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Notably, the rising mortgage liabilities for middle-class families are essentially manifestations of wealth accumulation among the rich. As the wealth gap widens, an increasing portion of society finds themselves compelled to assume larger debts, primarily to facilitate home purchases, thereby unintentionally enriching the wealthy class.
Wealth Inequality: The Practical Example
The recent COVID-19 pandemic serves as a practical illustration of how wealth redistribution occurs within this system. As governments injected enormous amounts of money into the economy, wealth concentration among the rich surged. Wealthy individuals often diversify their portfolios, desiring various assets, including real estate.