Monday, September 17, 2018

Scarcity and Poverty...

Scarcity (finite resources, coupled with unlimited human demand) is a basic reality of our physical existence.

Many have noted that poverty ISN'T due as much to scarcity, as it is to non-productivity, and that is largely correct.

The poor, are poor, for the most part, because they make poor decisions. In fact, ironically enough, the SAME traits that violent people are prone to (recklessness, irresponsibility, the inability to plan ahead, poor impulse control) are the same traits that inevitably lead to poverty.

Scarcity is a related, but somewhat different issue (

IF someone...ANYONE could show that, "the rich glom too much wealth, creating more poor people by their greed," they'd; (1) expose a fatal flaw in the market system and (2) show that, "Not only can Socialism's/Marxism's Central Planning work, it must work, as it's our only hope."

Of course, that is NOT the case.

While there IS a finite amount of currency in circulation at any one time, there is no such shortage of wealth.

Real wealth is NOT currency, although it's measured in dollars, etc., it's ideas.

Bill Gates doesn't have $90 BILLION in the bank, nor does Jeff Bezos have $150 BILLION stashed in a bank...they both have a combined, nearly quarter of a TRILLION in VALUE.

In a very real sense, wealthy innovators like them create more wealth, just as Henry Ford did with the assembly line and mass production.

Ford DIDN'T invent the car (that was Karl Benz). Ford invented something far more valuable - mass production. That's why Henry Ford made far more money in his life then Karl Benz did. He sold more cars through mass production.

Currency isn't the primary source of wealth, value is.

Value is found in ideas.

Scarcity...of resources and currency is very real and not at all artificial. It's a basic reality.

Real wealth is created by new ideas, which is why those who merely work, tend to subsist, while those who innovate thrive.

Those who do not work, whether through lack of skills, infirmity, or detesting drudgery are charity cases..."wards of the states." Public assistance is neither a "right," nor an "entitlement" (entitlements are paid for, like Social Security and Medicare paid into through the FICA Tax) it is charity. It's the status of "wards of the state" that make that population most vulnerable.

While innovators like Ford and Bezos hold very real leverage over all of society, the dependent poor, neither idividually, nor collectively , hold any leverage at all.

While there is no shortage of ideas, there IS a shortage of resources that must always be taken into account.

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