Decoding the Real Truth about Wealth and Millionaires...A "Why they're Rich and You're Not" Debate

[Costa]

Why are few people rich while most of us are not?

You probably know the answer; 90% of people are lazy, envious, have a broke mindset, and whatnot.

But, is that right? I mean, sure, there are some people who fit that statement, but what about people who lack resources? People living in war-torn places in Africa or countries destroyed by communism, such as Cuba, Venezuela, etc.

And what about people like you? You work hard, you're smart, you have a good mindset, and you even have some contacts... but why does wealth seem so far?

This forum has come to one of multiple conclusions that "execution is what differentiates winners and losers, rich and poor."

Even if that's true, what exactly is "execution"? Is it about getting things done? Doing the right thing at the right time? Productivity? Consistency?

Don't get me wrong; I'm not saying this is wrong because this is not a rant.

I'm just trying to spark a debate to find what is real, because this world is incredibly vast, and people are extremely diverse.

My goal is to research and eliminate all biased answers because we, the people, have cognitive biases, and we let them unconsciously become a part of us.

----------------
Reality is extraordinarily complex.

We tend to oversimplify everything to feel safe and in control, even if it's a lie.

If you go outside, you'll see that people nowadays are frighteningly delusional.

However, we need to understand something first.

(This is very important because this is how we can understand wealth and why so many people try to become wealthy and fail.)

Correlation vs Causation:

Causation: the process of causing something to happen or exist.

Correlation: a connection or relationship between two or more facts, numbers, etc.
----------------
Let me give you an example:

Theoretical Statement: People are rich because they are well-educated.

Do people with degrees usually have more money? Yes.

Do people without any degrees usually have less money? Yes.

Does that mean getting well-educated automatically makes you rich? No.

The evidence shows that this fact is a correlation, not causation.

Short Version:

Imagine you're studying wealthy people and investigating whether having more education is linked to having more money. You find a positive connection between education level and wealth – often, people with more education also have more money. However, having more education doesn't guarantee wealth. Other factors like job opportunities and connections also play a significant role. So, the connection we see is called "correlation," but it doesn't mean education directly causes wealth.

If you hit your hand with a hammer, in 99% of cases, it will make you feel pain. This is causation. One thing directly causes another.

Detailed Version:

Imagine you're conducting a study to understand whether there's a correlation between education level and the wealth of people considered "rich." You collect data from a sample of wealthy individuals and record their highest level of education (measured in terms of degrees obtained) along with their net worth.

After analyzing the data, you might find a positive correlation between education level and wealth. This means that, on average, individuals with higher levels of education tend to have higher levels of wealth. In other words, as the level of education increases, the wealth of these individuals tends to increase as well.

However, it's important to note that this correlation doesn't necessarily mean that education directly causes wealth. Other factors could be at play, such as career opportunities, networking, access to resources, and more. Correlation helps highlight a potential relationship between education and wealth, but it doesn't establish causation.

If you hit your hand with a hammer, in 99% of cases, it will make you feel pain. This is causation. One thing directly causes another.

========

If 90% of millionaires wake up at 5 am every day.

And you wake up every day at 5 am, and magically you become a millionaire. Congratulations, you've discovered causation. (Sarcasm)

Wait? That's not realistic? So you're telling me that doesn't happen in real life? Well, that's a correlation.

Why do so many people try these crazy habits expecting them to make them rich?

Because wealth and reality are such complex topics, we need to consider some elements...

There might be more or I might be introducing the wrong elements, so consider this just a theory.

• Economic and Political Background (like Social Mobility)
• Market Dynamics (like Supply and Demand)
• Actions (and their context) taken by people who achieved wealth
• Luck and Randomness
• Your personal skills, personality, character traits, attitudes, traumas
• Social Psychology and Biases

And how all of these correlate to find if there is one or more factors that could potentially be a cause of wealth.

I would like to add other things like Emergence and other concepts, but I don't want to make this longer.

(Or) if there's no direct cause of wealth and if you need a set of elements that need to correlate in order to become wealthy.

Imagine there's a bunker with gold, but you need to enter a password that resets every day. (Like in the movie Maze Runner)

In my opinion, I think the first option is the correct and true one, but instead of just one thing, there are some things that together make the cause of becoming wealthy, just like how buns, lettuce, tomato, meat, cheese, and sauces come together to create a burger.

