Stuart Goldsmith on how to become
wealthy. Stuart Goldsmith takes you through some essential values
you need to follow to become wealthy
"How to Become Wealthy By Creating
Values" © 2003 Stuart Goldsmith
Every honest man and woman should earn their own living
in the free trade of values with other humans. One of the best ways
to become wealthy is to create values which didn't previously exist.
Read that statement again, because it encapsulates the rational
selfishness philosophy.
If you merely trade values, then you make a living
but do not become wealthy and empowered. There is nothing wrong
with this, of course, if that is what you want, but creativity is
the key to riches.
As an example, imagine we are on an island together
with ten other families. Let's trade values. I'll fix your hut roof
for two hours, whilst you husk coconuts for me for two hours. Fair?
Sure. No problem.
Tomorrow, I'll fish for my family and your family
for five hours as long as you collect firewood and water for your
family and my family for five hours. Okay? Yes. No problems here.
There's nothing wrong with this way of going on, and
we could exist for centuries like this. In fact this is exactly
how primitive societies did (and still do) operate. But there is
no progress.
Why is progress desirable? Because without it we are
all still working for sixteen hours a day in mindless, numbing physical
toil - just as people did for centuries, just as they are still
doing now in many parts of the world. The fact that we swap jobs
(trade values) doesn't actually improve our lives very much apart
from a slight efficiency due to division of labor.
Now, let's create some values. Assume all ten families
spend three hours a day collecting fresh water from the distant
mountain stream. As an 'entrepreneur' you see a way of greatly improving
the physical comfort of your family whilst also greatly improving
the physical comfort of every other family on the island.
Indeed, you intend to create an honest, tradable value
which will make you wealthy, but also make everyone else better
off too.
This is the essential point about getting wealthy
through creating an honest value - everyone benefits.
Note one vital principle here. You are not motivated
by altruism to improve the lot of others. You are solely interested
in improving your own lot, and that of your family. You are acting
selfishly. How can you act in any other way? This is what gets you
out of bed in the morning.
You are rational, because you know that the only sustainable
way of becoming wealthy is to create something of lasting benefit
to others (an honest value) otherwise they won't 'buy' it. The only
alternative is for you to use force to enslave the population of
the island to your desires, or to con them out of their values.
Okay, so what are you going to do? Through your ingenuity,
your creativeness and your honest toil during what should be your
rest period, you are going to create a neat piping system of bamboo
cane which brings water down from the stream right into the village.
You plan, you scheme, you work and sweat and toil.
You sacrifice your leisure and a portion of your life. You take
risks - it might not work. You place yourself in danger - the mountain
is steep and slippery. Of course, you need to conduct a market survey,
so you gather all the villagers together and say this:
"For centuries the women have walked two miles a day
to that hill with their water jars to fetch the daily water for
their families. You all know that each family spends three hours
a day in this pursuit. If I could bring you the same water, here,
into the village and you could collect it in five minutes instead
of three hours, would each family work for one hour a day on various
tasks dictated for my family?"
Now of course the resounding answer would be "Yes!"
Note the vital point here: everyone is a winner. Each family gains
two precious hours a day for nothing - absolutely free, for zero
effort on their part. They can use this time to grow more crops,
fix up the hut, or whatever else they want to do. The net effect
is that their lives are enriched and their standard of living rises,
all due to your ingenuity, risk, and discipline.
In return for your effort, ingenuity, skill and daring,
you become a wealthy man. How? Because you now have ten families
working one hour a day for you and so you can 'retire.'
In other words, because you created values for others
which they willingly bought from you, you have freed yourself from
the need ever to work again. There is no money on our island, but
money is merely a token of so many units of human labor.
There are several important points here.
Firstly you did not force anyone to do anything. This
is not slavery. The man who says that modern work is slavery is
a fool who has never felt the lash on his back.
In fact you freed the people from two full hours of
soul-destroying donkeywork each and every day of their lives, and
the price you charged them for these two hours was - zero.
Secondly you did it for you, not for them, and you're
proud to admit it. You're also proud of your water system. You're
trying to add filtration and perhaps design an automatic coconut
husker too.
Furthermore, you are proud of your wealth and your
achievements. It makes you feel good to be alive. You know you created
something of lasting value, and you're receiving the rewards which
you are due. These rewards spur you on to greater efforts which
will make you wealthier and improve the living standard of all of
the villagers.
Also, no villager is prevented from following in your
footsteps, and so you act like a hero or heroine leading others
on to greater efforts.
Perhaps another villager will be inspired enough to
start making boats in his free two hours - the two hours which you
created for him and gave to him free. Now we can all go to where
the fish are plentiful - by 'renting' his boats, of course.
Instead of spending three hours fishing, we now spend
one hour, and pay him one hour in rent. So we are all better off
to the tune of another hour a day, with no drop in living standards.
In other words, we work less hard for the same amount of fish and
fresh water. Or, of course, we can choose to work the same hours
as before and get more fish and fresh water. In other words, everyone
has become wealthier
Stuart Goldsmith
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