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Index » Finance & Banking » Escrow Agents
 

Why the Minority are Rich

 
Author: Yigit Djevdet
 

Scientific Explanation of Wealth
Wealth is a very contentious subject because almost everyone has a view on it. It is an ancient question which boasts answers in almost every corner of knowledge and experience. There is the scientific explanation, the spiritual explanation, the economic explanation, the psychological explanation and the plain old weird explanation. In this article, I'm going for the scientific explanation.

This pays no attention to who we actually are when we start out in life. It simply says that there is only a finite amount of resources in the world and the capitalist system of wealth creation functions as a hierarchy resembling a pyramid. The lower levels house the majority of people who toil day and night to support the minority levels above them.

The Pyramid Model
Consider a pyramid at the top of which sits the worlds richest man. Below him the next 100 and below them the next 400. Using a criterion of 100(n x n), where n represents the next level, we find that the people at the very bottom, some 32.5 million of them, are 570 levels below the top. If we now add the people at each level we come to 6.1 billion which is approximately the population of the world. So you see, if the pyramid is to exist we MUST have people at different levels of wealth.

Clearly it is possible to rise through the levels, as well as drop to ones below. We are all capable of going down because it is very easy. Just squander all your money, make a bad investment, give it away etc. and before you know it you are at ground level. The trick is to go up. So we inevitably ask the obvious question.

How do we go up
It's almost like a console game. Rising through the levels and reaching some eventual goal. I suppose if we must continue the analogy, the difficulty level we set ourselves has to be the different methods open to us and which of these we select to use. But that is for another article.

As it turns out it is perfectly possible to receive a helping hand from those above you as well as a friendly push from those around you. A combination of both will make your job easier. Examples of getting a helping hand from above are people like relatives who will lend you capital without the urgency of paying them back or even a free handout. Perhaps some kind of inheritance will help. If none of this is open to you, your job is somewhat more difficult. You need to rely on those around you who are at the same level as you and they cannot afford to give you anything substantial. So you have to create something and sell it to them as well as those above you. If you are successful, your bank balance goes up and so do you. I've deliberately left out "bank borrowing" because I believe one should avoid this method of raising capital simply because the chances are that the loan will require to be paid back before you have made enough money to pay it back.

Just thinking about it makes it obvious that if you want to go up in this world and your relatives cannot help you, not many people know you, and there is no incentive for anyone from above you to help either, you have next to no chance of ever rising above the level that you find yourself. Options like gambling and lotteries are the only possibilities left but the odds simply make these things not even worth mentioning.

The key to it is publicity. You need to do or create something, within the law, that will touch large numbers of people. It really does not matter what it is. Even if it is something as simple as helping people fill a glass of water, it can create this publicity for you or for your product. In the case of fortune through fame, you yourself are the product. I'll leave you to ponder this.

 
 
 

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