But that's not all because this is ambiguous, and I want to find the step-by-step process of accomplishing all the requirements to create that cause.

Otherwise, I'll be like this meme:



--------------------------------

We know that if we jump from the 55th floor of a skyscraper, we will die. You don't have to be an expert to know that fire will burn you.

It's more likely that the children of the wealthy will be rich, and the children of the poor will remain poor.

Now you might say, "What about self-made millionaires?" Well, you should delve deeper into these self-made millionaires because people miss some important things.

It's not the same to become rich from a middle-class background as it is from a poor background.

It's not the same to become rich in a capitalist country as it is in a communist country.

And don't get me wrong, this is not an excuse; I'm just trying to explore the odds and possibilities.

----------------

This is just the beginning, but I want to make sure to avoid misconceptions and keep this research as clear as possible (for you and me).

So, here are some biases that are important to be aware of and avoid to get a clear result:

• Narrative Bias
• Fooled by Randomness
• Survivor Bias
• Hindsight Bias
• Authority Bias
• WYSIATI (What You See Is All There Is) and Anchoring Bias

A little example:

Authority Bias: A millionaire can claim that their success formula is dancing naked in their garden and worship the sun.

I'm not a millionaire, but just because I'm not a millionaire doesn't mean I'm wrong; I could be right.

----------------
I created this post so as not to lose the idea, bring up some debate/conversation and to continue my research in the future. To be completely honest, I was pissed of fabout something and tried to channel my anger into something productive instead of complaining about how unfair life is.

 

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[Jeix]

I think your entire argument can be summarized with: the law of affection always applies, no matter where. Waking up at 5 am or reading 800 books a day does not leverage the law and therefore has no correlation with wealth.
Living in a big city with lots of connections and opportunities does, that's why town people are always richer than those who live in the countryside or in less populated areas.

The difference between rich and poor people lies in how much each group is able to leverage the law of affection, no more, no less. One job and nothing else means little pay. A medium sized business with tens of customers every month means quite the take.

You don't need a phd to do it, it's just more likely you'll do it with better connections and you are likely to get those by living in a big city in a rich country.

My advice if you live in a developing country is to go live in a big city (preferably the capital) and start making friends there. Go where you can leverage the law the most.

 

[Johnny boy]

Holy shit all this crap about hammers and drawing owls.

You do not have a lot of money because you have not taken a lot of money... From either a small amount of customers paying you a lot, or a lot of customers paying you a little, or a lot of customers paying you a lot.

Hundreds and hundreds of people paying me thousands per year means I get paid hundreds of thousands per year. Makes sense?

When we had 50 customers I made a lot less.

When we have a few thousand customers I will do burnouts in a black 458 and flex on all u broke bois because I'll be making a few thousand times thousands. Blah blah something around a few mil.

And I won't be much smarter, or execute harder, or be much wiser, etc. I'll just have more customers.

Yes, I'll need to be a better manager in order to manage 50 people instead of 15. I'll have to manage an office of sales/service/admin reps and be organized.

But it all just comes down to the fact that you get paid more when you....get paid more.

Your solipsism makes you think that you need to be smarter to be richer. You need to work harder. You need to network and learn. Etc.

You just need more money coming in.

Just go get more customers.

Money is numbers. It's a formula. You make x amount from 1 unit sold. Sell it. Now sell more. Make more money by selling even more. There's a good chance you haven't tapped out your market, so just get better at acquiring customers and keep making more money.

If you are broke it's because you are in a vehicle that will never scale (having a job), or you ARE in a good vehicle (scalable business) and just need to acquire more customers.

If I start any business my primary concern is HOW I'll get the customers.

If I could have a guaranteed method of grabbing attention for nothing and getting my target market's attention, I would kill it in any business.

The second great reason people are rich and you're not is TIME.

A good business does not tie income to your time.

BUT, you cannot snap your fingers and build it to be that way instantly.

Building takes time. It takes fixing mistakes, testing, doing some things manually. It takes time. Not everyone will always be in the market for what you sell tomorrow. It can take years to build up customers, a reputation, etc.

And then the profits from that increased business success only build up more with time.

Someone growing a business for years, and turning that money into more money for years, will be so much richer than you. Even if they aren't smarter or harder working, they can just be a bit older than you and make you look poor.

