My recent trip to Goa with my daughters and son-in-laws, celebrating my 40th wedding anniversary, was a delightful experience. Their HDFC Metallic Credit Card privileges elevated the journey, offering seamless check-ins, premium airport lounge access, and delectable breakfast/ meals at just ₹2 – a truly elite experience. Even that amount being refunded as cash back later. What amazed me was the reward points earned on every spend, making the trip both comfortable and rewarding. This experience showcased how modern banking perks can redefine travel, offering a rare blend of luxury and value.

The ₹2 breakfast deal for Infinia metallic card holders at airport lounges highlights the stark contrast between luxury and reality. While the privileged few enjoy high-end perks at nominal costs, others struggle to make ends meet. This dichotomy raises questions about economic disparities and the value of exclusive benefits for select groups. It’s a reminder that access to luxury is often reserved for those with means, leaving others to navigate a different reality.

The Irony of Capitalism: How the Rich Get Richer While the Poor Remain Trapped

Capitalism, often hailed as the engine of economic growth and opportunity, has a darker side—one where wealth begets wealth, and the poor struggle to break free from systemic barriers. The example of premium credit cardholders—such as those with the HDFC Infinia or Metal cards—illustrates this irony perfectly. These elite cards offer lavish rewards, cashback, and exclusive privileges, effectively making money for their wealthy holders while the poor are excluded from such benefits. This phenomenon is not accidental but a direct result of how capitalism perpetuates inequality.

The Self-Reinforcing Cycle of Wealth

1. Access to Financial Privileges

• High-end credit cards (like Infinia or Metal) offer reward points, airport lounge access, and discounts on luxury spending.
• Lower interest rates on loans due to high credit scores, allowing the rich to invest in appreciating assets like real estate or stocks
• Exclusive investment opportunities (private equity, hedge funds) that yield higher returns than traditional savings available to the middle and lower classes.

The more they spend, the more they earn in rewards, creating a loop where money generates more money. Meanwhile, the poor rely on basic banking services with high fees and minimal benefits, keeping them in a cycle of financial stagnation.

2. The Matthew Effect: “To Those Who Have, More Will Be Given”

The Matthew Effect (derived from the biblical verse Matthew 25:29) explains how the rich accumulate advantages while the poor fall further behind. In capitalism:

• Wealthy individuals can take risks (investing in startups, stocks, or property) because they have a financial cushion.
• Poor individuals live paycheck-to-paycheck, unable to save or invest, making upward mobility nearly impossible.

A study by Oxfam (2023) revealed that the richest 1% captured nearly two-thirds of all new wealth created since 2020, while the bottom 50% saw minimal growth.

3. The Illusion of Meritocracy

Capitalism promotes the myth that success is purely based on hard work. However:

• Inherited wealth plays a massive role—children of affluent families receive better education, networking opportunities, and startup capital.
• Elite credit cards are often inaccessible to those with lower incomes, regardless of their financial discipline.
• Tax loopholes favor the wealthy, who can afford accountants to minimize liabilities, while the poor pay a higher effective tax rate.

Warren Buffett famously admitted that he pays a lower tax rate than his secretary, highlighting how the system is rigged in favor of capital over labor.

Why the Poor Remain Poor

1. Debt Traps and Predatory Lending

While the rich enjoy low-interest loans, the poor rely on:

• Payday loans with exorbitant interest rates (up to 400% APR in some cases).
• Credit cards with high fees, leading to perpetual debt cycles.
• Lack of collateral, preventing them from securing affordable loans for education or business.

A report by the World Bank found that financial exclusion keeps nearly 1.7 billion adults unbanked or underbanked, limiting their economic mobility.

2. Wage Stagnation vs. Capital Gains

• Workers’ wages have stagnated for decades, while CEO pay and stock market returns have skyrocketed.
• The rich earn passively through investments, while the poor rely on active labor, which is taxed more heavily.

According to the Economic Policy Institute, the average CEO now earns 399 times more than a typical worker, up from 20-to-1 in 1965.

3. Social and Geographic Exclusion

• Gated financial systems (like premium credit cards, private banking) exclude those without sufficient income.
• Poor neighborhoods lack access to quality banks, forcing reliance on check-cashing services that charge high fees.
• Education disparities ensure that wealth remains concentrated within privileged circles.

In nutshell,

Capitalism, in its current form, is designed to reward those who already have capital. The rich enjoy perks like premium credit cards, tax breaks, and high-return investments, while the poor face barriers that keep them financially shackled. This is not a bug in the system—it’s a feature.