Why does it seem so difficult to get rich or at least climb the social financial ladder for most of us? Are we incapable of it? Especially those whole are coming from middle class or a lower middle class financial background it seems that they are stuck in the vicious circle of always finding it difficult to have enough. For generations these people do jobs which are making other people rich but they themselves are in this mental block that they are meant to do a job which they hardly like, get a pay which hardly meets their expenses and then live a life of perennial scarcity. There are only handfuls that can break this cycle of scarcity and climb the ladder of making money.
In every part of the world this is happening but the problem gets acute in the poor economies and the growing economies. There are some causes which I could think of for this.
When the industrial revolution started and the economies started to move from manual mode to automated mode there was a need for an increased man power to work in the factories and businesses. But these new people were needed to follow orders and work and be happy with it. Schooling was reserved for the rich and elites. But now in the changing world they needed man power with some basic literacy and understanding to run the machines and processes of the factories. They needed manpower to go oversees and work for these businesses in colonies all around the world. They needed loyal people with the least of aspirations and complete obedience.
This led to the factory schools. Factory schools were not what it literarily meant as schools running in factories or factories running in schools. There was a requirement of schools which would inculcate a middle class sense among the children who would be programmed to be workers when adults, and be obedient and loyal workers. These schools worked on social and moral values of being sober, punctual and docile in behavior, to respect the properties rights of others, be honest and follow orders and not question others. These combinations were required to have good workers, a social conditioning that was required for having a large and manageable labor force.
This was a part of the state sponsored school system and is prevalent till today. This originated in Europe whose countries were the main colonizers of the world and later it was adopted by America also. Such education system was required to get people who would silently work from Monday to Friday and curtail the free thinking and critical thinking ability. They were never told about how to manage finances and grow intellectually. This system then further was introduced in the colonies which meant practically the whole of the world. This system of education has been incredibly successful in creating generations of born- work- die people.
This affected the belief system of majority of the population that they are meant to lead a frugal life with whatever money they got as salary. As these people lived in large communities so they always saw poverty around them and often they believed that they are destined to such a life. Children saw and believed in poverty, money hard to come by or money is something evil or only meant for the rich. Even now this belief is too prevalent that money is not very important in life, we need money to live a comfortable life and not to rich, money is over rated. Even in movies and books it is shown as the rich to be the evil villain and the hero to be poor. People started to romanticize poverty. People thought that the rich are rich because they either cheated, or did something wrong to get rich- just opposite to the social conditioning of the factory schools.
Capitalism is not bad as it has created a lot of wealth per se but it has contributed to a large class of people staying financially not well off. Big companies have used all techniques to sway the people in buying costly things and services which are you may not require and prevent you from saving and investing. These techniques used of these big companies range from psychological indoctrination, advertisement, cognitive bias, creating inferiority complex. The banks are ever ready to finance your dream item with low interest and EMI so that you will not feel the pinch of repaying. The people on the lower income levels don't know how to utilize debt, they are more inclined to buy liability with debt and thereby get stuck in the cycle of poverty and scarcity. Capitalism ensures lower salaries so that you may need multiple jobs to live a comfortable life and indulge in the material pleasures. All these things are meant to keep you away from the rational thinking person who can take right decisions.
Thankfully things are changing slowly now as people are getting aware of things with better and increased opportunity to break this cycle. If only the parents can now guide their children away from the factory school mindset and belief system towards an open and exploring and independent mindset, then we may see a new phase of capitalism with lesser inequality.