The rich get richer and the poor get poorer explained

"The rich get richer and the poor get poorer" is an aphorism attributed to Percy Bysshe Shelley. In A Defence of Poetry (1821, not published until 1840) Shelley remarked that the promoters of utility had exemplified the saying, "To him that hath, more shall be given; and from him that hath not, the little that he hath shall be taken away. The rich have become richer, and the poor have become poorer; and the vessel of the State is driven between the Scylla and Charybdis of anarchy and despotism."[1] It describes a positive feedback loop (a corresponding negative feedback loop would be e.g. progressive tax).

"To him that hath" etc. is a reference to Matthew 25:29 (the parable of the talents, see also Matthew effect). The aphorism is commonly evoked, with variations in wording, as a synopsis of the effect of free market capitalism producing excessive inequality.

Predecessors

Andrew Jackson, the seventh President of the U.S. (1829–1837), in his 1832 bank veto, said that "when the laws undertake... to make the rich richer and the potent more powerful, the humble members of society... have a right to complain of the injustice to their Government."[2] [3] The phrase also has connections to Martial's epigrams. In one of his epigrams, he states, "You will always be poor if you are poor, Aemilianus. Nowadays wealth is given only to the rich."[4]

The phrase also resembles two Bible verses from the Gospel of Matthew:

"Ain't We Got Fun"

The phrase was popularized in 1921 in the wildly successful song "Ain't We Got Fun?", and the phrase is sometimes attributed to the song's lyricists, Gus Kahn and Raymond B. Egan.[5] [6] The line is sometimes mistakenly attributed to F. Scott Fitzgerald. It appears in The Great Gatsby, as "the rich get richer and the poor get - children!" The character Gatsby orders the character Klipspringer, sitting at the piano, "Don't talk so much, old sport... Play!" and Klipspringer breaks into the Whiting, Kahn and Egan song.[7]

In economics

Thomas Piketty's book Capital in the Twenty-First Century (2014) presents a body of empirical data spanning several hundred years that supports his central thesis that the owners of capital accumulate wealth more quickly than those who provide labour, a phenomenon widely described with the term "the rich-get-richer".[8]

In modern politics

In the United States, the phrase has been used frequently to describe socioeconomic trends under the Ronald Reagan and George H. W. Bush presidencies,[9] [10] [11] and in the United Kingdom to refer to the Thatcher era.[12] In 1990, Thatcher responded to a question posed in the House of Commons by the Liberal Democrat MP Simon Hughes about wealth inequality in the UK by saying "he would rather that the poor were poorer, provided that the rich were less rich. ... What a policy. Yes, he would rather have the poor poorer, provided that the rich were less rich. That is the Liberal policy." It has also been used in the UK to refer to the 2010–2015 coalition and 2015–2016 governments led by David Cameron.[13]

Other uses

In statistics, the phrase "the rich get richer" is often used as an informal description of the behavior of Chinese restaurant processes and other preferential attachment processes, where the probability of the next outcome in a series taking on a particular value is proportional to the number of outcomes already having that particular value. This is useful for modeling many real-world processes that are akin to "popularity contests", where the popularity of a particular choice causes new participants to adopt the same choice (which can lead to the outsized influence of the first few participants).

Product recommendations and information about past purchases have been shown to influence consumers choices significantly whether it is for music, movie, book, technological, and other type of products. Social influence often induces a rich-get-richer phenomenon (Matthew effect) where popular products tend to become even more popular.[14]

See also

Further reading

Notes and References

  1. Book: Shelley, Percy Bysshe . A Defence of Poetry (from the Harvard Classics: English Essays: Sidney to Macaulay . Bartleby.com . 1909–14.
  2. Book: Watson, Harry L. . Andrew Jackson v. Henry Clay: Democracy and Development in Antebellum America . Palgrave Macmillan . 1998 . 0-312-17772-0.
  3. Book: Jackson, Andrew . A Compilation of the Messages and Papers of the Presidents, Vol. 2, Part 3, Andrew Jackson, 1st term . Richardson . James D. . VETO MESSAGE. . . 2 August 2024 . 3 August 2024 . https://web.archive.org/web/20240803174607/https://gutenberg.org/ebooks/10858 . live .
  4. Web site: Henderson . Jeffrey . Martial Book V: Epigram 84 . August 8, 2024 . Loeb Classical Library . en.
  5. Web site: Ain't We Got Fun . 2006-08-11 . 7 March 2016 . https://web.archive.org/web/20160307114828/http://everything2.net/index.pl?node_id=1101156 . live .
  6. Web site: Ain't We Got Fun . https://web.archive.org/web/20041210204617/http://www.geocities.com/dferg5493/aintwegotfun.htm . 2004-12-10 . 2006-08-11 . Don Ferguson.
  7. Book: Fitzgerald, F. Scott . The Great Gatsby . Oxford University Press . 1998 . 0-19-283269-7 . 76 . 1921 . 31 March 2023 . 24 June 2023 . https://web.archive.org/web/20230624145937/https://books.google.com/books?id=ZMQv026FgT8C&pg=PA76 . live .
  8. Solow . Robert M. . 23 April 2014 . Thomas Piketty is Right . The New Republic . 12 March 2017 . 29 September 2017 . https://web.archive.org/web/20170929105730/https://newrepublic.com/article/117429/capital-twenty-first-century-thomas-piketty-reviewed . live .
  9. Web site: Galbraith . James K. . James K. Galbraith . June 8, 2004 . The rich got richer . https://web.archive.org/web/20070929143539/http://archive.salon.com/opinion/feature/2004/06/08/reaganomics/index_np.html . 2007-09-29 . Salon.
  10. Web site: Wolf . Edward N. . 1993 . The rich get increasingly richer: Latest data on household wealth during the 1980s . http://webarchive.loc.gov/all/20041023043625/http://www.epinet.org/content.cfm/paycheck_wages_summary_wages . 2004-10-23 . Economic Policy Institute Briefing Paper . 36.
  11. Web site: Reynolds . Alan . Alan Reynolds (economist) . August 31, 1992 . Upstarts and Downstarts (The Real Reagan Record) . . 12 August 2006 . 8 September 2006 . https://web.archive.org/web/20060908042607/http://www.nationalreview.com/reagan/reynolds200406101357.asp . live .
  12. News: Nunns . Alex . April 2013 . Dispelling the Thatcher myths . 2 May 2016 . Red Pepper . It's said that Thatcher made the British people richer. She didn't. ... The rich got richer; the poor got poorer. . 7 May 2016 . https://web.archive.org/web/20160507153214/http://www.redpepper.org.uk/dispelling-the-thatcher-myths/ . live .
  13. Coalition:

    2015–present:

  14. Altszyler, E . Berbeglia, F. . Berbeglia, G. . Van Hentenryck, P. . 2017 . Transient dynamics in trial-offer markets with social influence: Trade-offs between appeal and quality. . PLOS ONE . 12 . 7 . e0180040 . 2017PLoSO..1280040A . 10.1371/journal.pone.0180040 . 5528888 . 28746334 . free.

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