Wealth Condensation 

Wealth condensation is the idea that the rich get richer; those who are already wealthy have the capital and the means necessary to invesst into new enterprises and new means of creating further wealth. As time goes on this wealth condensation can be seen to signigicantly contribute to the wage inequality in society. Whilst the wealthy elites income increases dramatically year on year through new investments, those at the bottom end of the labour markets wages tend to be merely in-line with inflation.

Individuals with weath often have vast savings and perhaps rental properties that accumulate additional earnings. Whilst lower income groups are earning enough often to merely cover their overheads, those at the top end of the labour market are investing into further means of recruing wealth. This is a great cause of wage inequality that will only get worse; as time goes by this wealth is passed from generation to generation as the wealth grows through further investment. Whilst these elites wealth is growing

A good example of wealth condensation are HGV drivers, HGV drivers who own their own trucks often make more money than those who do not, as they can escape the rent charged on leasing a truck, even after costs of maintenance and depreciation are taken into account. Thus, a HGV driver with a level of wealth can afford their own truck and thus increase their earnings. Whilst a HGV driver who does not own their own vehicle makes a lesser wage and is unale to afford their own truck and thus unable to increase their wage.⁽⁵⁾

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