Can you imagine yourself as a wealthy person? Envision you own a large company, or set of them, that produce foodstuffs.
The items your companies create, are largely perishable. If you don’t use them, or sell them, what benefit is there in making them?
You can only eat so much, and even if you gave some of your output, to friends and colleagues, you would still have way more to deal with, than you could ever hope to consume.
What do you do? Do you like the idea of staying rich? If you do, my suggestion would be, sell things.
Can you come up with a better answer? I certainly can’t.
In fact, does it even make sense, to have your factories churning out food, you’re not intending to sell?
Again, do you want to continue to make huge amounts of money? If you answered, “Yes!” allow me to inform you, it would be flatly ridiculous to not find ways, to make a profit off the products your industries were working hard to create.
Without questions, this is the model, for most folks with substantial means.
The idea that a real estate mogul, would cause to be built, potentially thousands of personal residences, without the underpinning concept, that they would end up being sold to make a profit for that tycoon, seems more than a little ridiculous.
The point of this concept, is that for the most part, it’s a pretty strange idea, to assume someone who foots the bill for the coming into existence, of huge amounts of anything, has it in mind to hold onto it, allow it to rot in a warehouse, or just toss it out.
What that means is, where the person considered may have plenty of money, multiple homes, large numbers of cars, a jet, and a yacht, he or she likely hits some sort of saturation point along the way.
Further, if the person wants to keep the various things he or she has acquired, he or she must at least not lose enough of the wealth possessed, to make it impossible to maintain standards achieved.
Does that mean the individual in question doesn’t have obscene amounts of property of various kinds? Of course it doesn’t.
That said, in most cases, if you took all that person had, sold it, and gave away the proceeds, you’d be flatly amazed by a couple of realities.
The first is, for how few people, you’d be able to do any kind of meaningful good.
The second would be, how fleeting the effect of that supposed largess would be.
I don’t think most folks consider a third idea though. If a person made his or her money, producing cars, taking all he or she had, would make it impossible for him or her, to continue to do that.
You could just take the excess, skimmed off of the company, and leave the entity itself standing. If you did though, the amount you would procure for your purposes, would be even smaller.
Now again, imagine you’re the person, from whom the money and other resources were being extracted. Why on earth would you continue to work hard, when what you toiled so fervently for, is taken from you, and redistributed to those who didn’t spend the time and effort to amass it?
Truthfully, to some degree, you should be aware such people face this dilemma daily, in the present moment.
After all, how many times have you heard it said? “The rich need to pay their fair share!”
It’s almost invariably true, people saying such things, are proposing ways in which the wealthy can be separated from their wealth.
This is often done, through one of a couple of mechanisms.
The first is obvious. If we simply increase their tax burden, everything will be fixed! Of course, if spending is not reined in, those monies just go to do things like, service existing debt. Put simply, if you spend irresponsibly, the result will be, that you’ll constantly be trying, to dig yourself out of a hole. How successful is that likely to be?
The second is various kinds of government regulations and laws. One excellent example of this, is wage laws. The most common type of such edicts, is minimum wage laws.
They seem like a grand idea, until it dawns on you, that increasing the minimum amount everyone gets paid, cannot help but cause a corresponding increase in prices—but one of a few potential effects. Why? Because somebody (read here, “business owners”) must pay those increased wages.
Unlike what so many assume, many businesses operate with comparatively slim profit margins, and even if they don’t, it’s not necessarily the owners or CEOs, who pocket the profit.
If the company is publicly owned, a large part of the profits, are distributed to investors.
Some such people may be “Wall Street fat cats.” Most though, are people with IRAs and other types of retirement or similar investment vehicles.
“Wait! I have an IRA!” you might be saying.
How do you think it makes money? Such mechanisms, typically invest in successful businesses, and grow based on their performance. The better the companies in question do, the greater the return on investment. The obvious result, is increased yield for your retirement, or other investment account.
Don’t have a retirement account? Don’t worry, in the course of time, it’s very likely you’ll end up with at least one.
After all, even if Social Security does remain solvent—a highly questionable thing—do you really want to retire on what you’ll end up getting from it? If you think that’d be fine by you, I highly suggest, you talk to someone attempting to survive, on that level of income.
Is it true that people who qualify as high earners, often have more than they’ll ever need? Certainly. That said, most of them, are also producing or causing to be produced, those things off which the average person lives. Take what they have, and the question is, “Why should they continue to create things for others?” Let me know when you come up with a good answer.
Thanks for reading, and may your time be good,