What Is It That Makes The Poor Poor And The Rich Rich

What makes us poor?

There are only TWO things which cause the people two remain poorAddictionSatisfactionIf you look at the decline of any person or any company you will see that either they got satisfied with what they had.Or they got addicted to something.Let me first explan how addition causes you to be poor.Addicted means to depend on something so much that it becomes almost impossible for you to leave even if it starts do detroy you. To be rich it is very important to generate or get some assets (money) first and then increase it. But the addictions makes it immposible to increase your money. If you want to become you should work to be rich not to look rich. For example if you earn 5000 $ a month and you want to be rich first you have to fulfill all you necessites(like basic food,clothing,place to live and must have sevices). Then instead if spending money on expensive cloths,food,phone and etc you should try to invest in. Money can be invested in stocks. You and purchase an other house leased by bank and rent it out. You can save some money and start your own small company. The target is to some how increase the monthly income. Now addictions causes you to be poor because you cannot leave the things which cause you to waste your money. Every one has his own addictions which he or she can’t leave. Some people are also addicted to rest and they just cant get out of their comfort zone .You might be thinking that the money in stocks can also decrease and your company can fail but these things will make you better at business and increase the chance of future successAnd now lets talk about satisfaction. You will not care about increasing your income and making your life better if you become satisfied with what you have. It will cause you to be poor or stay poor.Now the question also arises that how can you save your self. To prevent addiction you should live like a poor and and try only to live in about 25 to 50% of your income. And you should continuesly think about future to stay motivated. You may think it is impossible but think about those who earn 50% less then you how do they survive. And to save your self form being satisfied you should set very high targets. And compel yourself to achive them. If you will have high targets then achiving less or not achiving anything will not make you satisfied. And you will continuesly strive to make your self rich.

Are the rich wealthy because the poor work for them?

Adam Smith described in his Wealth of Nations that division of labour is the source of wealth. Thus labour adds to wealth. Prior economists particularly the Physiocrats in France believed that agriculture is the only source of wealth.After industrial revolution the role of capital was emphasized in 19th century Europe. However Karl Marx said that capital is nothing but deferred wages. The capitalists accumulate capital by exploiting the labourers. So according to Marx the expropriators were to be expropriated. It should be achieved through violent means.Marx visualised a state less society. The class less society would result in a stateless society. This was sought to be achieved in former Soviet Union when the Bolsheviks overthrew the Czar in Russia.However, after collapse of Soviet Union the Marxian thinking has lost its relevance. In a capitalisic society land, labour, capital and enterprise contribute to wealth creation. The land owners get rent, the labourers wages, the capitalists get interest and the entrepreneurs get profit.Besides in a capitalisic society the richer persons own more means of production than the poor. Although labourers add to value the employer pays them wages and becomes owner of goods produced by them. It is no doubt that the labourers are underpaid for which the rich persons get richer.Moreover if the labourers are less organised their bargaining strength is less. Thus wage remain low because of low bargaining strength of labourers. However in organised sectors the labourers are better paid due to higher bargaining strength.To conclude we can say that the rich are wealthy because they own more means of production and have better bargaining strength than the labourers, who remain underpaid.

Why is our society designed to make the rich richer and the poor poorer?

The answer to this question is not as simple as some would have you believe. It is true that the choices you make create the results you get. But, where does one learn how to make better choices? Maybe they were lucky enough to have lived and grown up in a family situation where great lessons about choices were taught and finally learned.Some people grow up around or were exposed to people who were observant and thoughtful and taught them how to look for and understand opportunity and how to use opportunities to their advantage.Still others decide that what they’re doing is not getting them where they want to be. They decide to educate themselves by reading and studying how successful people do things.There are many roads to success and many different perspectives on what constitutes success. The process of creating success is made up of many parts. Solving any complicated puzzle requires diligence, persistence, curiosity and time. It takes reading and study. There are no real short cuts, but the sooner you start the sooner you will find new ways to move yourself forward out of your current situation. It’s not society that is designed to keep you poor it’s the lack of processes and alternatives in your knowledge base that keeps you hemmed in. Seek and you will find. The answers are all around you if you but see them.I can tell you from my personal experience that trial and error is the most expensive way to learn. The investment in time and money is very high. Invest in learning from how others have solved problems. It’s much less expensive. Hope this helps. Good luck!