Quote:
|
Originally Posted by Mzyxptlk
I only mentioned that to indicate I didn't need a 14 page economics essay. That said, thanks for the reply, although your scenarios mostly depend on people earning money that already "is". My question had more to do with how wealth is generated, which was answered by ASG already (time = money).
|
No, not at all. Sure, it helps if you've got alot of money already to start with, as it accelerates the process. But, the point is that even a small amount of money will grow faster in a corporation than it will in a bank, and after a long period of time, you have
generated additional wealth that you wouldnt have otherwise. Thus, you become
richer than before, and what an equilivent person would have over the same time period.
Ignore it at your own peril. At 22, "i" own two homes in the world's most expensive city, i have some shares (though not all that many now - i did use my economic training to essentially dodge the crash in the middle of last year by pulling out about this time last year. At the time, i felt really bad as i missed about three months of really high growth, but i'm much happier now), my superannuation is really high compared to most, but ample given my age. My friends are either breaking even (ie, constantly broke) or only slightly positive but still renting or whatever. I am feeling like i'm becoming richer, and thus i'm more willing to take risks which is making me richer still.
Sure, i have three jobs and doing my honours. But at least i'm putting the moeny to good use! As for money that already "is", that's true. I didnt start from nothing. When i was 17 i had about $600 that i had saved up from my pocket money over the preceding 10 years. But that doesnt mean that you cant earn more efficiently.
Wealth is different to GDP, which is different to income, etc. Generating economic growth is probably what you're thinking (?), which involves growing more foodstuffs, mining more resources, producing more products, engaging more services and so on. A wealthy person tends to have alot of assets like property or shares - that doensnt mean that they are
producing much in terms of GDP, they just own more things.
I apologise for misinterpting what you meant.