Wealth inequality is a big problem in the world today. Currency, assets, and wealth are in the hands of a minority of people in the world. This causes suffering for those who don't have wealth in order to access health care, resources, and ways to thrive in life.
Wealth inequality is a global issue that affects both developed and developing countries. The gap between the rich and the poor is increasing, and this trend is expected to continue.
Let's explore the reasons why the rich get richer, why the poor get poorer, what someone without wealth can do to accumulate wealth, why wealth inequality is a problem, and what can be done to address it.
Why the rich get richer
One of the primary reasons why the rich get richer is that they have access to more resources and opportunities. Wealthy individuals can leverage their resources to invest in businesses and assets that generate more income. They can also afford to hire financial advisors who can help them make better investment decisions.
Another reason why the rich get richer is that they are often better educated and have more skills that are in demand. They can leverage their skills to earn higher salaries and build wealth through their careers.
For example, say I have $10 million invested in JEPI, a stock ETF that pays a dividend of about 10%. That's about 185,000 shares of the stock. It pays about 40 cents to 60 cents a share per month. One shares costs about $54. Conservatively, that's about $74,000 per month without having to do any work. That's more than the median YEARLY salary in the U.S. Those who are truly wealthy have this kind of access to wealth and their money working for them.
Why the poor get poorer
The poor get poorer for several reasons, including a lack of access to resources and opportunities. Many individuals living in poverty lack the financial resources to invest in assets that generate wealth. They also often lack access to education and training that could help them acquire the skills they need to earn higher salaries.
In addition, the poor often face systemic barriers that prevent them from achieving economic mobility. These barriers can include discrimination based on race, gender, and socioeconomic status, as well as a lack of access to affordable healthcare and housing.
The poor spend all their money with none left to buy assets that will work for them...
What someone without wealth can do to get wealth
While the barriers to wealth accumulation can be significant for those without resources, there are still steps that individuals can take to build wealth. These include:
- Investing in education and training to acquire valuable skills and knowledge
- Starting a business or investing in assets that generate passive income
- Living below your means and saving aggressively
- Seeking out mentorship and guidance from individuals who have successfully built wealth
- Participating in financial literacy programs to develop a better understanding of personal finance and investing
What is bad about wealth inequality
Wealth inequality can have several negative consequences, including:
- Reduced economic mobility, as individuals born into poverty are less likely to achieve financial success
- Increased social unrest and political instability, as those living in poverty may become disenfranchised and resentful of the wealthy
- Decreased consumer spending, as those with lower incomes have less money to spend, which can negatively impact businesses and the economy as a whole
- A lack of diversity and inclusion in certain industries, as those from lower-income backgrounds may not have the resources or opportunities to pursue certain careers
What can be done overall to solve wealth inequality
Solving wealth inequality is a complex issue that requires a multifaceted approach. Some potential solutions include:
- Investing in education and training to provide individuals with the skills they need to earn higher salaries and build wealth
- Increasing access to affordable healthcare and housing to help individuals living in poverty overcome systemic barriers
- Implementing progressive taxation policies that require the wealthy to pay more in taxes
- Encouraging businesses to pay living wages and provide benefits to their employees
- Supporting initiatives that promote diversity and inclusion in the workplace and provide resources and opportunities to individuals from underprivileged backgrounds.
Wealth inequality is a pervasive issue that affects individuals and communities worldwide. While there are no easy solutions, taking steps to address the root causes of wealth inequality can help create a more equitable and just society.
By investing in education, providing access to resources and opportunities, and promoting policies that support economic mobility, we can work to reduce wealth inequality and create a more prosperous future for all.
I think it's hard work for someone without wealth to get it, but it can be done with time, patience, and educating ones self.
Online writer since 2008. I enjoy writing and have written nearly a thousand tech related articles about electric vehicles, software, tech companies, hardware, gaming, tech related products, and company developments in tech.