It still all circles back to logical math. You have less because people have not given you much. Whether it's from not a lot of people, not being a lot of money, or from it being not a very long period of time. Either one will be the reason you're poor. More customers, more money per sale, longer time. The three variables.

 

[Kevin88660]

Why are few people rich while most of us are not?

You probably know the answer; 90% of people are lazy, envious, have a broke mindset, and whatnot.

But, is that right? I mean, sure, there are some people who fit that statement, but what about people who lack resources? People living in war-torn places in Africa or countries destroyed by communism, such as Cuba, Venezuela, etc.

And what about people like you? You work hard, you're smart, you have a good mindset, and you even have some contacts... but why does wealth seem so far?

This forum has come to one of multiple conclusions that "execution is what differentiates winners and losers, rich and poor."

Even if that's true, what exactly is "execution"? Is it about getting things done? Doing the right thing at the right time? Productivity? Consistency?

Don't get me wrong; I'm not saying this is wrong because this is not a rant.

I'm just trying to spark a debate to find what is real, because this world is incredibly vast, and people are extremely diverse.

My goal is to research and eliminate all biased answers because we, the people, have cognitive biases, and we let them unconsciously become a part of us.

----------------
Reality is extraordinarily complex.

We tend to oversimplify everything to feel safe and in control, even if it's a lie.

If you go outside, you'll see that people nowadays are frighteningly delusional.

However, we need to understand something first.

(This is very important because this is how we can understand wealth and why so many people try to become wealthy and fail.)

Correlation vs Causation:

Causation: the process of causing something to happen or exist.

Correlation: a connection or relationship between two or more facts, numbers, etc.
----------------
Let me give you an example:

Theoretical Statement: People are rich because they are well-educated.

Do people with degrees usually have more money? Yes.

Do people without any degrees usually have less money? Yes.

Does that mean getting well-educated automatically makes you rich? No.

The evidence shows that this fact is a correlation, not causation.

Short Version:

Imagine you're studying wealthy people and investigating whether having more education is linked to having more money. You find a positive connection between education level and wealth – often, people with more education also have more money. However, having more education doesn't guarantee wealth. Other factors like job opportunities and connections also play a significant role. So, the connection we see is called "correlation," but it doesn't mean education directly causes wealth.

If you hit your hand with a hammer, in 99% of cases, it will make you feel pain. This is causation. One thing directly causes another.

Detailed Version:

Imagine you're conducting a study to understand whether there's a correlation between education level and the wealth of people considered "rich." You collect data from a sample of wealthy individuals and record their highest level of education (measured in terms of degrees obtained) along with their net worth.

After analyzing the data, you might find a positive correlation between education level and wealth. This means that, on average, individuals with higher levels of education tend to have higher levels of wealth. In other words, as the level of education increases, the wealth of these individuals tends to increase as well.

However, it's important to note that this correlation doesn't necessarily mean that education directly causes wealth. Other factors could be at play, such as career opportunities, networking, access to resources, and more. Correlation helps highlight a potential relationship between education and wealth, but it doesn't establish causation.

If you hit your hand with a hammer, in 99% of cases, it will make you feel pain. This is causation. One thing directly causes another.

========

If 90% of millionaires wake up at 5 am every day.

And you wake up every day at 5 am, and magically you become a millionaire. Congratulations, you've discovered causation. (Sarcasm)

Wait? That's not realistic? So you're telling me that doesn't happen in real life? Well, that's a correlation.

Why do so many people try these crazy habits expecting them to make them rich?

Because wealth and reality are such complex topics, we need to consider some elements...

There might be more or I might be introducing the wrong elements, so consider this just a theory.

• Economic and Political Background (like Social Mobility)
• Market Dynamics (like Supply and Demand)
• Actions (and their context) taken by people who achieved wealth
• Luck and Randomness
• Your personal skills, personality, character traits, attitudes, traumas
• Social Psychology and Biases

And how all of these correlate to find if there is one or more factors that could potentially be a cause of wealth.

I would like to add other things like Emergence and other concepts, but I don't want to make this longer.

(Or) if there's no direct cause of wealth and if you need a set of elements that need to correlate in order to become wealthy.

