Randall E asked:


Total tax revenue, and spending on social programs, have both INCREASED, and increased DRAMATICALLY, under Bush.

And so has the share of the tax burden paid by the “rich” – whether you consider “rich” to be the top 1%, top 5%, top 10%, top 20%, top 25%, or top 50%, the proportions of the tax burden paid by these groups have gone UP since the Bush tax cuts, to the highest levels EVER.

So, how would raising tax rates, which would reduce growth, reduce job creation and possibly reduce tax revenue, effect a redistribution of wealth?

Uh, but Caesar dude, Bush CUT taxes for them too, and their share of the tax burden went DOWN. And tax REVENUE went UP.

Fox

There’s an age-old rule of thumb that is well-known in circles of wealth creation; the 80/20 rule. In effect, the 80/20 rule just proves something you probably already know, but recognizing the 80/20 rule serves to liberate individuals interested in creating wealth, helping them to move on to bigger and better things.

The 80/20 Rule In Wealth Creation

What is the 80/20 rule? It’s a way of understanding the distribution of wealth; a way to put wealth-holding in perspective.

The 80/20 rule in wealth creation is this:

- 80% of the people in the world make 20% of the money; in other words, in terms of wealth distribution, a scant 20% of the wealth in the world is divided amongst 80% of the world’s population – and in gross disproportions at that.

- 20% of the people in the world make 80% of the money; in other words, in terms of the distribution of wealth, a whopping 80% of the money in the world is controlled by a miniscule 20% of the population.

Many exerts in the wealth creation field will refer to this rule not as the 80/20 rule, but as the 90/10 rule. That’s because they believe the distribution of the world’s wealth to be even more disproportionate, with 90% of the money in the world being controlled by a mere 10% of the world’s population.

This hardly seems fair, and in fact there is little fair about it. But as long as there are free markets, there is money that can be made by that 80% of the population, and those percentages certainly can change.

Tipping The 80/20 Scales

Realistically, then, what can the average person do to make money and create his or her own wealth? Is this even possible? Or are these percentages set in stone, incapable of changing?

Of course there is opportunity to change, at least for those in the “free” world. Average men and women the world over can educate themselves and learn the ways to make money, to build wealth and financial freedom of their own. But they have to take the initiative.

There are excellent wealth creation programs online (and off) for building personal wealth. Sure, there are scams, too, but there are a number of proven, successful programs for creating wealth that have made regular men and women in many nations rich – free from the stresses of the working life, stripped of the confines of the “rat race”. It does take a little effort to study these programs and decide upon a winning equation for financial success that will work for the individual, but assuming that the right financial wealth-creating program has been identified, there is more for the successful wealth builder to do.

The successful wealth builder puts forth a passionate effort.

Not a careless effort; not a haphazard effort; not a half-hearted effort; a true effort. Successful wealth builders the world over have one thing in common (and it doesn’t matter what kind of system for making money he or she is using). The ones who get rich set their minds on a goal, and steel themselves to the work that must be done. They do what it takes, and it pays dividends.

The one thing everyone likes to say relative to wealth creation is that “if it sounds too good to be true, it probably is”. While this may apply to get-rich schemes, it does not apply across the board to wealth creation. Wealth can be made as long as the person is willing, and is passionate about their goals. Great money making opportunities are out there, and they do not have to cost a lifetime’s worth of savings or consume every waking minute of the day (although admittedly, success is proportionate to effort expended, so long as that effort is expended efficiently).

To sum it up, the 80/20 rule is not written in stone. It can be changed. It can be 50/50. But as long as people believe that they cannot create wealth of their own, and as long as people are resigned to putting out the effort, the 80/20 rule, or something very close akin to it, will endure.



By: Sean Rasmussen

About the Author:

James

Only by having a wealth creation strategy in place is it possible to become wealthy. So many people work at becoming wealthy with no clear objective in mind other than they want to be wealthy. And most of them fail. Just like you can’t build a house without a blueprint, you can’t become wealthy without having clear outline of wealth strategies to get you there.

Of the many wealth creation strategies out there, perhaps the most basic is to first of all buy a home. Real estate is the cornerstone of the most successful wealth strategies. So a first step in becoming wealthy is to become a homeowner.

Next, you will want to consider any disposable income and look for investments you can use it for. Having money in a savings account may make you feel secure and wealthy, but it isn’t doing any real work toward making you wealthy. Even investing small amounts is an important wealth strategy.

Perhaps the most important of all wealth creation strategies is discipline. It takes discipline to achieve wealth. It’s hard not to take that disposable income you have at the end of every month and spend it on little luxuries. It’s also hard not to take the nest egg you’ve built up and splurge on the vacation or sports car of your dreams.

But if you truly want to become wealthy, then you have to have the discipline to invest your money rather than spend it.

You may also want to take courses in financial and investment planning. There are many excellent courses available online and through your local colleges and universities that can teach you invaluable wealth creation strategies.

The more wealth strategies you are aware of, the better off you will be in deciding what the best ones are for meeting your financial goal of becoming wealthy.



By: Mika Hamilton

About the Author:

Ezra

Martin P asked:


I have a project for english class involving the creation of my own writing handbook for students of philosophy, and I need to write an intermediary paper that requires the citing of three academic journal articles on the subject. I have had NO luck finding said journal articles, and any help would be immensly appreciated. More specifically, the assignment is to write a paper providing the rationale for the arrangement of my handbook, that is, justification for what I choose to include and what I decide can be excluded. Apparently there is a wealth of research that has been done on the subject, I just need guidance finding it.

