Why is it that the rich get richer and the poor stay poor?

Capitalism is the main form of economy in all the core nations and in almost all of the countries in the world. The idea of capitalism itself isn't inherently corrupted or completely wrong. In theory, almost all forms of different types of economy are perfect such as communism. However, as we know from history, ideas in theory are very different to ideas in practise. As capitalism is the economic system where the people have control over nearly everything instead of the government. The theoretical benefits of this is that since the companies are the ones providing the service rather than the government, there is a competitive market of companies working hard to provide the best services, for example transportation or electricity, for the least cost. As logicially, people want the best for the least cost. Therefore companies should have good quality services for a resonable cost. This is where the problems start.

Companies are too focused on making a profit as well as provinding their customers good quality services for the least cost to make. This is where the poor stay poor and the rich become richer. Governments privatize sectors such as electricty, infrustrature, or transportation and these companies want to make the most profit they can while it was the dutey of the government to provide the service. This can be good as the government will provide the service but maybe not at the same quality level as if it was in a healthy competing market between companies. 

When the companies do become too focus on the profit, they'll pick on the little guys. They will find the hardest working employees they can find and pay them the least amount of salary possible. The company will make a huge profit as they buy the material cheap and hire cheap labour then sell the merchandise for as much as they can. The rich become richer will the poor are only given enough to just survive. 

Examples of this are sweatshops in India and the privatization of geothermal power plants in the Philippines where the workers at the power plant raise a strike serval months later. 

Growing interdependence of countries 

Increasing volume of cross-border transactions 

Variety of cross-border transactions

Increasing volume of international capital flow

  

Widespread diffusion of technology 

A 'perfect' image that summarises the definition as a whole

Typhoon Haiyan

The sheer destruction created by this storm shows how people are extremely vulnerable to elements in the Philippines. What concerns me the most is that every year these typhoons and tropical storms smash into the islands causing widespread destruction and grief, yet no real attempts to prevent it next year. Even trying to build better houses in another location would be better than rebuilding on the rubble of the sixth home to be destroyed by the typhoons.

People should be more prepared by setting up sand bags or any kind of destruction along the beach front or their houses. Response to these need to be quick and focus on the essentials such as water, food and shelter.

These people live in poverty and are forced to live in these areas and build shanty towns because the government will not help.