Imagine there's a bunker with gold, but you need to enter a password that resets every day. (Like in the movie Maze Runner)

In my opinion, I think the first option is the correct and true one, but instead of just one thing, there are some things that together make the cause of becoming wealthy, just like how buns, lettuce, tomato, meat, cheese, and sauces come together to create a burger.

But that's not all because this is ambiguous, and I want to find the step-by-step process of accomplishing all the requirements to create that cause.

Otherwise, I'll be like this meme:

View attachment 50857

--------------------------------

We know that if we jump from the 55th floor of a skyscraper, we will die. You don't have to be an expert to know that fire will burn you.

It's more likely that the children of the wealthy will be rich, and the children of the poor will remain poor.

Now you might say, "What about self-made millionaires?" Well, you should delve deeper into these self-made millionaires because people miss some important things.

It's not the same to become rich from a middle-class background as it is from a poor background.

It's not the same to become rich in a capitalist country as it is in a communist country.

And don't get me wrong, this is not an excuse; I'm just trying to explore the odds and possibilities.

----------------

This is just the beginning, but I want to make sure to avoid misconceptions and keep this research as clear as possible (for you and me).

So, here are some biases that are important to be aware of and avoid to get a clear result:

• Narrative Bias
• Fooled by Randomness
• Survivor Bias
• Hindsight Bias
• Authority Bias
• WYSIATI (What You See Is All There Is) and Anchoring Bias

A little example:

Authority Bias: A millionaire can claim that their success formula is dancing naked in their garden and worship the sun.

I'm not a millionaire, but just because I'm not a millionaire doesn't mean I'm wrong; I could be right.

----------------
I created this post so as not to lose the idea, bring up some debate/conversation and to continue my research in the future. To be completely honest, I was pissed of fabout something and tried to channel my anger into something productive instead of complaining about how unfair life is.

Most people like to do bottom-up analysis to study success factors.

Not saying that this doesn’t have the merits. But it could blind the obvious factors.

There is a joke about three guys in three separate elevators. Guy in elevator A was doing push-up. Guy in elevator B was reading a magazine. Guy in elevator C was sleeping.

When asked what was the success in getting in Level one to level ten, A says due to push up. B says from the wisdom he read in a magazine. C claims from divine revelation in his dream.

All those didn’t matter. They were in the elevator that was going up.

If you study the real world people don’t succeed individually. People succeed in waves with similar pattern.

Most non-business people today in their 60s or older in the developed world made money from real estate appreciation.

There are early days in 2000s where a lot of young people made money from blogs. Many young people are still making it in e-commerce.

You need to figure out and bet on what is a good fit for your skills and that industry has a decent growing potential at least in the years that you are still hustling.

In other words we are to some extend all surfers riding on waves of mega trends.

 

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[MJ DeMarco]

You're taking a very simple concept and making it complicated.

So many people complicate wealth into this multi-variate octopus that needs taming.

-- Cold showers.
-- Value.
-- Scale.
-- VC Funding.
-- Meditation.
-- Education.
-- Waking up at 4AM.
-- Blah, blah, blah.

The accumulation of wealth comes down to one incredible simple thing, something that I wrote about over a decade ago:

The Law of Effection: The more people you impact in scale or magnitude, the richer you can become.

Impact millions, make millions. The statement doesn't care about education, race, gender, location, etc.

It only cares about numbers. Wealth is simple math.

Most customers = more wealth.
More influence = more wealth.
More money = more wealth.

As for the other factors that can correlate or have causation with respect to this law, stuff like socioeconomics, government policy, poverty, etc, yes, it matters.

For example...

• ...a person in New York has much better opportunity to "impact millions" than a poor person in rural Ghana.
• ...a woman in Venezuela does not have the same opportunity to "impact millions" as one does in San Diego.
• ...a privileged student who gets a free ride to Harvard will have more opportunity to "impact millions" than the poor farmer's kid attending Clayton County Community College.
• ....the offspring from a family who owns a successful legacy company has a better chance at Effection than someone struggling in poverty.

Bottomline, the one question that needs to be asked wherever you are on the planet, or whatever your circumstances is...

How can I put myself in a position to impact millions?

 

[Jrjohnny]

You're taking a very simple concept and making it complicated.

So many people complicate wealth into this multi-variate octopus that needs taming.

