Why The Rich Are Getting Richer And The Poor Becomes Poorer

There will always be a hierarchy in terms of the amount of money a person has whether they are rich or poor. Whether you are someone in the middle class, at bottom or the top will have a different perspective when it comes to your purchasing power.

At the same time, we always ask ourselves what it feels like to not worry about how much money we got left in our bank account when making a purchase like certain individuals. Why does the rich remain the same or keep on getting richer? What are the advantages that they have that we basically don't?

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Despite some of us trying to be frugal each day, it is still very hard to become rich. There is one theory that can simply answer all these doubts and questions in a simple manner so that everyone can understand.

Different Perspective Theory on Rich and Poor

One of the common theories that have been used as a comparison for the unfairness of social money will be the Boots Theory of Socioeconomic Unfairness. This theory was originally taken from a fiction work by Terry Pratchett in his book called Men at Arms. The book was published in 1993.

In that novel, a character named Captain Samuel Vimes questions why there is a huge gap in the income capability of an individual that has a low income and those that spend lavishly. This matter has led to the comparison of the capability of a war officer to obtain the right shoe.

Captain Vimes believed that a capable soldier will be able to get a pair of shoes that is more expensive whereas the less fortunate will struggle to get shoes that are much cheaper but of higher quality. Captain Vimes also added that the more expensive shoe will last longer compared to the cheaper version.

This means that those with more money will only need to spend once in order to get the best shoes out there. For the poor soldier, despite the shoes costing way less, they will need to be replaced more often since they will wear off much sooner.

This process can occur repeatedly to the extent that the cost of obtaining the cheaper shoe will far exceed the superior shoes that have been bought by the rich soldier who does not even need to replace the shoes for so long.

You can definitely see the basis of this ideology?

Is It True That Cheaper will Be Much Cheaper In the Long Term?

This theory represents to the readers of one simple idea that may cause the less fortunate person to spend even more than they should in the end. Does this theory have its basis or slight truth to it?

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Well based on my personal experience buying shoes that are much cheaper will mean that the soles will need to be regularly replaced. This means that the shoe will need to be replaced after wearing them for 6 months.

But when I try to buy much more expensive shoes, it was surprisingly good and they can even last for 3 years until it wears out. Perhaps it is debatable but the reality is that the rich will not only be able to reduce the need of spending money but also can minimize the time needed to decide on what to buy.

The cost of going to the shopping complex can be reduced if we were wearing expensive shoes in comparison with cheaper shoes since you only need to go there a couple of times for the same purpose.

Applying This Theory To Your Daily Lives

Aside from just shoes, we can also use other examples like cars to make this theory much clearer. Someone who is poor will tend to buy second-hand cars compared to purchasing a brand-new one.

Despite the smaller price, at the same time, the person will also be liable to the risk of not knowing the state of the car except if they bought it from someone they trust. If luck is on their side, the car will be as expected and they would not have to spend big bucks to repair any damages to the car and this is only some aspect of it.

You would also need to look at the car's engine and its condition since if things go south, you might have to spend more than you can afford instead of buying a new car that can last much longer.

Cheap Does Not Mean It's Worth It

The main obstacle for the middle-class group is spending more than they should obtain the money firsthand. Not all who are unfortunate are willing to take out big cash in finding the best quality ones out there even though it will save them more money in the end.

Even the homeless will realize that there are more important things that they should use their money on rather than expensive things which closes the option to get something of high quality. That is why savings is the most crucial aspect of good financing but then again some people barely have enough to go by.

That is why sometimes it is good to bargain when it comes to getting things at the best affordable price to make sure that you put your money to really good use. We should all reflect on ourselves and find the best situation in which we can improve ourselves.

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You never know that some of your usual habits are eating up all your money and increasing your credit card debts.

Plan Your Purchase For The Long-Term Savings

The easiest example that you can improve will be your eating habits. Some people are willing to pay a premium so that they can eat at the best restaurant out there while some are willing to cook at home so that they can save even more.

Some people might question whether it is worth it to save money in order to go through all the troubles of preparing the food yourselves. When you are in a state of desperation, you would put your mind to it by analyzing the situation more openly.

If we were more open towards accepting our fate then sometimes being frugal will be very beneficial for us. Struggling and putting in an effort to get something more quality will be for your own good as what matters is it lasts longer.

Maybe soon enough you will realize that the reason the rich stays richer is that they rarely save too much when spending on something quality while the poor will constantly be in a loop of spending more in the long run despite spending a bit from the start.

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