Why are the rich getting richer and the poor getting poorer? Inflation?

[ZzzImAsleep]

Is it inflation that is causing the gap between classes or is it a loss of jobs due to them being shipped overseas/being replaced by machines? Or is it a combination of these things? Or neither?

[Kludge]

Inflation tends to assist the debtors. Those who are most in debt will likely see the greatest increase in their adjusted net worth.


The opposite tends to apply with deflation, as those with money will see the greatest returns as credit is difficult to receive and when it is, is at high rates.


ARE the rich getting richer?

[nbhadja]

The phrase "rich getting richer" is misleading. Only the rare extremely rich get richer. Doctors and lawyers etc get poorer.

[Bman]

ARE the rich getting richer?

That would depend on the definition of rich. But, America certainly has the largest gap from Rich to everyone else in a single country. The only thing I find troubling about that fact is that the gap was also very large between haves and have nots leading up to the great depression.

[Kludge]

That would depend on the definition of rich. But, America certainly has the largest gap from Rich to everyone else in a single country. The only thing I find troubling about that fact is that the gap was also very large between haves and have nots leading up to the great depression.

I'm not one to keep up with statistics, but last I heard, the "Middle Class" is growing in %.

[paulitics]

I'm not one to keep up with statistics, but last I heard, the "Middle Class" is growing in %.
Yeah, I guess if this means a having a car, computer, HD TV with lots of debt and working overtime to pay it off, then yes. If this means an increase net worth, standard of living, then no. Have the average salary increaed or decreased with REAL inflation in the last 20 years? Common sense would suggest that it has not kept up with inflation.

[nbhadja]

I'm not one to keep up with statistics, but last I heard, the "Middle Class" is growing in %.

They are living an artificial life and its gonna crash big time soon. They are declining.

[Kludge]

Yeah, I guess if this means a having a car, computer, HD TV with lots of debt and working overtime to pay it off, then yes. If this means an increase net worth, standard of living, then no. Have the average salary increaed or decreased with REAL inflation in the last 20 years? Common sense would suggest that it has not kept up with inflation.

That doesn't necessarily suggest a widening gap between the "Haves" and "Have-Nots" and possibly suggests a general decline in the true wealth of the nation or even of the world.

[PatriotLegion]

Different area economies (IE New York Metro area). I live on Long Island and while most of the country you are considered "well off" upper middle class if you are making 100K+ a year but on Long Island you are struggling. With utilities, property taxes and overall QOL people are struggling making 100K+ on the Island. The smart one's left 5 years ago to the Carolina's and Florida and the real smart one's left 10 years ago... Living wage on Long Island is 65K to at the minimum to rent a decent apartment (most apartments and rentals are mark "Luxury" so they can smack you with another $200-500 more a month). The jobs on the Island that any Joe can get is $10-$12 an hour and that just doesn't cut it on the Island. The biggest problem on Long Island is TAXES!!!! School, police, fire, roads, etc!!! I want a wave to engulf this stupid island back into a sand bar!!!!!!! :mad::mad::mad:

Sorry for the rant just my $0.02.

[Bossobass]

There are many reasons that the rich get richer.

1) They understand the inflationary monetary policies and use this knowledge to grow net worth.
2) They have influence to get regulations in place to limit competition.
3) They have influence to have Bills passed for tax breaks to them and no one else.
4) They also have Bills passed that hand them tax free taxpayer funded cash.
5) They have influence over the federal budget to see to it, for one example, that the SBA budget is slashed to nothing, while the military budget grows to gargantuan size.
6) They have influence to get wars started that benefit their companies.
7) They have inside information that takes the risk out of investing. Those who set monetary policy in secret meetings know what the money supply and interest rates will be in the future.
8) They're rich. You gotta have it to make it.

The list is longer, but you get the point.

Bosso

[hillbilly123069]

George wants to take the money the poor has and give it to the rich in the guise of a bailout,rescue or whatever they are calling it now.Have you ever read any books on nazi Germany?They're is a lot of similarities in then and now as far as government influence on the people I'm seeing.

[dannno]

There are many reasons that the rich get richer.

1) They understand the inflationary monetary policies and use this knowledge to grow net worth.
2) They have influence to get regulations in place to limit competition.
3) They have influence to have Bills passed for tax breaks to them and no one else.
4) They also have Bills passed that hand them tax free taxpayer funded cash.
5) They have influence over the federal budget to see to it, for one example, that the SBA budget is slashed to nothing, while the military budget grows to gargantuan size.
6) They have influence to get wars started that benefit their companies.
7) They have inside information that takes the risk out of investing. Those who set monetary policy in secret meetings know what the money supply and interest rates will be in the future.
8) They're rich. You gotta have it to make it.

The list is longer, but you get the point.

Bosso


This is pretty much it.

With the Fed comes the ability for the government to spend well beyond it's means. With that comes power and manipulation. The inflation wipes out the middle class and the poor.


The idea behind the gold standard was that people actually owned real wealth, and all this wealth was spread out throughout the country. Now our monetary policy is based on debt, and so the debt is spread around throughout the country.

[cswake]

Let me reiterate that the middle class includes upper middle class, such as doctors and lawyers. My brother's boss was making 50k as a lawyer coming out of an okay program in the *1970s*, and all his friends the same. This particular guy bought a new camaro, in cash, the same year he graduated while putting a 20% down-payment on a house.

The wealthy are the ones who do not have to work and can just let their capital work for them.