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Ask HN: Why do the rich get even more richer?
In your opinion, why do the rich -- I mean born rich -- get a good change to get even more wealthier than most? While the poor struggle most of his life?
- clone1018 15y agoBecause you have to spend money to make money, and the rich have more money.
- steventruong 15y agoThis is not true. Money helps but it's not a necessity to build wealth these days.
- deleted 15y ago[deleted]
- motxilo 15y agoNot the only factor, but compound interest favors bigger over smaller amounts of money.
- byoung2 15y agoCompound interest favors time more than the amount. People who are wealthy enough to pass money from one generation to the next benefit from having that interest compound over several generations instead of one lifetime.
- stonemetal 15y agoPassive income, if you are rich you can pay others to use your money to make money for you. If you aren't rich they don't make enough on your meager savings to cover their costs. Risk ability, if you are rich you can afford to take risks. The poor are one little loss away from the homeless shelter. Learning heritage, the wealthy teach their kids how to make money. The poor teach their kids to toil. Even more than hows they teach shoulds. In poor circles you hear things like an honest days work(which almost always refers to manual labor), etc.
- macco 15y agoIt's quite simple: the growth of interest is exponential. That means the growth of the wealth of rich people accellerates!