Disclaimer: this topic is about economics which is not my field of study. This is just a random thought on economics and errors may present in this post.
Recently, I am concerned about why some people are poor and some others are very rich.
According to my economics teacher when I’m in grade 10, well, I’m not in social stream and hence not studying economics on grade 11 and 12, this problem is a cycle: people are poor because they didn’t have job to do, they don’t have job because they didn’t have the education that qualify the job, they don’t have that education because they are poor.
There is a video about ‘particle exchange’ in Minute Physics (https://www.youtube.com/watch?v=3_RhISgoXUs ) which is analogised by an economical exchange which explains why the value of each country’s money is not the same and how to apply it in Physics.
I think that the concept of being rich and poor is made as early as when people take profit when exchanging things. Taking profit will cause people to make the value of their product higher and higher, thus creates inflation. People who cannot follow this velocity of inflation will be the ‘poor’, and those whose product value get high faster will be the ‘rich’.
For example, product A is sold at 10 gold, bought at 9 gold. Suppose there is only 2 people in this system: I and the supplier. Also, assume that there is just 10 gold in that system, which is mine. I then bought that product and paid 10 gold to the supplier. After that, I sold that product to the supplier at 9 gold. The supplier will get a profit of 1 gold and I will “lose” 1 gold. The total assets owned by me decreased by one gold and by the supplier increased by one gold. This makes me “poor”-er and the supplier “rich”-er. If I want to be the “rich” one, I must find a way to get 1 gold in other system where there is 1 gold available for free (or with exchange scheme like this one). If the price of selling and buying things are the same, the total value of a person will be the same: no rich and no poor.