-- Cold showers.
-- Value.
-- Scale.
-- VC Funding.
-- Meditation.
-- Education.
-- Waking up at 4AM.
-- Blah, blah, blah.

Your wrong! An octopus has 8 legs you nibward!!!

Edit:

Im sorry this joke was indeed unfunny, I don’t know why I posted it

 

[WJK]

Why are few people rich while most of us are not?

You probably know the answer; 90% of people are lazy, envious, have a broke mindset, and whatnot.

But, is that right? I mean, sure, there are some people who fit that statement, but what about people who lack resources? People living in war-torn places in Africa or countries destroyed by communism, such as Cuba, Venezuela, etc.

And what about people like you? You work hard, you're smart, you have a good mindset, and you even have some contacts... but why does wealth seem so far?

This forum has come to one of multiple conclusions that "execution is what differentiates winners and losers, rich and poor."

Even if that's true, what exactly is "execution"? Is it about getting things done? Doing the right thing at the right time? Productivity? Consistency?

Don't get me wrong; I'm not saying this is wrong because this is not a rant.

I'm just trying to spark a debate to find what is real, because this world is incredibly vast, and people are extremely diverse.

My goal is to research and eliminate all biased answers because we, the people, have cognitive biases, and we let them unconsciously become a part of us.

----------------
Reality is extraordinarily complex.

We tend to oversimplify everything to feel safe and in control, even if it's a lie.

If you go outside, you'll see that people nowadays are frighteningly delusional.

However, we need to understand something first.

(This is very important because this is how we can understand wealth and why so many people try to become wealthy and fail.)

Correlation vs Causation:

Causation: the process of causing something to happen or exist.

Correlation: a connection or relationship between two or more facts, numbers, etc.
----------------
Let me give you an example:

Theoretical Statement: People are rich because they are well-educated.

Do people with degrees usually have more money? Yes.

Do people without any degrees usually have less money? Yes.

Does that mean getting well-educated automatically makes you rich? No.

The evidence shows that this fact is a correlation, not causation.

Short Version:

Imagine you're studying wealthy people and investigating whether having more education is linked to having more money. You find a positive connection between education level and wealth – often, people with more education also have more money. However, having more education doesn't guarantee wealth. Other factors like job opportunities and connections also play a significant role. So, the connection we see is called "correlation," but it doesn't mean education directly causes wealth.

If you hit your hand with a hammer, in 99% of cases, it will make you feel pain. This is causation. One thing directly causes another.

Detailed Version:

Imagine you're conducting a study to understand whether there's a correlation between education level and the wealth of people considered "rich." You collect data from a sample of wealthy individuals and record their highest level of education (measured in terms of degrees obtained) along with their net worth.

After analyzing the data, you might find a positive correlation between education level and wealth. This means that, on average, individuals with higher levels of education tend to have higher levels of wealth. In other words, as the level of education increases, the wealth of these individuals tends to increase as well.

However, it's important to note that this correlation doesn't necessarily mean that education directly causes wealth. Other factors could be at play, such as career opportunities, networking, access to resources, and more. Correlation helps highlight a potential relationship between education and wealth, but it doesn't establish causation.

If you hit your hand with a hammer, in 99% of cases, it will make you feel pain. This is causation. One thing directly causes another.

========

If 90% of millionaires wake up at 5 am every day.

And you wake up every day at 5 am, and magically you become a millionaire. Congratulations, you've discovered causation. (Sarcasm)

Wait? That's not realistic? So you're telling me that doesn't happen in real life? Well, that's a correlation.

Why do so many people try these crazy habits expecting them to make them rich?

Because wealth and reality are such complex topics, we need to consider some elements...

There might be more or I might be introducing the wrong elements, so consider this just a theory.

• Economic and Political Background (like Social Mobility)
• Market Dynamics (like Supply and Demand)
• Actions (and their context) taken by people who achieved wealth
• Luck and Randomness
• Your personal skills, personality, character traits, attitudes, traumas
• Social Psychology and Biases

And how all of these correlate to find if there is one or more factors that could potentially be a cause of wealth.

I would like to add other things like Emergence and other concepts, but I don't want to make this longer.

(Or) if there's no direct cause of wealth and if you need a set of elements that need to correlate in order to become wealthy.

