The Wealthy Create Wealth

in #eonomics3 years ago

  


"Question from an an-com: 'free markets lead to tyranny' Example: a land lady who owns several rental properties on a street, wants to buy another that has come up on the market. She doesn't want to pay the asking price, so she puts "for sale" boards on all her properties, with no intention of selling them, just to depress the house prices in the area. The argument goes that people with capital, can use their economic power to build a monopoly."   


No individual or entity exists in a vacuum. An individual who attempts to falsely manipulate prices to the detriment of others will inevitably be exposed and word will spread. When this occurs, public slander and economic ostracism resulting in a tarnished reputation would punish anyone attempting such mendacity.    


The idea that the wealthy harm the less fortunate and exacerbate their poverty is the perniciously self-destructive ideology of covetousness. It serves nothing and nobody to look to another man's success and proclaim him not deserving of his wealth, if he has earned it in the market place through voluntary interactions. On the contrary not only has he legitimately earned his wealth, but he is thoroughly benefiting his community by his having acquired it.    


The wealthy provide jobs to people around them, invest in large corporations and small start-ups, and provide the capital needed for entrepreneurs to take out a loan to open their business. The poor are genuinely helped by the wealthy that move next door. This is how opportunities are created. This is how standards of living rise. It is not the opportunities that improve a man's life, but rather the smoldering desire to improve his lot through the sweat of his brow and painstaking dedication. The poor man must first make the choice to improve his life through his own perseverance. After that choice is made no force is powerful enough to stand in his way.    


  


The Wealthy Create Wealth   


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A quite one-sided view that does not hold to realitites.
Yes, there are rich investors who finance high-risk companies.
But they are the exception if you look at all the important measurements.
For example

The wealthy provide jobs to people around them, invest in large corporations and small start-ups, and provide the capital needed for entrepreneurs to take out a loan to open their business.

The overwhelming majority of jobs are not created by some rich people giving money to firms, but by single/family- small businesses. Those small businesses who often have no chance of getting a loan because their risk is too big for the banks.

Also most of rich people are not investors in the creating sense. They either invest in something that others would do if they had the money (houses) and as such don't provide any positive relatively to the situation where their money would be more distributed and instead of one person building 10 houses 10 people would build 1 house each.

Or they "invest" in stocks (huge part of money), which is not providing jobs at all, because it is speculation, not investment.
After the initial offering (and selling) of stocks the company does not profit from its stocks, quite contrary stocks costs the company a lot of money.
At the same time the money in stocks-speculation is not used for real investing.
If that money was instead distributed to people who buy stuff, that would create jobs and forward the industry.

Hello @lennstar

You are both right to some degree because there are all kind of people and al kind of actions one can do in this world.
I do both, sometimes I give money to a startup and sometimes I by some STEEM at the exchange.
I have even started business myself.
Have a nice day :-))

Hi @danilo-cuellar

I could not agree with you more! Why begrudge people with money? They worked for it and invested it wisely. There is nothing that need stop a pauper from becoming a prince, it is simply a matter of making the decision and relentlessy focusing on bringing the "dream" to fruition.

quote
The idea that the wealthy harm the less fortunate and exacerbate their poverty is the perniciously self-destructive ideology of covetousness. It serves nothing and nobody to look to another man's success and proclaim him not deserving of his wealth, if he has earned it in the market place through voluntary interactions. On the contrary not only has he legitimately earned his wealth, but he is thoroughly benefiting his community by his having acquired it.
end quote

Even if material "wealth" were redistributed equally, in would be just a matter of time for it to be distributed once again in a way reflective of the who had a wealthy mindset, a wealthy work ethic.

quote
The wealthy create wealth.
end quote

I don't have much money. I don't have all of my material wants fulfilled, however, I have a wealthy mindset and am in the process of creating wealth.

There is no shame in that and everyone, as far as I can see, is free to do the same.

​​Sincerely,
​Niamaat​ aka Teacher Nia aka Prima Nia
English Language Coach and
Translator (Spanish to English)

P.S. “Be great because nothing else pays.” -– Grant Cardone