Sunday, March 16, 2014

the root of all evil?

They say money is the root or all evil, but what is it really, it’s just a way of counting wealth.  And most of us want to be wealthy, not evil. Well OK most of the time.

Let’s get back to wealth
An economist might define wealth to be “anything of value.”
If value is determined by the customer and we want to get some more wealth, how do we do it?
It’s really a simple process; there are 3 ways to generate new wealth.
We can go dig it up out of the ground like a prospector in the gold rush;
We can plant it and nurture it until it’s ready like a farmer; or
We can take something that people don’t value because they don’t want or need it, and we can turn it into something they do want or need thus giving it value and creating new wealth.
You say but wait what about banking and investing or all of the service businesses.
Bankers and investors can certainly become wealthy but think about it are they really creating wealth, or are they just really good at moving it around?
And remember the people who really got rich during the gold rush were the merchants and store keepers selling supplies to the miners and of course the people who made all of those supplies.
Manufacturing is how we create wealth

No comments:

Post a Comment