Saturday, February 7, 2009
WHAT CREATES WEALTH?
I’ll tell you in layman’s terms from my own creative thinking. To better highlight the age old question, what really creates wealth I’ll make my point using a metaphor? Most of us have heard the saying “No guts no glory.” So, I think a similar metaphor will hit the nail on the head concerning what it takes to create wealth. Here is the new metaphor I’m creating to best highlight what it takes to create wealth: “No risk takers no wealth.”
High taxes and too much government regulation can wipe out the incentive to take risk, because the reward will not be worth the risk. Why bother, why should I bust my tail off when someone not doing anything receives an equal reward. That is socialism; it always ends up making everyone equally poor. But, that is where we are headed, full steam straight ahead into full socialism.
There never has and never will be a rich and prosperous country without a lot of rich people. If I had to choose just one type of people that creates great wealth in a nation it would be risk takers. And the greater the reward the greater the wealth produced. Sure, a nation’s government can become rich from selling a natural resource, but that is not created wealth the people will still remain dirt poor.