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The Mystery of the Matthew Effect: Why Do The Rich Get Richer?

Let’s take a journey through the pages of the Gospel of Matthew, where a particular “Parable of the Talents” lends its wisdom to what we now call the “Matthew Effect”. Do the rich really keep getting richer, and the poor poorer?🤔

It observes that success begets success, and initial advantages in wealth, popularity, or status can dramatically shape our trajectories. Intriguing, isn’t it? Let’s dive deeper.

Unpacking the Parable of the Talents: A Story of Success

In the biblical tale, a master entrusts his three servants with talents (a unit of weight) of gold, each according to their abilities. The first servant received 5 talents of gold, the second received two, and the third received only one.

The first two servants invested their talents of gold and earned a return. The third servant buried his talent of gold to keep it safe and earned nothing.

An image showing the three servants from the Parable of Talents explaining the Matthew Effect
The Parable of Talents can also be used to justify that hard work pays off but the third servant couldn’t do much with one talent of gold and as instructed, he did keep the gold safe! (image source)

When the master returns, he rewards the first two servants for their initiative and removes the lone talent from the third servant, giving it to the first. Thus, punishing him.

💡 The moral of the story embodies the essence of the Matthew Effect: those who have more will continue to gain more, while those with less will lose even what they have.

For to everyone who has, more will be given, and he will have abundance; but from him who does not have, even what he has will be taken away.

– Matthew 25:14-30

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Diving Deep into the Matthew Effect

The concept that has intrigued sociologists, psychologists, and economists alike, the Matthew Effect, requires a careful examination to truly understand its breadth and depth.

Defining the Matthew Effect: A Principle of Success

🧠 The Matthew Effect, at its core, is a socio-psychological principle indicating that initial advantages—be they in terms of wealth, status, or recognition—often snowball into increasing success.

In other words, those who start with more tend to accumulate more, while those with less often find it challenging to catch up.

This principle paints a picture of a world where the “rich get richer, and the poor get poorer.”

An image explaining Matthew Effect which means initial advantages lead to further gain and disadvantages hinder progress by Tapan Desai
The Matthew Effect: A Pervasive Phenomenon

Origins of the Matthew Effect: Insights from Robert K. Merton

The term ‘Matthew Effect’ was coined by sociologist Robert K. Merton in his paper titled “The Matthew Effect in Science: Cumulative Advantage and the Symbolism by Intellectual Property”1You can read the paper here: Merton, R. K. (1968). The Matthew Effect in Science. Science, 159(3810), 56. https://doi.org/10.1126/science.159.3810.56..

Merton observed this pattern within the scientific community, where well-established scientists often received disproportionate recognition for their research, regardless of their actual contribution.

An image of Robert K. Merton.
Robert K. Merton coined the term Matthew Effect (image source)

Under the Hood: Unraveling the Causes of Success Patterns

According to Merton, this phenomenon occurs due to societal structures and recognition systems that tend to favour those already in the limelight. As a result, those with initial advantages receive more opportunities, leading to a cycle of ever-increasing success.

The Matthew Effect, however, is not a law, but a tendency. It doesn’t account for the outliers, the individuals who break free from their initial disadvantages to achieve remarkable success. Therefore, while powerful, the Matthew Effect is not deterministic—it can be influenced and potentially mitigated.

An image of a minimalist snowball icon symbolizing the Matthew Effect by Tapan Desai
The Matthew Effect: When Success Fuels Success

In essence, the Matthew Effect is a societal mirror, reflecting our structures, reward systems, and collective consciousness. It offers a lens through which we can examine the mechanics of success and the disparities they foster, pushing us towards a more nuanced and equitable approach to recognition and rewards.

Witnessing the Matthew Effect in Everyday Life

The Matthew Effect is evident in other domains:

🎵 Music: Popular musicians enjoy more promotion and collaborations, which enhances their success and exposure further while emerging artists struggle to gain the same attention.

📚 Education: Prestigious institutions like Harvard, Yale, or Princeton attract the brightest minds and substantial funding, reinforcing their elite status.