Ramsey

Andy asked:


When I consider the genetic improvement of our race in the areas of intelligence, success, wealth creation, and wisdom (advanced traits), I would prefer to see the evolutionary domination of the genes of those individuals who best exemplify those traits. Now I’m not talking about any kind of government intervention, but instead about the nature of people to have fewer children (0-2) with more advanced traits, while those of less-advanced traits seem inherently more interested in creating large families (5-12 children). This trend seems to inherently be inversely tied to the level of advancement of these good traits. If this continues, evolution dictates that our species will not evolve any further with the protection of the lives of the genetically less-advanced or problematic because their genes will dominate.

So I ask you, if our species is to advance evolutionarily, should not our best people have large families? Yet nature seems to bring us to act contrary to evolution. Why?
I’m not saying that society should do anything to affect the sizes of families .. that’s very wrong to me. All I’m saying is that I typically see college graduates and more wealthy people marry later in life and have very few children, while those in the ghettos and those with little education or financial wisdom seem to propagate like there is no tomorrow (sometimes without regard for the institution of marriage). In the end, the genes and training (nature vs nurture) of the more-successful is dwarfed by the less-sucessful, and evolution prefers the continuation of the latter. I’m assuming that the traits of the parents are passed on to their children, if not through genes (which seems to me to be a large part of our intellectual evolution), then at least through training and development.

Hugh

 In my last article, we are able to establish the fact that everything we need to create wealth is already within every man. Another important key to wealth creation is creating value. It is high time for you to understand that wealth is not something that is distributed randomly by a god somewhere to a few chosen people, NO!. In your quest for creating wealth, you have to learn and understand ways value is created. This is fundamental to wealth creation. 

     You have to create something of value for others. Something that will solve people’s problem. Creating wealth is simply creating solutions to a certain problems for people. This is the fundamental of wealth creation.

     Money is nothing but a medium of exchange for value. The level of wealth you will create is determined by the values you are able to create. This is the foundation of creating wealth. Business or individual will make more money when they find ways to add value to other people.

      The amount of money and wealth in your life is a direct reflection of the value that you add to life. There are two ways to creating value. This is either through the creation of goods or services to meet the needs of others. For example the invention of Microsoft software has unbelieveably transformed every aspect of our lives and this product has brought massive wealth to the founder of Microsoft.

     There is no magic formula to the creation of wealth.The definition of wealth is value, how much you get paid is a reflection of how much value you create for people.Don’t think of how much money you are making, think of how much value you are creating, think of the value you create for people and the money is just a by product of that value. See you at the top



By: ATANDA BABATUNDE ISREAL

About the Author:

Kyle

Create wealth using the one rule that trumps all other investing advice. Want a hint? Warren Buffet uses this rule to make billions.

Late at night, throughout the bars of Wall Street, the professionals must argue long as to what is the one best investing rule to further their careers and riches. Is it ‘use hedge funds’? Or is it ‘diversify’? How about ‘be patient’? No, no, surely it’s ‘buy low, sell high’!

Do you have a favorite? Have you retired on yours yet?

While I counsel all investors to diversify, be patient, and buy low and sell high, none of these are exactly the one rule. Heaven knows that chasing the fad of the day – hedge funds – isn’t the one rule either.

The one rule used by Warren Buffet and scores of other billionaire investors is to invest based on fundamental stock values such that you are, in effect, certain of buying at a low price. In fact, not only a low price, but at a discount to the real value of the stock.

Buying stocks at a discount based on their fundamental values is called value investing. It’s Warren Buffet’s style and it can be yours too. The theory and approach were first defined in a seminal book written in 1934 by Ben Graham and David Dodd called ‘Security Analysis’. This book is the bible of this wealth creation method.

Value investing finds stocks in public companies that trade at discounts. The discounts can be to one or more of several tangible, accounting-oriented measures: to book value or tangible book value, have high dividend yields, have low price-to-earning multiples or have low price-to-book ratios.

This style of investing requires careful research and discipline to implement, but is one of the highest returning and safest methods around, because when you do buy, you’re buying at 80 cents on the dollar, or even 50 cents. Then you just wait for the rest of the stock market to recognize that the company is under priced and they drive the stock price up.

Now I don’t recommend that you buy the Graham & Dodd book, get a Masters in Finance, and screen thousands of stocks yourself.

There’s an easier way. Select a couple great mutual funds that practice value investing. There are quite a few out there. While you’re at it, make sure you select one with low costs and good track record. Then you’ll have a room full of professionals at this fund scouring the earth for their next value investing home run.

Additional good steps include using file sharing, free printable time sheets, and finding discount home insurance.



By: Gary Hayduk

About the Author:

Kenway

truthisback asked:


The economy works the way Adam Smith, David Ricardo, J.B. Say and Josef Schumpeter said it does. Private enterprises generate profit by allocating resources the way consumers want – the price of the resources is driven by other uses, thus if you can generate a greater profit from one use than from another, that means the consumers, in the aggregate, want them put to that use.

Profits tell producers what to produce. They tell investors where to invest capital. Reinvestment of profits is the most efficient way to fuel growth / wealth creation. The more you tax profits, the less reinvestment, the less ‘natural’ growth, the more the Fed, politically, must fuel growth artificially and temporarily via monetary means, ultimately producing inflation (1930s-1970s).

Tax cuts allow the economy to reinvest its own earnings and grow naturally, allowing the Fed to focus solely on inflation and maintain stable prices, thus creating long expansions (1980s-Today).
Gotta be the Lib quote of the week – “who the heck is Josef Schumpeter” – - – - while posting an opinion on economics…… Kind of like spouting off about baseball and then asking “who the hell is George Brett?”

Grover

EJAM1983 asked:


Finances- wealth creation

Gregory