The problem of wealth inequality and the growing gap between rich and poor people is a difficult one to debate. It is determined by the geography and the country's system. It is very frequent in Asian countries for rich individuals to get even richer while poor people get worse.
This is due to the ineffective system of wealth distribution in these countries. Officers of all types are frequently wealthy, and their earnings increase year after year, making them increasingly wealthier. This is due to the fact that people appointed as officers means they changed their wealth status. There is no such system to equalise the income rewards for various types of employees.
On the other hand, all those appointed at low class grades have a minimum wage and their salary increases are sluggish and not as significant as those of high grade officers. In my country, the employee advancement system is quite weird.
High grade officers receive a 20-25% increase in basic pay, whereas low grade officers receive only a 5-8% raise, which is insufficient to compete with high grade officers. This is an actual example of income discrepancies, which is one of the reasons why the rich are becoming richer while the poor are getting worse.
Another factor is wealth accumulation. Because wealthy people have enough money to invest and use their savings to supplement their income. It is obvious that when wealthy people use their savings for investing purposes, they will begin to generate additional income.
However, for the poor who do not have any savings to invest in order to produce more income. Instead, they are required for two meals every day. So, how can a poor person enhance their wealth status when they are barely meeting their monthly expenses? This is another reason why the rich get richer while the poor struggle.
In the same instance, wealthy people may afford to pay for their children's education while the poor cannot. Children from wealthy families will receive a good education and be qualified for higher-level positions. Rather, poor people will be assigned to any government school, where they will not receive a proper education as compared to wealthy people's children.
This is clear since people with a higher education have a better chance of filling high-level positions, which is another reason why the rich get richer and the poor get poorer.
Another cause is business or inheritance. Rich people can simply use their money to manage a better firm for an alternative income and pass on their wealth to future generations, whereas those in poverty cannot.
Rich people have more investing options in every industry. Let us use the basic yet important example of the Crypto market. Traders with large sums of money in their wallets will trade more effectively and profitably. A substantial sum of money will aid in the management of good deals and will never get you stuck.
However, traders with a limited quantity of money have fewer possibilities. They are more likely to become stuck in their trades, and their profit % is lower when compared to traders that have a huge quantity of money in their wallets. That is, people with more money will have more options.
This is an attempt on my part to explain why the rich are getting richer while the poor are struggling. I also explore the various causes for this, as well as the drawbacks. I hope you enjoy the post and find it educational. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.
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