Imagine there's a bunker with gold, but you need to enter a password that resets every day. (Like in the movie Maze Runner)

In my opinion, I think the first option is the correct and true one, but instead of just one thing, there are some things that together make the cause of becoming wealthy, just like how buns, lettuce, tomato, meat, cheese, and sauces come together to create a burger.

But that's not all because this is ambiguous, and I want to find the step-by-step process of accomplishing all the requirements to create that cause.

Otherwise, I'll be like this meme:

View attachment 50857

--------------------------------

We know that if we jump from the 55th floor of a skyscraper, we will die. You don't have to be an expert to know that fire will burn you.

It's more likely that the children of the wealthy will be rich, and the children of the poor will remain poor.

Now you might say, "What about self-made millionaires?" Well, you should delve deeper into these self-made millionaires because people miss some important things.

It's not the same to become rich from a middle-class background as it is from a poor background.

It's not the same to become rich in a capitalist country as it is in a communist country.

And don't get me wrong, this is not an excuse; I'm just trying to explore the odds and possibilities.

----------------

This is just the beginning, but I want to make sure to avoid misconceptions and keep this research as clear as possible (for you and me).

So, here are some biases that are important to be aware of and avoid to get a clear result:

• Narrative Bias
• Fooled by Randomness
• Survivor Bias
• Hindsight Bias
• Authority Bias
• WYSIATI (What You See Is All There Is) and Anchoring Bias

A little example:

Authority Bias: A millionaire can claim that their success formula is dancing naked in their garden and worship the sun.

I'm not a millionaire, but just because I'm not a millionaire doesn't mean I'm wrong; I could be right.

----------------
I created this post so as not to lose the idea, bring up some debate/conversation and to continue my research in the future. To be completely honest, I was pissed of fabout something and tried to channel my anger into something productive instead of complaining about how unfair life is.

I too have been contemplating this question for all of my adult life. What really confounds me is why others can watch the process, and then be totally blind to it. (But were they really watching or just taking up space?) They made fun of me when I was young. They told me to get a life while they partied and I was slugging away at my goals. Then, later, they dismissed me by telling me I was just lucky. That stark white blindness still catches me off guard sometimes. Where were their brains and attention when I was putting in the work?

 

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[JordanK]

Identify where you are on the wealth ladder and the correct next steps to achieving your goals.

Then make consistent smart decisions for days, weeks, months and years.

For someone in a 3rd world country that might involve doing everything you can to access higher education and a visa to study in a first world country that allows you to stay.

For someone in a 1st world country that might be to drop out of college to continue scaling your side hustle which has now turned into a full scale business.

Play the cards you are dealt.

 

[socaldude]

Another way of thinking about this is very simple.

How do you create an economy? How do you produce something?

Well you need land, labor, capital and entrepreneurship. And of course a unit of exchange.

If you still have trouble thinking about this just think about the economy without thinking about money.

Then it makes sense why some people get rich and others don’t.

 

[Caminsky]

I'm not trying to be a jerk, but that's WAY too much navel-gazing.

K.I.S.S. (Keep It Simple, Stupid).

Stop worrying about why other people are rich. Focus on what you can provide to the world (to make yourself rich).

 

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[MJ DeMarco]

Curious, if one is already rich (or minimally, feels rich) do we need to waste our time decoding "the real truth?"

I'm not a millionaire, but just because I'm not a millionaire doesn't mean I'm wrong; I could be right.

Simple question: If you sold a million widgets per year and made $5 profit each, would you be a millionaire?

The ways, means, and methods of getting there will be different for everyone, and there will be little correlation between 4AM mornings, cold showers, meditation, and other typical self-development hacks.

Math is pure and not easily obfuscated.

The way I look at it is like baseball. As Americans, we start on 2nd base. In less developed countries, you start at home plate.

Another way of looking at it is 5-card draw (poker)... you can't control the cards you're dealt, but you can control the cards you can draw, and how to play the hand. And if the hand doesn't work out, you can continue to stay in the game until your cards improve.

You play the hand you're dealt with.

In today's culture, most people don't even play. They get their cards, and fold. They don't even draw, or they throw away their pair of kings and then complain on Reddit. Worse, their media and culture is telling them that their pair of kings is bad and they're aggrieved and victims... why? Because some other people were dealt aces.

 

[Aidan04]

Another way of thinking about this is very simple.

