Get Rich While Others Get PoorsteemCreated with Sketch.

in #economics7 years ago (edited)

It's true that many get rich through learning and hard work to create something that others want to buy. Not that this is a guaranteed way to get rich, but some people are poor because they don't try. Those who put more effort into creating something that others will pay for will accumulate more money from that success.

Again, some people do try, and work hard, yet they can be middle class or even poor as well. There are various factors and circumstances in life that affect our ability to seize opportunities, but it helps to first be able to recognize them, as others can.

But getting rich by making things others want to buy, isn't always the case. Some people work hard and advance in wealth while other don't, and yet others make money off the backs of others who are led by carrots.

Money has become a defining factor and measure for many people. Not only do the rich and poor follow money like a carrot, but evaluating other people based on money and wealth has been a norm in various societies for hundreds of years.

I'm sure you've heard of one man's trash is another man's treasure, but have you ever considered how one man's crisis is another man's opportunity?

Ever wondered how some people get rich in a bad economy?

They look for events that create problems where they can take advantage of the chaos.

They play the opportunity that arises from problems in the economy: profit from a crisis by buying when things are low.

Order out of chaos (as the saying goes), and many clever (or manipulative) people can turn the chaos of the world or other people's lives, into their own personal financial order and stability. You don't need to be rich to be able to buy things low when other people are panicking. Accumulating money starts small and grows bigger.

When the reality of a crash hits, many have little money to begin with, and others are selling off cheap in an effort to get cash for survival. But others have money to buy it up low. They aren't as desperate or falling for the fear in the markets and can afford to buy low while others can't and are just trying to survive.

Not only are these people already well off with the money they have and can weather the storm of the crisis -- but they are the few who can buy things up while most others can't, and this is how the wealth transfers happen in history. It happened in the Great Depression of the 1930's, and in various other economic crisis' of the 70's, 80's, 90's and 2000's.

Bubbles get inflated with the bandwagon effect of people going to the moon, greed sets in to buy buy buy, then the hype dies down and people start selling and more people jump on that bandwagon riding the wave down in a panic and crash, or partial crash. Many of these are artificially stimulated pumps and dumps that play on the frailties of human psychology. Round and round we go, as the poor get poorer and the rich get richer playing this game with people's lives.

The wealthy transfer more wealth to themselves because they buy at the bottom of a crisis and buy up all the real world wealth in exchange for your currency or metals that don't have much real world use apart from technological aspects. Land, businesses, products, etc. can be used in the real world, even in a crisis.

Do these ups and downs, pumps and dumps, all seem a bit "unreal" to you? Or is it just me?
Why are we living this way? Repeating the same mechanism over and over but with different "makeup" each time...
Why do we keep doing the same things over and over that just make some people richer while most of the rest of us get poorer?
What if we all stopped playing these silly manipulative games of pump/dump buying and selling to make quick money and causing all these economic cycles to repeat? Can it be different? Maybe keep your money in an investment you want to support, rather than playing the pump/dumps others create to get everyone else falling for.


Thank you for your time and attention. Peace.

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You raise some important questions in this solid piece of writing.

The economy we are operating in does seem "unreal." There are so many artificial numbers, pump and dumps, and psychological deterrents from the true story.

You ask can it be different? I believe the cycles can be less severe. With education in economics and no central planning of our money supply I believe people would be less inclined to participate in lemming waves. If we seek to make those waves extinct we begin down the path of thinking that created the Federal Reserve banks in the first place.

less inclined to participate in lemming waves

Yeah, people need to become more aware of how things are being manipulated. Then it could be possible to change fueling them when manipulators act.

Stop the manipulative games of buying and selling? You are against capitalism and have another option to offer?

Is there a magic number you have defined as an acceptable profit margin a company should be allowed to make?

Apple gross margin is above 60 and Exxon is below 20. Does that make Apple bad and Exxon good?

Not sure where you were going with your post or questions.

STEEM On!!

Pumps and dumps, rather than support for the industry you invest in. That's less of a buying and selling to make money quick mindset.

Edited to:

What if we all stopped playing these silly manipulative games of pump/dump buying and selling to make quick money and causing all these economic cycles to repeat? Can it be different? Maybe keep your money in an investment you want to support, rather than playing the pump/dumps others create to get everyone else falling for.

