Universal Translator

Thursday, October 27, 2011

The Richer Get Even Richer

Following up on my Wealth Condensation post from last month, Chris Douglas has an interesting column up today titled Why the Rich Get Richer that I recommend checking out. Douglas provides a fairly clear and commonsense hypothetical situation that does a good job demonstrating how you can be unduly disadvantaged against competitors who already control a large amount of existing capital -- even though you may far outclass those competitors in intelligence, skill, work ethic and talent.

As a result, those who already own a great deal of an economy's wealth tend to accrue even greater and greater amounts of wealth over time -- a positive feedback cycle, with all the attendant horrors such cycles bring to any dynamic system.

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