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Do the rich really keep getting richer? I would assume that as you have more money you don't just have more opportunity but also more competition. There are lot
by erikb 10y ago
Do the rich really keep getting richer? I would assume that as you have more money you don't just have more opportunity but also more competition. There are lots of people who try to take your money one way or another without any return.
- mixmax 10y ago>Do the rich really keep getting richer? Yes, that's basically the findings of Thomas Pikkety. His tome "Capital in the 21st century" goes through great lengths to find and explain the numbers behind the finding.
- erikb 10y agoDone now with Pikkety. Well, he summarizes it very simplified. I think his model doesn't necessarily mean that the person who was rich 10 years ago is richer now. It still works out if for example each year a start-up of the same size has a 5% bigger exit than the year before, but 10 years later the founder of the first exist is broke and homeless already. What I mean is it doesn't, afaik, consider fluctuation in each group. Also many economists criticise that money is only measurment of wealth, and some are quite hard to represent in $.