It's very true that all over the world we will find this same scenario, where rich become more rich day by day and poor become poorer.
I believe there are three thing effectively playing in this cycle:
You will get to notice how rich people innovate different paths to multiply their wealth. They work effortlessly to accumulate more resources and you can say that, money get one of thier addiction.
The most important thing is unfair and unequal social structure. Rich people get more enefits and opportunity to be in the money game. Poor can not fit in this no matter how hard they try. All the market system, economic structure and wealth distribution works weel for the rich people. So accumulating more by using this is a easy way for them. And they become richer by this day by day.
On the other hand, you will find poor people more depends on their fate and less work to change that. But if they try to change thing and work hard, it is true that their path is not a smooth one. They have to go through so many struggle that they can not find a way to get more money. Rather in this way lost all of their resources.
But I think this is our socio-economic structure which is more responsible to run the rules for the rich people. Poor people get less benefits, less share of their money and get less resources to improve them. Rich people get all the benefits and opportunity to get more richer day by day.
Thanks for a great question. Will love answering this one.
The difference between rich and poor besides money is the network. Rich people have access too a whole different opportunity set as compared to poor people. The rich, after spending money on goods required to sustain life, have ample left to deploy in investable opportunities that poor people will never have. If you look at venture capital funds, hedge funds or private wealth managers, or tax consultants, then you know their services to save money or tax and invest are quite different than the poor. Even in terms of education, rich people have access to better schools. Second is the psychology. When one is poor, they dont have time to think about growing their wealth. They are too busy making ends meet and saving for old age. The rich have so much that they have no such worries.
And money attracts money. Once you can invest more, you can have more. Lastly, rich also occupy powerful positions in govt or companies and therefore decision making will always favour the rich. For example, a cash surplus company will look at share buybacks and dividends to reward rich shareholders as opposed to increasing wages.
I think it goes back to the tortoise and the hare fable. Only the rich are no so stupid to fall asleep and allow the slow poor to catch up.
We saw it with Steemit. Those who had the money and the contacts to buy plenty os Steem when this started had the upper hand. The platform is in theory a democratic environment where anyone can become a whale but if you are already a whale from the get-go, no tiny fish will ever be a competitor.
Rich people, especailly those who are born into rich families, have the know-how, the contacts, and the motivation to do what must be done when it must be done. That allows them to constantly invest and re-invest their money so that even if one business goes down, their fortune does no suffer.
The average Joe will always be at risk of one failure. One business gone wrong may send them back to nothing in debt and probably in legal problems. True, some rich people started from scratch, but their success stories are in the minority among thousands of failure stories.
Rich people have the means to hire the right people to do the work of a thousand. They do not have to worry for mundane things that may consume the time of someone who is struggling to get ahead in the game.
Rich people can receive favors without having to touch a cent of their money. Just with a promise to return the favor, they can achieve things that would cost a fortune to a nobody.
We see it in Venezuela, how most people are below the poverty line now, but those who were already rich when Chavez started 20 years ago are even richer now. They found ways to adapt to whatever pervertion was done to our economy and no matter how expensive things are for the average person,their business will always be a step ahead and they will always have the resources to maintain their standard of living and several investments (home or abroad) providing constant refilling for their treasure.
Because capitalism is orchestrated in this way, there is a saying in my country (I guess it must be global) that says "money attracts more money".
This has several ways of seeing, in general who has enough money to start a business or entrepreneurship is made easier so you can get more opportunities faster than another with little money started the same company or entrepreneurship .
I do not think it has to do with the efforts made, but with the resources that are counted, it is not the same for a young man who has a home, food, heating and conveniences to heat the school and makes a university career, to one where The economic reality of your family does not have the same resources, it is likely that the first you have more possibilities and opportunities.
When we all have the same opportunities as the rest, the most talented will be highlighted, while the one with more resources will have better possibilities and that is what happens with the money, so the gap is getting bigger, not for nothing, 5% of the world population has more money than the remaining 95%.