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Matthew effect in full flight. [0] https://en.wikipedia.org/wiki/Matthew_effect https://en.wikipedia.org/wiki/Matthew_effect

• sytelus 7y ago
  Capitalism is itself a pure unadulterated implementation of Matthew's effect. If you have capital of $X, you automatically are entitled increase in that $X. If you have $0 then you work day after day to find your share of global wealth keeps dipping. This is typically gets sold as "risk vs reward" system while the fact is that if you had invested in S&P500, your investment is practically protected by the US Army and its arsenal of nuclear weapons. The risk of your $X reducing to $0 over any conceivable long term is practically nonexistant. You simply see your wealth grow unbounded without you doing anything at all. You can count of US government to get you out of ditch even though the vast majority of the population has no investments in S&P500. Sure, folks screw up as always but that's the capitalism in essence and it gets better as $X gets bigger.
  • SpicyLemonZest 7y ago
    Your premise just isn't true. A significant majority of Americans have investments in the stock market.
    • quickthrowman 7y ago
      While that may be true, 1% of Americans hold 50% of total US equities. The wealth gap is wider than it has been in 130 years, that is not good.