Wealth accumulates from "summary" of The Haves and the Have-Nots by Branko Milanovic
The process of wealth accumulation is akin to a snowball rolling downhill, gathering more and more snow as it goes. In the realm of economics, this phenomenon is known as the "Matthew effect," named after the biblical passage that states, "For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath." This passage encapsulates the essence of wealth accumulation - the rich get richer, while the poor get poorer. At its core, wealth accumulation is driven by the concept of compound interest. When individuals or entities have wealth, they are able to invest that wealth to generate even more wealth. This creates a cycle of accumulation that can perpetuate for generations. As wealth grows, it opens up more opportunities for investment, which in turn leads to even greater we...
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