Good clarifications. Thanks. I agree pump/dump schemes add little to general well-being. Exception perhaps for those that get wrapped up in the debacle, lose some savings, and walk away with an understanding they need to be more skeptical and do more research before believing in the too good to be true rags to riches opportunity.

Even better if the same folks apply their new found skepticism to politicians that promise something for nothing and new freebie entitlements. Be suspicious !!

Yes, caution, curiosity and doubt to gain certainty ;)

Economy, in general, is unreal. Mostly because people are greedy and opportunistic. Market can be manipulated especially if you have the means and connections to do so. Case to point, hoarding. As usual, I'm going to use my country as an example (sorry). We're supposedly one of the major producers of rice and yet often, there would be period of rice shortages. Businessmen collude and hoard the rice and drive the prices up. Even if almost everyone knows by now that it's an artificial shortage, people would still do anything to buy rice because it's our staple food. The more financially challenged would give up on other things to be able to divert what little cash they have into buying food. And no, it's not only the rice. A LOT of stuff here gets hoarded. The province I'm living in now has a lot of farms and plantations and yet the prices for vegetables and such are exorbitant. But they get away with it because food is a necessity. And they don't hesitate to take advantage because living in luxury beats being poor. Another point (and not even artificial) was during a strong quake back 1990/91 that had people selling their properties for low value not only to have cash for survival but also from fear that another quake would destroy Baguio City (it's high up in the mountains). So off the rich business people went buying this and that. It's easy to say, so don't play the game. But not everyone has the option of simply upping and leaving. Like here, they don't spare anyone and even target food supplies. Plant your own. Except a lot of people have been robbed of their lands by rich people with private armies or those with connection way up there.

one man's crisis is another man's opportunity

Then again, perhaps what I see as greed is only them simply surviving (in style) the way they want to. Or people being good at spotting (exploiting) an opportunity.

Do you live in communism or socialism?

Democratic republic overrun by capitalism. Supposedly, everyone (eligible) elect their choice but since the candidates are mostly from (/supported by) oligarchy, whoever gets elected have other priorities that mostly don't involve serving and protecting the interest of the masses. So instead of "for the people, by the people" it becomes a joke here to say "poor the people, buy the people". But it's looking like it might change a bit in the next 5 years. Then again, the oligarchs are pretty much pulling out all the stops to protect their interests. Tsk tsk.

Don't tell to the world our technique Krnel... It will not work anymore if everybody does it! Haha, joking, it's great to share. Maybe we'll see a stable market appearing? But I doubt. ;-)
Cheers my friend.

LOL,yeah I wish we could just see stable support for businesses and such at least. No manipulation. Someone dumps? ok, fuck him lol.

Thanks for the feedback.

There isn't a more destructive combination than "Greed" and "Ignorance".

Either one, taken on it's own can lead to any number of possibilities.

The accumulation of wealth and property aren't necessarily bad. Good or bad is determined by the way wealth and property are used. I admit this is a definition of greed that omits the "selfish" aspect. But Greedy people in history have provided the means for other people to earn a living that they might not have had.

Rockefeller comes to mind.

To some, ignorance is preferable to an awareness of things they can't confront or don't feel they can change. And in some cases, peole have accomplished great things, simply because they didn't know that ,"You can't do that."

Bu when you put the 2 together, the results are almost always predictable.

The opportunity you're seizing when you buy low and sell high is that you're selling high to the "suckers" who are following the wave, and you're taking advantage of their inadequate knowledge.

In order for one to succeed, others must fail. That's just the way the world works when you look at the transfer of money and wealth.

Lol you cannot know if buy low or high ...i not following the wave,just buy and save ...in march i buy ETH high with 50 $ and was go down to 39 $ in next 2-3 week ....new is 230$

Yeah, it's hard to know where the top or bottom is, things can change.

my opinion ....cryptocoin will be future of banking ...buy new to spend in 20-30 years :D

Hehe, yeah that will probably be true ;)

You always know after the fact .. Hindsight is 20-20 :)

Because we tend to go with the flow. And of the "herd" instinct and fear of losing the latter. As the saying from us: "Who does not risk — that does not drink champagne!"=))

Yeah, afraid to "lose it all"

Hard work may or may not pay but the smart work always pays off.

i agree with you 😀😀😀 We can create opportunity...but 90 % of traders buy high and sell low😀

In business you must learn how to enjoy the peaks and valleys. Thanks for putting this great article together.

You're welcome.

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