WEALTH, Is It Important?
How can we increase wealth and do we need anymore of it?
“Imagination is more important than knowledge. For knowledge is limited, whereas imagination embraces the entire world.” Albert Einstein
A World with No Growth
So let us imagine a world where there is no growth, that the wealth there is now stays where it is. How does that sit with you?
Progression is a natural process, water naturally flows downhill, gathering as runoff from rains in the mountains, collecting as streams, then to rivers, then to seas. There is always flow.
For when water sits still, it stagnates.
So imagining a world without growth is imagining a stagnant system, better to imagine a world with growth, where wealth grows. How does that sit with you?
How Much is There?
It is estimated that there is $500tn in wealth globally (at time of writing). With 1% of the world’s population holding 40% of it and 50% holding 1% of it.
Why Pyramids?
A pyramid is a naturally occurring shape, tip a bucket of sand upside down and the sand will fall naturally into a pyramidal shape. All pyramids have an apex and a base.
Within the concept of wealth this is no different and why should it be? The question is how steep is the pyramid, how acute is the difference between those at the bottom and those at the top? Could it be more evenly distributed, should it be?
“The main event isn’t Bitcoin. It’s using the blockchain to disrupt other industries and Wall Street.” — Patrick M. Byrne
Taxation
Using a severe taxation to redistribute wealth will only stifle growth, effectively damming the river and allowing the water to stagnate. To broaden the base of the wealth pyramid the ability, knowledge and key, imagination to grow wealth and its distribution is the key.
The Who, The How, The Why
Who historically has driven growth within our societies? In Matt Ridley’s book “The Rational Optimist” he argues that human existence has benefited from commercial enterprise. Whether that is trading shell necklaces for stone axes, or money for services. The human race develops in its ability to specialise in areas that are of value to others.
Entrepreneurs are drivers in the continuing development of the human race. The ability to spot opportunity, develop valued services, convey ideas and have the all important imagination to see things differently are key factors in our continued development.
To go beyond the ‘idea’ the entrepreneur needs capital.
How have entrepreneurs traditionally raised capital? Although remaining self funded for as long as possible is best and only around 7.5% of those funded by Venture Capitalists (VC) return anything significant for the VC, this is still a common form of funding. We also see funding coming from Banks, Kickstarters/crowd funding, Friends, Family and Fools.
Entrepreneurs have the ability to deal with the uncertainties of risk. To find solutions to the problems they face and when they have a service they offer will be finding solutions to other peoples problems.
There is a better way to raise funds.
Why is wealth so important? Wealth is a by product of growth, growth sees us continuing to develop and not stagnate. Can we all grow at the same time?
Yes. If we believe more of Matt Ridley’s book then overall population growth will stabilise, living conditions will increase across all countries and peoples, food production will increase yields on smaller acreages and overall we’ll be in a better place than our ancestors. I agree with this view.
“Money makes money. And the money that money makes, makes money” — Benjamin Franklin
If the distance between those that have and those that don’t have becomes too great then social unrest becomes an ever present threat. Those that have, become worried that what they have will be dispersed to those that don’t have. Those that don’t have, want more of the life that those that have, have.
WEALTH Platform — Having a Social Impact
The knowledge that wealth creates wealth via its compound effect is why we created the WEALTH platform. www.jcf.world
It provides answers to key questions:
- How can investors invest safely in entrepreneurs?
- How can entrepreneurs get access to international investment?
- How can this process provide wealth for all?
We know that entrepreneurs at some point will invest into other entrepreneurs, they recognise the process, the solutions, the mindset, the characteristics needed for success. But not every entrepreneur can fund one project.
The beauty of kickstarter/crowd funding platforms is they allow many to invest small amounts, into projects they wouldn’t normally have access to.
So the chance to disrupt the current funding cycles and provide a means for real wealth to be distributed is already upon us.
- Imagine a means to place an investment in a project knowing the project itself either has a social impact, or a percentage of its profits will have a social impact.
- Imagine automatically passing an asset on so that the recipient can then take advantage of the compounding effect of its growth.
- Imagine being a part of something that is actively designed to grow wealth for oneself and others, with a core principle to gaining 1bn people with a basic income by 2040.
If you can imagine this then the WEALTH platform is already working towards this and is welcoming contributors both financial and viable projects to develop.
Answer the Questions
So to answer the first question: WEALTH is it important? Well, yes I’d say so. Particularly as it is the name of the platform described above.
To answer the second question: How can we increase wealth? By using the compounding effect of wealth creates more wealth. Helping people who have little to no wealth gain a foot hold on that ladder, with an understanding of its rules, will ultimately create more wealth and growth.
To answer the third question: Do we need anymore wealth? Yes, as wealth is an indicator of growth, growth being an indicator of progress and development. These factors, this process of increased specialisation is how our collective society continues to prosper.
For more information click the link www.jcf.world
