Friday, January 9, 2009
Innovation
People are poor due to lack of innovations. Specializations, innovations are the key to prosperity. If you have a group of people all doing basically the same stuff, then who would buy from who? If everyone grows vegetables, rear chickens, make some basic clothes and build huts, how is this economy going to support itself for a million people? As more and more people are born, they need more and more stuff to do so they will not be useless. Humans will create all sorts of things to keep themselves occupied. That's why we have all sort of sports, entertainment, religions, crafts etc x infinity to keep people busy and relevant. Poor people just do what everyone is doing. To get out of poverty, you need to differentiate yourself.
Poor people only know how to spend money
People are poor because they do not understand the concept of investing. They only know how to earn money by doing work(usually manual repetitive work). With the money earned, they buy something to eat, to consume, creating a profit for someone else. The concept of investing, which is to earn more money from the money you own does not cross their minds.
Trading is the simplest way to learn what is investing. You buy something and sell it for a higher price. PROFIT is the key. And then you repeat it. Small timers trade cheap goods, big timers trade expensive goods or trade cheap goods in HUGE volume. It is that simple. They key point is that you do not consume what you own, but use it and a bit of your work and brains to make your asset worth more.
Trading is the simplest way to learn what is investing. You buy something and sell it for a higher price. PROFIT is the key. And then you repeat it. Small timers trade cheap goods, big timers trade expensive goods or trade cheap goods in HUGE volume. It is that simple. They key point is that you do not consume what you own, but use it and a bit of your work and brains to make your asset worth more.
Poverty in Indonesia
In response to this clip
http://www.youtube.com/watch?v=E_miXqjTOzA&feature=related
The reason people are poor is due to their mindset. They don't strive to dig their way out, to seek out self-education, to learn the ways of the rich, to seek out how to trade, to build network, to save, to invest. They see money as something to spend to make they happy. They get a bit more and they buy a tv. They have children when they can't afford to have them. No wonder they are poor. And no one cares to educate them. Who cares? Otherwise who's going to do the dirty work?
http://www.youtube.com/watch?v=E_miXqjTOzA&feature=related
The reason people are poor is due to their mindset. They don't strive to dig their way out, to seek out self-education, to learn the ways of the rich, to seek out how to trade, to build network, to save, to invest. They see money as something to spend to make they happy. They get a bit more and they buy a tv. They have children when they can't afford to have them. No wonder they are poor. And no one cares to educate them. Who cares? Otherwise who's going to do the dirty work?
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