Why is the rich getting richer?
Ability to invest more and lose relatively less One of the reasons why the rich get richer is that they have more opportunities to invest their money in assets that generate higher returns, such as stocks. Stocks tend to perform better than housing, which is the main asset for most people. By investing in stocks, the rich can increase their wealth faster and more easily. This is an example of how privilege works: having more wealth gives you more access to more wealth. This idea of privilege has become more controversial in the context of the COVID-19 pandemic, which has worsened inequality in many ways. A recent paper by economists from the IMF and other institutions supports this idea. The paper shows that wealthier people are more likely to earn higher returns on their investments than less wealthy people. It also shows that the children of wealthy people are likely to inherit their wealth, but not necessarily their ability to make high returns on investments. The richer you are,
