Most people think of wealth and money as finite things, but in reality, wealth is infinite and it is actually possible for everyone to be wealthy.
The reason why this is true is because wealth is actually created by producing value and the movement of money.
To give you a demonstration of how this works, let’s simplify it down to a smaller number of people and dollars. Let’s say we have 100 people in the world, and a total of $100 of currency in the world. This would mean that for every person, there is $1 in currency.
Lets’take this demonstration to a variety of economic systems and see how it works in each:
- Society with Scarcity Mindset
- Society with Mandatory Wealth Redistribution
- Society with Prosperity Mindset
Example 1: Society with a Scarcity Mindset
If you have a society where people have a mindset that wealth is scarce, people tend to horde their wealth, and taking advantage of people to get more wealth. Here you typically wind up with the top 1% or 2% of the people having most of the money, while the rest have to fight over the pennies. And the wealthy don’t even realize that they could be even richer if they allowed the money to flow, giving everyone more money to spend.
You typically see this in countries where most of the wealth and opportunity are in the hands of the ruling elite.
In such an unbalanced system, people start looking for alternatives to redistribute wealth more equitably.
Example 2: Society with Mandatory Wealth Redistribution
One reaction to a society with a scarcity mindset (or one with unequal distribution of wealth) is Communism, which attempts to treat everyone equally, or Socialism, which seeks to redistribute wealth from the rich to the poor, in varying degrees.
If we distributed the currency evenly to every person, or redistributed the wealth of the rich to the poor, every person in the world would have approx. $1, depending on how evenly the wealth is redistributed. Such a system helps ensure that everyone has what they need, however, since the system is designed to regulate how much everyone is allowed to have, there is a cap on how wealthy each person can be.
But what if there was another way?
Example 3: Society with a Prosperity Mindset
If you take a look at how money works, it is actually possible that everyone can become wealthy by each creating increasing value and exchanging that for money.
People can create value in a variety of ways, which can include having certain skills that an employer or another person might need, or creating a new invention, or starting a business, or writing books, or teaching or anything that is valuable to someone.
Let’s say that we once again have 100 people with only $100 of currency in the world. Instead of evenly distributing it, or having people horde it, what if everyone created value and got compensated for it. If the first person has $100, and they give it to the next person in exchange for something $100 in value, and they did that for every person there is, we would no longer have only $100 in the world. Everyone would be $100 richer with either $100 in their pocket or $100 worth of goods and services, turning that $100 into $10,000. Repeat the cycle to create more wealth.
While the example obviously won’t work as smoothly in real life, due to competing factors and influences, it does serve to demonstrate that creating wealth and the movement of money does have a positive influence on society. If we can encourage these positive influences, and mitigate the negative influences, we would have more wealth for everyone.
The key to a prosperous society is having individuals create value, and by encouraging the movement of money, while mitigating things that negatively affect wealth creation.
A Wealthy Society is made of Wealthy Individuals
You can’t have a wealthy society without wealthy individuals. As an individual, you have to improve yourself and ask yourself what value are you creating in exchange for the money you wish to receive, and then take action. As a society, we need to encourage people to create value, by encouraging education and small business and policies that encourage the movement of money.
We can all be rich, if we stopped thinking wealth was scarce. Wealth is actually abundant, and isn’t just measured in money.