About Wealth and Randomness

(reading time 14 minutes)

Naive people often like to pronounce the phrase "If you are so clever, then why are not you rich?".
In this case, in fact, they are not interested in the issues of the welfare of the opponent, and they pronounce this phrase as a counterargument to some really constructive thoughts of the interlocutor, when they have nothing to object. And in order not to feel "depressed" by his intellect, they use the above expression to simultaneously put a person in a deadlock (as they naively believe) and feel their superiority. In general, a banal attempt at self-affirmation by humiliating the interlocutor.

In fact, there is no correlation between the intellectual abilities of a person and his material condition. And according to the research of recent years - everything is even slightly the opposite, and the main role in career rises is played by "chance".
One of the latest works on this topic "Talent against luck: the role of chance in successes and failures"
Original here Talent vs Luck: the role of randomness in success and failure A. Pluchino. A. E. Biondo, A. Rapisarda


This work includes:

• demonstration of the influence of the random factor - when only one incidental impact is sufficient to radically affect the career, reputation or financial result of individuals and entire companies;
• mathematically substantiates the error of the world's dominant approaches to success evaluation, which rely on statistical data, such as "if so, it will continue to be so" - Paul Lazarsfeld calls this "backdating", also known as the "hindsaath mistake", Nassim Taleba is a "phenomenon of explanation" (this will be discussed in a separate article)
• предлагает разработанные стратегии, которые призваны преодолеть "эффект Матфея", когда "богатые будут богаче, а бедные беднее".

Why do the rich get richer?

Capital and material wealth are distributed according to the scheme of 80/20 - 80% of wealth belong to 20% of people. This distribution occurs in all social groups, of any scale. This distribution is called the power law or the Pareto distribution law

Distribution of wealth, this is one of the oldest and most complex problems of mankind.
You can certainly puzzle over the questions "Why is this happening?", "Why is the world so unfairly arranged?" And try to calculate a spherical horse in a vacuum. It is possible to collect scientific groups and allocate grants for such studies, which will seek answers to the two above questions.
But! In a concrete, given case - perhaps it will surprise someone - the answer is very simple "Because the WORLD IS REALLY INEIGNED!"

I do not think that it will be a terrible secret for someone that our world is full of nepotism and corruption, and that "hand is washing its hand," and that any official, in any state of the world, takes bribes (if it is sure), that any a large entrepreneur gives bribes that any industrialist bribes officials and has his own lobbyists, that industrial espionage is a large industry, that the anti-drug departments trade them, etc. etc.

Certainly, success in career growth is extremely important - to be at the right time and in the right place, this is very important!
But, further on come into play the "principles" - "can you do something not very good, from the point of view of morality or laws, but, do you get money for it?" while violating various laws, from legal to Divine.

Most of the people, mediocre, with short forecasting and the same memory, with low moral principles and a questionable value system, will choose a personal benefit. Then they will be accepted into the "club", tk. in a world of big money (really big), honest deals are less likely than the new year, and club members should be sure that you are with them on the same wave, that you are like-minded and share their values and views.

To an honest man, with high moral principles and a system of values created by oneself, to achieve success is more difficult. often have to go to a deal with a conscience. What for him will be real suffering.
Conversely, the lower the moral principles, the higher the likelihood that a person will go for it.

Therefore, the older phrase "Fools live easier" has much more reasons for it than "If you are so clever, then why are not you rich?". By the way, the last question can be appealed "Because I'm honest."

Are all the rich people unprincipled assholes?
Of course not! And thank God!
However, the above-described takes place in our world, while on a large scale, and to be more precise, among rich people, whose state is more than 50 million, it will be very, very difficult to find someone who has earned his fortune honestly.

Is it possible to earn a lot of money honestly?
Yes! And to do this is not more difficult than what we do every day.
But why are so few people becoming millionaires? Because they often think of the stomach, than the head.
The fact is that they just want money! Just! Want! Money! It's really stupid!
Ask them "why do you need a lot of money?" and in return you will hear - a car, a house, travel, children education, etc. etc. In this harmonious series, did you see creation somewhere? No. And you will not see, because thinking "gastric" - consumer. And creative thinking can only be in a person who thinks with the brain, not with the stomach and not with the comfort zone.

