It is one of the most common sayings. The rich get richer, and the poor get poorer. But exactly how that happens?
We hear this saying not only in the business world, but in the sports world as well. For example, when a great championship team manages to get a great player to improve its roster, we say the rich get richer.
But back to the world of money and economy, how are some people able to amass more money? It all comes down to the central bank that has a policy of cheap money.
And it all depends on the European Central Bank, a bank that buys bad stocks and bonds to save banks, tries to fuel economic growth, and props up states that are in dept. And while all that sounds good, the reality is that by doing it, the European Central Bank promotes a policy of cheap money.
Let’s be honest, the ban should try to fuel economic growth. But the fiscal policy of the European Central Bank, as well as other central banks is fueling an uncontrolled global deluge of money.
And the result is more expensive apartments in London, more expensive real estate in Germany, and so on. The winners are the rich people, and they are getting richer.
This DW documentary tries to explain just how the money in the world function, and why the rich are constantly getting richer.