The combined wealth of Nigeria’s five richest men - $29.9 billion - could end extreme poverty at a national level yet 5 million face hunger. More than 112 million people are living in poverty in Nigeria, yet the country’s richest man would have to spend $1 million a day for 42 years to exhaust his fortune.
source
We all have different opinions about the rich--the supposed 1%, most are negative for various reasons. There is always a conspiracy about how the 1% are trying to enslave the rest of the world. I don't believe so much in conspiracies. They are mostly geared towards triggering the masses and inciting fear and uncertainty, however, this is not a post about conspiracy theories. I am here to discuss why i think the rich keep getting richer.
The rich got richer through the recovery from the 2008 financial crisis. Between 1993 and 2015, the average family income grew by 25.7%. The top 1% of the population received 52% of that growth
source
Asides educational background, deregulations, globalisation, government policies, etc There is a simple explanation as to why the rich maintain and grow their wealth.
WEALTH = POWER = INFORMATION
This is a simple formula that guarantees the consistent generation of income for the rich. It is almost impossible to break this chain or utter their streams of income. Wealth often translates to economical power which in turns influences politics--policies. A typical example of how this plays out is the case of Aliko Dangote, The richest man in Africa and Nigeria. Most of the government policies favour his business. Currently, there is a land border closure in Nigeria--for security reasons, however, Dangote is allowed to trade along these routes. He also has a monopoly in certain sectors in the country and due to economics of scale cripples competition. Now there is virtually nothing anyone can do to disrupt his business significantly. Even a change in the political landscape of the country would only force him to adjust and given the size of his enterprise, he can afford to do so. The wealth gathered during his lifetime will be spread across generations.
Information. Having any semblances of power grants the supposed person unrestricted access to stupendous amount information unknown to the general public to which they can leverage on. This is the reality of the rich. They have inside knowledge; those with great ideas but not funding pitch them to the rich. Even when there a global recession the government is willing to support such businesses of the rich because they are seen to be crucial to the economy, unlike the retail store owner who needs his business to stay alive.
Income equality is one of the leading problems in the world currently. The government across the globe are enabling this income gap. Now, it is almost impossible to separate these cooperate institutions from the state. Some may argue that they are the state. I read Snowden book a couple of months back about how the government outsource intelligence work to some of these private company. It shows the power they wield and how hopeless the government are in scrutinising their activities.
ALTERNATIVES
This current financial system is designed to favour a few and it is almost impossible to break into. The best alternative is to create alternatives where people have a chance to play. I see crypto industry as one of such alternatives. It is untapped in so many ways and although the 1% are welcomed to join, those who have access to the right information can get a head start. The game-changer is information. You might not be wealth or have any political clout but you do have information and that is the most disruptive thing in the world today--information and access to the world (globalisation).
The rich can keep getting richer while the poor can get rich (at least). And unlike most people, i don't think taking their wealth away is any good. Address the system that made these people extremely rich at the expense of billions of people is paramount. The government has a role in determining wealth distribution and providing the less privileged with better opportunity. Investing in human capital is the best way to increase individual wealth and improve the labour force. I could only dream of a classless society but that is far-fetched.
These are my personal thoughts regarding income inequality.