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by exassaty828 on May 25th, 2005

exassaty828

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

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  • by Jack Scotty on May 26th, 2005

    Jack Scotty

    Primarily the rich have the resources to invest their money and create sources of income without actually having to work. They can invest a large sum of money into some sort of investment fund and live on the interest. Because they aren't tied down to a job or burdened with some of the struggles and problems associated with being poor they have the freedom of thinking of new ways to make more money. They have the time and money to devote to developing a business idea. They have the ability to try something new without the risk of their life being impacted by financial failure of the new idea.

    The poor man often has to "juggle" his bills and money in order to make ends meet always leaving him a few steps behind where he wants to be in life financially. If his car breaks down he will have to spend half of his rent money to get his car fixed so that he can get back and forth to work. By the time he can get enough money together to pay his rent he will probably have to pay late fees and other penalties for being late. After paying all of his bills, he might have $20 left over at the end of the week to purchase his daily essentials (food, soap, toiletries, etc.) and because he only has $20, he will have to buy it in smaller sizes and quantities until he can get to the next pay period. Smaller sizes and quantities are more affordable, however, more expensive in the long run. For the poor, its a vicious cycle where they are always in the state of falling behind every time they get ahead.

    I think that its also a state of mind. Its very common to hear stories of poor people who win the lottery and get rich overnight are back to being poor a few months later. Likewise there are some rich folks, like Trump, who manage to get back on top everytime they lose everything.

    Comments

    • Excellent.

      Jodie44

      by Jodie44 on June 1st, 2005

    • A capitalist simplistic take on microeconomics

      steelhamster@aol.com

      by steelhamster@aol.com on December 22nd, 2005

    • excellent summery to fact

      Zenith

      by Zenith on January 3rd, 2006

    • This is true; however, if you're good at writing, writing a novel, if it's successful is a good way to get rich.

      Answers101

      by Answers101 on March 15th, 2006

    • Good explanation.All those lottery winners who lose it all had no money skills to begin with, it's to be expected.

      MyKinKStar

      by MyKinKStar on April 9th, 2006

    • yup, sort of like the poor in spirit being told to just "get over it", "forgive and move on", "you just have to think positive", "quit dwelling on the negative", "just think it and all will be right", "you think negative and you'll attract the negative", "you sow what you reap", etc, etc, etc, whether poor in spirit or in the flesh ...

      malavase

      by malavase on January 31st, 2010

    • lottory winners do not represent the average poor person. they represent the poor people who are stupid enough to play lottory. the movie "the persuit of happiness" was based on a true story. that man was a freaking FINANCIAL GENIOUS. he was not homeless because of his inability... he was homeless because life had not permitted him to succeed. it took both his briliance and a change in luck for him to become successful. someone who does not sabotage themselves should NEVER find themselves homeless due to bad luck in america... the fact that they can proves america is no longer great.

      TAPriceCTR s son is wearing his COAT

      by TAPriceCTR s son is wearing his COAT on November 23rd, 2010

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