Do the rich get richer? What are the mechanisms which aid, or oppose such a phenomenon, under normal circumstances?
- Money: Since money is a requirement for various endeavours, the rich have more options at hand. They can take the costlier option when it is better, which the poor cannot. One example of this is durability. In some situations the more expensive option is long-lasting, and hence gives a longer term benefit.
- Education: The rich can invest in better quality and longer education for their kids, which the poor cannot afford.
- Health: The rich can afford a healthier lifestyle – food, environment, medical facilities – which results in better health and lifespan leading to higher productivity.
- Information: The rich have access to better information, which is a big advantage in any endeavour in today’s world.
- Adversity: Having money in the bank enables one to tide over a difficult situation – loss of employment, medical emergency, etc. Such situations have a bigger negative effect on the poor, who find it all the more difficult to recover and get back to their earlier standard of living.