybody else keeps getting poorer.

  • 1 decade ago

    Because the rich are good at getting richer, and the poor are good at getting poorer.

  • mikey
    Lv 5
    1 decade ago

    Well I think most of it we can change if we want to. I was poor. I could barely afford to pay $200 rent for a single bedroom dump. I went to college, paid for by myself. I got a degree and a job. I work hard and now don't have to worry about money too much. I'm not rich, but definitely not poor any more. In 8 years I went from a minimum wage job to making enough I have plenty to spare. I'm not trying to brag, just saying that in my opinion, there are a lot of poor people who are poor just because they won't try. I understand that there are many people who are that way for reasons outside their control, but most could make things better if they really wanted. If they don't do something the gap gets bigger compared with those who are willing to better themselves and work for it.

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  • 1 decade ago

    The rich have more money (just have money) to spend and invest---making more money for the Rich. However, inflation and expenses rise and the poor can hardly keep up thus getting poorer. Sad, huh?

  • Anonymous
    1 decade ago

    The tax laws of the USA favor the rich and penalize the poor. We all have to get out and vote for reform.

  • 1 decade ago

    because the rich has money to invest ang have a business

    and the poor only has to eat if it´s lucky. and by that friend

    you don´t get so far.

  • anteby
    Lv 4
    4 years ago

    Be prosperous - consume the prosperous ! ! ! the poorest prosperous: george w bush and the pope; right here is tips on the thank you to be prosperous: Create a private, own, Direct, Divine relationship with Our writer and keep Your Soul from faith's and atheist's ideals and start up off Your journey back domicile, to Heaven. <<<<<<< UnConditional Love is the only answer >>>>>>> Love and have faith in Our writer; Love and have faith in your self. "faith is religious fraud"; "faith is the Worst invention of humanity"; "faith is the final lie and deception of all time"; "ordinary certainty has eradicated faith from Spirituality", expenditures of Jesus Christ, Buddha and all and sundry else with religious intelligence. "while a guy or woman is freed of religion, they have a greater advantageous danger to stay a typical and healthy life." S. Freud indexed right here are a number of my expenditures: in simple terms with Our writer's Love and Peace can we be rather unfastened! without God, there is not any Love; without faith, there at the instant are not any Wars! Freedom of religion is Freedom from faith. atheists = each and every of the persons in faith = each and every of the ignorant fundamentalists = each and every of the cults/superstitions = paganism = wicca = taoism = xians = scientology = homosexuals/lesbians = skinheads = politicians = george w bush = attorneys.

  • 1 decade ago

    in a company the people with jobs that are more low class. they get paid the lower than the people who are higher up get paid more, even though thy are all needed to make whatever the company is making.

  • 1 decade ago

    Has to do with investing.

    Has to do with some smarts.

    Has to do with some education.

    50% of the people are below average.

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