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Have you ever wondered why the rich get richer and the poor get poorer

Watson

Moderator
It is not news that the gap between the rich and the poor is widening across the world, but what is behind this trend? why are the poor increasing among us and the rich is getting more richer? you may ask

A study by the World Bank Group provides hits answers, The study found that countries, where people are more developed with financial literacy, are more likely to proved richer people, while the opposite applies to other countries to have a wider income gap between the rich and the poor

Another factor is that income inequality has been a problem in the United States for many years. The rich are getting richer, and the poor are getting poorer, this not just happening across the U.S but also visible across other countries where income inequality and bad government policies that favor only the elites, politicians, and government classes, while the masses are left aside to struggle in poverty

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There are many reasons for this, the fact that the rich people keep getting richer and the poor are getting mad poorer is an alarm for concern as this keep recycling for decades

Tax System
Also one of the main reasons in some countries is the tax system. The tax system is designed to help the rich get richer and to help the poor get poorer.

Income inequality has been on the rise in America for the past few decades. While the rich are getting richer, the poor are getting poorer. This trend is particularly noticeable not just across the United States, but also across the third world countries where millions of people are dying of starvation, hunger, and poverty-related diseases

Another reason why the rich are getting richer and the poor are getting poor is the leave of financial literacy among both parties

Financial Literacy
To make money in this 21 century is advisable that one is well informed and should be on the alert part to always lookout for opportunities to make more money and seize the moment increasing one's income, leveraging multiple streams of income

So, another reason why the rich are getting richer is their ability to pay attention to financial literacy, I know the question going on in your heart is, What is financial literacy, so let me take a few minutes of your time and through some light on Financial literacy

Understanding Financial literacy, one reason why the rich keep getting richer and the poor keep getting poorer:
In the United States alone, it is estimated that more than two-thirds of adults lack basic financial literacy skills, which can lead to disastrous consequences. Poor money management can result in everything from missed bill payments to high-interest debt and even bankruptcy.

The rich keep getting richer because they understand financial literacy and best knows how to apply it in their day to day living activities and business

One of the best ways to become more financially literate is to take a course or read up on the subject, there are lots of lot videos course, ebook and articles available on the said topic 'Financial Literacy' reading such information can easily change one status from poor to rich

The Federal Reserve has a number of helpful resources also, as does the National Endowment for Financial Education, while you can find millions of such across the internet, youtube videos, and more, financial literacy contribute greatly to making more rich people richer, while financial illiteracy also contributes in making more poor people poorer, hope you get the point?


Also, financial literacy is the ability to manage one's own financial resources is a key life skill that too many people lack. According to a study by the FINRA Investor Education Foundation, nearly two-thirds of American adults are financially illiterate.

This means they do not have the basic knowledge needed to make sound financial decisions, this problem is not limited to the people in the United States, but almost all over the world and is more severe across the third world countries

There are many reasons why this is the case. One reason is that financial literacy is not taught in schools, reading books and videos course on financial literacy can only help when you in person read and applies the lesson by putting your knowledge of financial literacy into practice

In our society, money is not a necessary evil. We need it to buy the things we want and to live a comfortable life, but money is best when will learn the best ways to manage our finances, invest more when compared to spending more

However, very few people know how to manage their money properly. This is why financial literacy is so important. If you can't manage your money, you will always be among the poorer, you will be in debt and never be able to achieve your goals or leave the poverty status

So is very very important that you know and apply smart ways to manage your money, invest your resources, learn more about financial literacy and never depart from practicing active learning and investing more of your money in real properties

While one of the biggest problems with financial literacy is that it's not taught in school. Laugh out loud, yes school mostly teach you how to spend money. not basically how to make and reinvest money

Financial illiteracy More Reason Behind The Poor Getting More Poorer
Only in the United States, it is estimated that two-thirds of adults are financially illiterate, that is in the United States alone, and higher in percentage across the world.

A lot of poor people are poor today because most of them lack financial literacy, which means they do not have the basic knowledge to manage their money, invest wisely and make sound financial decisions.

This lack of knowledge can lead to a lot of problems, such as getting into debt, not investing at the right time, eating all income, not saving for retirement, and not having enough money to cover expenses.

One of the reasons why so many people are financially illiterate is that schools do not teach children about money management in practice, but only exist around the school environment in theory.

In the United States, it is said that we are a nation of consumers. We are always spending and buying. And when it comes to our finances, many of us are sorely uneducated. This can lead to some serious financial trouble. Financial illiteracy is a real issue in this country and all over the world, and it's one that needs to be addressed globally for the benefit of all humanity

Remember: One reason why financial illiteracy is so rampant is that we don't teach it in schools in practice, but just in theory, so when most students graduate and leave the school they find it hard to cope, manage their finances

A recent study by the FINRA Investor Education Foundation found that a shocking 56% of Americans are financially illiterate. This means that more than half of the population doesn't understand basic financial concepts such as compound interest, inflation, and risk diversification.

The study also found that people who are financially illiterate are more likely to make poor financial decisions, which can lead to bankruptcy, foreclosure, and other serious money problems, thereby keeping most of them in poverty

So when next you are asked, why are the rich getting richer and the poor getting poorer, just refer to this thread for a quick answer and remember, Poverty is a crime, by every mean legit necessary, work hard and smarter to be among the rich getting more richer

From Mbonu here live at world forum, wishing you all the best

Hope this answer behind why the rich keep getting richer and the poor keep getting poorer is well explained and answers all your questions about the said topic?

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