How Can the World Be Fair if the Rich Get Richer and the Poor Get Poorer?
Enter: The Matthew Effect.
The Matthew Effect, also known as the principle of accumulated advantage, is not only a platitude.
The underlying mechanism of the Matthew Effect is preferential attachment.
In simpler terms, it’s the idea that wealth gravitates towards those who already have it.
If you have more resources, you’ll generally find it easier to gain even more.
But it’s hard to grow if you don’t have any resources.
This is like a self-inforcing loop.
The Matthew Effect, in its extreme form, echoes a line from the Bible:
“Whoever has will be given more, and they will have an abundance. Whoever does not have, even what they have, will be taken from them.”
The idea is that if you’re open to faith, you will be showered with wisdom.
You’ll grow in your faith and gain a deeper understanding of it.
But if you look the other way, you’re not just staying where you are; you will go backwards.
