The Matthew Effect

There is an old Dutch proverb: “Water always flows to the sea”. The proverb indicates that money often goes to the rich, who need it least. The consequence of the rich getting richer, is also that the poor are getting poorer. This observation is made several times in the Gospel of Matthew, and is therefore called the Matthew Effect. “For whosoever hath, to him shall be given, and he shall have more abundance: but whosoever hath not, from him shall be taken away even that he hath.” It seems like a kind of natural inequality. If you have a lot of something, you will get more of the same. The winner takes it all. Although it is clear that the observation relates to possession (so-called ‘talents’), Jesus applies it also to “knowledge of the mysteries of the kingdom of heaven”. It needs to be stressed though, that the Matthew effect is an observation, not a command to act in a selfish way. On the contrary, the observation contains an implicit warning: you should do your utmost to belong  to the happy few who deserve to be in the kingdom of heaven.

The Matthew effect has become a topic of increasing interest since 2008. Economists like Thomas Piketty have observed an increasing revenue inequality since the outbreak of the economic crisis. There is an increasing pressure for revenue transparency towards politicians and top managers. Basic income for all is on the table. The Matthew Effect also relates to the 80-20 Pareto rule: 20% of the world population is consuming 80% of the world resources and 80% of the world population only consumes 20%. The Matthew Effect can also be observed in the acquisition of power and fame. There is even a Matthew Effect in misery and feelings of misery: if you have a lot of misery (e.g. health problems or lack of confidence), you will acquire even more misery (more of the same).

The Matthew Effect term was originally coined by Robert Merton, who already observed that eminent scientists will often get more credit than comparatively unknown scientists. Later, the “Matilda Effect” pointed out that female research work tends to be ignored more often than male research work. Even if the Matthew Effect may not be well-known by name, we all have an intuitive knowledge about it. I believe the Matthew effect explains why we all do our utmost to belong to the so-called upper classes (as far as you can cynically measure it by bank account status), even up to the point of neurotic behaviour. We are simply too well aware of the consequences of entering the lower class' vicious circles. It also explains why we are so afraid to show more generosity.

I also refer to my Dutch blog: “Kwellende rijkdom” and to “Economics of Good and Evil”.

Picture: Saint Matthew and the Angel by Rembrandt van Rijn. This is a freely licensed work, as explained in the Definition of Free Cultural Works.