👔 Employment: Experienced professionals find it easier to secure jobs and negotiate better salaries, creating a cycle of continuous success.

🖋 Literature: Well-known authors receive more publicity, leading to higher sales, while emerging authors face challenges securing similar exposure.

🏅 Sports: Athletes who demonstrate early talent are often provided with more coaching and opportunities, further enhancing their performance.

💼 Business: In the competitive world of technology, companies like Google and Facebook that secured an early lead in their respective domains attracted more users and resources, further solidifying their market dominance, while their competitors faced an uphill battle to catch up.

Patterns of Success: A Global Perspective

On a global scale, the Matthew Effect is a key player in shaping economic disparities between nations. Countries with abundant natural resources, technological know-how, or strategic geographical locations often experience accelerated growth, attracting investments and skilled labour.

Meanwhile, countries lacking these advantages face a steeper climb towards prosperity.

The Matthew Effect, thus, is not just an individual or societal phenomenon but a global one, influencing the economic dynamics of our interconnected world.

It can also be seen in the race and diversity of society.

The Picture of Life: a video demonstrating privilege in the society portraying Matthew Effect

How Success Patterns Influence Reading Skills

📚 Reading abilities can also follow the Matthew Effect.

Children who learn to read early gain a significant advantage, enhancing their language skills and academic performance over time.

On the other hand, those who struggle with early reading may continue to face challenges, affecting their overall educational success.

Matthew Effect in reading: An image showing a graph showing an increasing gap in reading achievement between a good reader and a poor reader.
The Matthew Effect on Reading

Harnessing the Power of the Matthew Effect

Here are five things that a person can do if they are aware of the Matthew Effect:

🔍 Recognize Initial Advantages: Utilize any lead or advantage you have, such as your education, network, skills, or other resources to create further opportunities. Just as in Warren Buffett’s Noah Rule, where preparation is key, taking advantage of early opportunities can set the stage for future success.

💡 Invest in Yourself: The Matthew Effect suggests that early success often leads to more opportunities. Therefore, investing time and resources in personal and professional growth is crucial. This includes acquiring new skills and expanding your knowledge, akin to building your own mental models.

🤝 Seek Mentors and Networks: If you’re starting from a lower advantage point, mentors can provide guidance, and valuable advice, and possibly introduce you to new opportunities. Building a strong network can also help you tap into more opportunities and resources. This is a practical example of avoiding the Dunning-Kruger Effect, where self-awareness plays a key role.

💼 Create Opportunities for Others: If you’re in a position of influence, create opportunities for those who may be disadvantaged. This could be in the form of mentorship, providing resources, or advocating for fairer systems in your sphere of influence.

⚖️ Promote Fairness and Equality: Advocate for systems and policies that reduce disparity and provide equal opportunities for everyone. This could be in your workplace, community, or at a larger policy level.

The Matthew Effect serves as a reminder of the systemic disparities that shape our society. By understanding this principle, we can strive to make informed decisions, promote fairness, and work towards creating a more equitable society.

🙅‍♂️ Avoiding Pitfalls in Success Patterns: Be mindful not to overlook potential talent from less prestigious institutions or disadvantaged backgrounds. Also, while early success is beneficial, it’s important not to become complacent. Use early success as a launchpad for continuous growth and development.

Conclusion: The Power and the Paradox of the Matthew Effect

The Matthew Effect is a profound reminder of the systemic disparities that subtly yet powerfully shape our society. It’s as alluring as it is alarming – success feeding on success, yet potentially widening the chasm between the haves and the have-nots.

Those who cannot remember the past are condemned to repeat it.

George Santayana, The Life of Reason, 1905

If we forget to consider the Matthew Effect, we may inadvertently perpetuate the very inequalities we strive to overcome.

So let us remember the lessons of the parable, using our early advantages not just for personal gain but to lift others too. Because success, in its truest form, shouldn’t just be within the reach of the privileged few, but a possibility for everyone. After all, we are the authors of our society’s story, and it’s up to us to determine the next chapter.

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