Two principal differences.
A person who thinks with the brain, seeks problems in himself and thinks, thinks about what he can make improvements in the world - creative thinking.
A person who thinks with his stomach, seeks problems in others and in the world, thinking about what he can do for himself - consumer thinking.

In business, these two types of thinking are manifested in the choice of strategy:

• Creative thinking chooses a strategy to increase profits.
• Consumer thinking chooses a strategy to reduce costs.
  At once I will note, that there were no comments "the business can combine both strategies". Firstly, if you think so, then with a probability of about 80% you do not have a business and you have no idea about it, or you have it, but you still have no idea about it. That's how it is, yes ... Because this simple idea is equivalent to how to get into the car and simultaneously turn on two D and R transmissions, and try to go. Or turn the steering wheel simultaneously in both directions.

---

The problem is not that it is impossible to earn a lot of money, but the fact that people are often asked the wrong questions, and accordingly, to the wrong question, you can get only the wrong answer. It is logical, right?
And then, according to the given vector: the wrong question - the wrong answer - the wrong action - the wrong result.

Instead of asking the same, very contagious and extremely popular, absolutely stupid question "how do I make a lot of money?"

It is necessary to ask another, more constructive question - "what can I create value for people?"
The answer to this question will be the starting point to cherished welfare.

We, people, never pay each other money for goods and services - we thank the money of other people for the values they create for us.
Therefore, to start receiving gratitude from other people, you need to start generating value for them.

Another problem of lack of money, most people, is that there is no understanding of the philosophy of money, they do not know what money is - their very nature, purpose and principles of circulation.
Many people can not give an elementary definition of money. It seems like everyone understands what it is and why it is needed, but when you ask a person "give a definition - what is money?". That first few seconds, he looks at you like a fool, gradually adopting this look on his face. Check yourself. Ask this question to your friends - 8 out of 10 will not be able to give you the right answer. And the reason for this, the elementary financial illiteracy of the population of the post-Soviet space - we were not taught this. And independently, most of the people of the planet, do not want to study - such is the man.

Money is a universal means of exchange.

The sum is an equivalent equivalent of value.

Payment - thanks for the received value.

So everything is very simple - understanding the philosophy of money, you can proceed to their prey. After all, if you had the task of extracting coal, then it would be unlikely that you began digging anywhere and horrible - right? You would first have clarified for yourself the philosophy of coal - what is it? How does it look? What is it used for? what happens? where to look?

Philosophy is the mother of all sciences and life itself. But, today people have defiled "Philosophy", believing that this is the destiny of bookworms, which have nothing to do, so they spend their time on a lot of stupid gestures, calling it an employment, but in fact, they simply simulate the activity, the efficiency of which tends to zero.
Philosophy (Greek φιλοσοφία) literally - "wisdom", "love of wisdom."
Without philosophy, no activity is possible.

The result

To become rich (if there is such a goal), then for starters it is necessary to understand that the very desire to be rich is not quite right.

• You need to define the target and set the vector. It is more true to say "I want to engage in such and such an activity in order to create such and such values and to make a fortune on this".
  By the way, it's very good, if there is an understanding of what the state will be spent for, because money must be in circulation - "money must work" - money that simply is, which lie, first depreciate, and secondly, negatively, depressingly affect the human psyche (partly because of the first factor).

• Next, we need to draw up a plan of action to realize our intention. But at the same time, one must understand and be prepared to act on the situation and be flexible.
  If there is a start-up capital, it is good - if not, then it will appear when the person writes a plan and begins to take steps to implement it (checked many times). It is extremely important to distribute capital in two parts - an asset and a reserve. The asset is used for operating activities, the Reserve is left to cases of maneuvers and error correction (which will).

• Start acting, and the Chance and Divine Providence will help you (checked many times).

The philosophy of the entrepreneur is like the hunter's philosophy. When a hunter goes on a hunt, he has a goal "on whom I hunt?", There is a plan "I know where the beast is found and where I'm going?", And there is a "bow and arrow" tool.
He does not know exactly where and when he meets the beast, he just moves in the direction where the beast should be about, and then the Chance and Divine Providence interfere help him to realize the plan.

---

Sign up for my blog @brainmechanc9en you'll learn much interesting and useful

Dear reader, thank You for attention to my creativity, I hope, this information will be useful for you and will make you more happy and free!

My blog in Russian @brainmechanic1ru