Why Poor is Poor and Rich is Rich?

Poor and Rich are differentiated by the amount of funds they have. The Rich has ample funds, whereas the poor deal with scarcity. The universal principle of economy is that the amount invested in any project provides returns in proportion. The Rich can invest a considerable amount, giving significant returns, making the rich stay rich and more prosperous. Poor is unable to do so as he does not have funds to invest anywhere, and naturally, there are no returns of funds to him from anywhere, making him stay poor or become poorer, as he does not have any savings to bring him out of poverty.

Rich people have a steady turnover of funds. They have money-yielding projects from many generations. Their invested money in these projects brings them more money that is reinvested in the projects or used in starting new projects. This, in turn, adds to the returns, and the rich become more prosperous with a higher reserve of funds. Rich people know how to utilise and invest their funds in profitable projects. They have the financial resources to take risks. The capital reserve of the rich people runs the commerce and economy of the business world.

But people with low incomes need more funds to do something. They may be working in low-paying jobs or may be jobless. As a result, they need to have a regular and sufficient amount of money and savings. Multiple factors add woes to their sorrow. The cost of living keeps constantly rising, and their low-paying jobs cannot match their minimum required expenses. It makes them poorer. Low-paying jobs or no jobs result in nil savings.

On the other hand, they may have to borrow money from different sources that drag them into a pool of debts. These debts keep rising because of compounding interest payable on the obligations, and people experiencing poverty lose whatever property or assets he has to pay the debt. People with low incomes become paupers in this process.

The poor generation always tries to try things that can bring them money. Any work to earn money requires a minimum amount of money they do not have. They do not dare to ask for loans as nobody would give them any money as a loan since their repaying capacity could be more trustworthy. These people also are reluctant to learn any skill that can fetch them money. This also requires a certain amount of money. All these keep them devoid of any source of earning that can improve their living standards, and they remain poor as before.

Poor people need to gain knowledge or understanding of utilising or rotating money since they do not have any money to do so. They also can not recognise opportunities to earn money. They cannot also use options if it comes on their way. In short, lack of knowledge, funds, education, or training in any skills keeps them poor as they were long back.

These are why the rich remain rich, and the poor remain poor.


  • Prof. Pinaki Munshi

    Prof. Pinaki Munshi is a retired Associate Professor from a prestigious management college in Indore. He holds a Masters degrees in Life Science from Jawaharlal Nehru University, English literature from Guru Ghasidas University, Bilaspur, and Business Management from Sriram School of Business Economics. His passion for writing led to the publication of his blogs in multiple countries. With a deep love for language, Prof. Pinaki Munshi continues to pursue his writing endeavors even after retirement.

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