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I disagree. A threshold amount of wealth makes it easier to make more, sure. But IMO that threshold is low (i.e. enough to cover the basics of life). Rich peopl
by cbeach 14y ago
I disagree. A threshold amount of wealth makes it easier to make more, sure. But IMO that threshold is low (i.e. enough to cover the basics of life). Rich people can lose wealth far faster, and far more easily than poor, trust me. The difference is that people who are capable of becoming wealthy are generally able to make more (through sensibly investing their cash and working hard in good jobs)
- saraid216 14y ago> Rich people can lose wealth far faster, and far more easily than poor, trust me. I don't know you, so I can't; can you provide numbers, or at least an argument with some intuitive strength, rather than just asserting it?
- vannevar 14y agoRich people can lose wealth far faster, and far more easily than poor, trust me. It is a tautology to say that you can lose more money the more money you have, because anyone (rich or poor) can simply choose to throw it away. That doesn't change the mathematical fact that interest compounds and that more wealth translates into more income in our economic system.
- lutusp 14y agoComplete agreement. I've been writing about the mathematics behind a well-known feedback effect in which ... get ready for a cliche ... the rich get richer and the poorer get poorer. Simply put, and as you point out, it's caused by compound interest: http://arachnoid.com/wrong/index.html#Economics http://arachnoid.com/wrong/index.html#Economics