Economic growth under capitalism may far exceed the growth of other economic systems. However, often, this system produces widening inequality or economic inequality.
The accumulation of private capital is inevitable. This ultimately leads to the concentration of wealth in the hands of certain individuals.
Many economists try to explain the drivers of economic inequality in capitalism. One of them is that in capitalism, the rate of return on investment often exceeds overall growth. When these conditions persist, wealth held by capital owners will increase much faster than other types of income (such as wages). In the end, the wealth of the capital owners is greater.
