Hubris

The rich get richer.

Data supports it. In the past three decades, the share of U.S. wealth held by the top 1% has gone from 24% to 32%. Like most cliches, “the rich get richer” became a cliche because it’s true… of money, and power. The powerful tend to aggregate more power, incumbents get reelected 90% of the time.

 
It makes sense. Money buys you power and influence, which begets more money, which buys more power and influence. This is the basis of capital accumulation and wealth creation — a virtuous upward cycle. It’s also the reason we (should) have progressive taxes and regulation: to prevent the natural order of economics from doing its thing, making rich people richer and poor people poorer.

 
What makes less sense? Why does one person or firm not have all the power? Why don’t a few families control all the wealth, one or two governments control the globe? Why isn’t there a president of Earth? As much as it seems that power and wealth are centralized, the world’s richest man owns just 0.04% of the world’s net worth.

 
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