Have you ever observed,
- Why some people are good at making while others are not?
- Why some people are wealthy and others are not?
There is a misconception about wealth and money. Being wealthy does not imply having lots of money. Wealth means producing things of value and which by no means indicate having lots of money. The key her is value. We all run after wealth and money but the real factor human efforts and economies revolve around is value. Money and wealth are words that seem fascinating where on the other hand value addition or value creation seems boring and dull.
Do you know how value is created?
- By performing tasks
- Developing an idea
- Digging resources
- Engaging in mutually-beneficial commerce
Have you ever tried to understand what Money is?
Money is a store of that value. Typically, when you create some value, you want to trade it for something else of value for survival, so money is a technology used to store and transmit value through time and space.
Remember, value is not always portable or exchangeable. For instance you have an apple farm then the value you have created is in the form of apples. Now the reason why we can’t remove poverty is not because of unequal distribution of money but unequal distribution of value-creating capability. Money is not wealth, and even its equal redistribution doesn’t really change anything. What really needs to redistributed is the ownership of the means of value-creation, which is a far more complicated thing to do.