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On the surface, such a statement seems blindly obvious. We are taught as youngsters that “the rich grow richer and the poor grow poorer”. For example, if one were to win the lottery and invest all the money (which is rare) in stocks, property, etc., one can almost gain a very decent living without even working!

This, coupled with the fact that with better education and better resources (stock brokers consultants, financial advisors) implies that the rich are able to seek out the education they need and have the time and resources necessary to invest and grow financially. The poor are less likely to benefit from the increase in education (More schools and better programs) and are thus less likely to spend the time and effort in learning how to invest and to consult financial advisors.

Therefore, I do feel that the statement concerning the growing gap between the rich and the poor is true. However, before any further analysis, some variables must be defined

· Firstly, it is important to understand the limitations of this study. The problem is that the level of wealth of a person cannot be totally attributed to his or her income. In fact, very little may be attributed to a person’s income. For example, statistics in the US in 16 reveal that the median income of millionaires is only $11, 000 dollars. And yet, how are they defined as millionaires? The answer lies within the lifestyle path that these rare men and women choose. For example, millionaires, from the same set of data, have been shown to invest 0% of their income, an extraordinary higher number than an average family. Millionaires (or the average millionaire) chooses not to spend their money on the newest cars and the fanciest suits, but rather to be frugal (How do you expect they became a millionaire in the first place?)




· Therefore, it is not correct to assume that a high salary doctor who earns over $600 000 a year is wealthier than a ‘typical’ millionaire in the states who earns only $11 000 a year. Income is but a factor (among many) of one’s level of wealth and should not be used alone to draw conclusions.

· However, because of the limitations of this study, we must confine ourselves to studying only the incomes and assume that it does have a large impact upon determining whether one is rich or not. (Though how much of an impact remains a mystery)

· Secondly, the question refers to the concepts of ‘rich’ and ‘poor’. Because such words are not defined to a particular source of income, we must use our own intuitive definitions to define the divisions. For this study, any income below $0 000 is considered to belong to a poor family or person. Any income above $100 000 is considered to belong to a rich family or person. Any income in between is considered to belong to a middle class family or person. Unless otherwise stated, these figures are in Canadian dollars and the differentiation between family and person will not be made (Unless otherwise stated).

· Thirdly, the statement does not refer to any specific period of time. Was this statement made in the 80s? The 0s? Because of this factor, we will assume that the statement refers to the present moment (Including a few years leading up to the present moment)



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