I have always thought that the saying "Rich are getting richer, poor are getting poorer " is always a short term malady.
Think of it, when the rich get richer, where will the money they have be ? They have to spend it and it has to come back to the economy right ? (I am taking into account all the money hoarding that they would do and then spend whatever remains ;-)).
Isn't this quite similar to the situation that, when high tide occurs, a boat moored on the pier does not sink, but in fact, rises with the tide ? Of course, the boat rising with the tide is a slow, but a sure process.
May be, the Singapore return Economist Macchan can shed some light on this.
Posted by Shyam Krishnaswamy at 8:23 PM