How do you create an economy? How do you produce something?

Well you need land, labor, capital and entrepreneurship. And of course a unit of exchange.

If you still have trouble thinking about this just think about the economy without thinking about money.

Then it makes sense why some people get rich and others don’t.

Most likely off topic but what would building an economy from scratch look like? Say for example you wanted to get countries in central Africa up to speed by building a self sustaining economy there. Would you utilize natural resources?

 

[Isaac Odongo]

Building an economy takes a culture, and so does failing to build an economy.

Adversity is my breakfast.

My Adversity is my ultimate test.

The Adversity of my environment is my unfair advantage.

I can choose to play and that's what I do.

I can choose how I play and that's what I do.

 

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[socaldude]

Say for example you wanted to get countries in central Africa up to speed by building a self sustaining economy there. Would you utilize natural resources?

The factors involved get complex.

But stuff like corrupt governments, crime, uneducated-illiterate population has a lot to do with it.

Folks in 3rd world countries do have it harder. I can see why. The people are different. You can't even get a job. It's cooler to just be a criminal. Etc.

But, my point is when it comes to economics. The possibilities are unlimited. Somewhere out in a 3rd world country there is land that be tested and used for a particular business for export to 1st world countries.

 

[Aidan04]

The factors involved get complex.

But stuff like corrupt governments, crime, uneducated-illiterate population has a lot to do with it.

Folks in 3rd world countries do have it harder. I can see why. The people are different. You can't even get a job. It's cooler to just be a criminal. Etc.

But, my point is when it comes to economics. The possibilities are unlimited. Somewhere out in a 3rd world country there is land that be tested and used for a particular business for export to 1st world countries.

I don't know what yet, but some semblance of an idea is beginning to form in my head.

Some way to bring 3rd world economies up to speed while also generating wealth here at home.

 

[socaldude]

Some way to bring 3rd world economies up to speed while also generating wealth here at home.

If you go to the front page of the World Bank they have a section that says "Understanding Poverty".

Understanding Poverty

Why do these POS's have an interest in 3rd world poverty?

Well, because they know what I just said. They want to beat the gun. They want to get their dirty hands on it.

Every 3rd world country will eventually become a 1st world country(for the most part).

 

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[Antifragile]

People trying to decode things that aren’t encoded in the first place … is why you are poor.

Bumble bee doesn’t know it’s not aero and isn’t supposed to be able to fly, so it does it anyway.

Instead of decoding, how about doing?

I believe in magic.


Also, read this:
GOLD! - Think Big, and Then Think Bigger Than That.

Edit: broken link.

 

[Aidan04]

If you go to the front page of the World Bank they have a section that says "Understanding Poverty".

Understanding Poverty

Why do these POS's have an interest in 3rd world poverty?

Well, because they know what I just said. They want to beat the gun. They want to get their dirty hands on it.

Every 3rd world country will eventually become a 1st world country(for the most part).

Some of us need to beat those assholes to the punch then.

Whatever they do is going to be unethical and will go into the pockets of governments and world leaders.

 

[Isaac Odongo]

Corruption and incompetence is definitely endemic in most 3rd world countries.

In others the population is educated, but ill educated. Education is designed for service economies, which flourish in 1st world countries. Yet 3rd world countries need Education for industrialisation.

As a result, the populace is largely parasitic and dependent upon government and aid.

Buy the people are waking up to this problem of education.

 

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[WJK]

Corruption and incompetence is definitely endemic in most 3rd world countries.

In others the population is educated, but ill educated. Education is designed for service economies, which flourish in 1st world countries. Yet 3rd world countries need Education for industrialisation.

As a result, the populace is largely parasitic and dependent upon government and aid.

Buy the people are waking up to this problem of education.

It is mainly important that you wake up to educate yourself.

 

[Roy2023]

Why are few people rich while most of us are not?

You probably know the answer; 90% of people are lazy, envious, have a broke mindset, and whatnot.

But, is that right? I mean, sure, there are some people who fit that statement, but what about people who lack resources? People living in war-torn places in Africa or countries destroyed by communism, such as Cuba, Venezuela, etc.

And what about people like you? You work hard, you're smart, you have a good mindset, and you even have some contacts... but why does wealth seem so far?

This forum has come to one of multiple conclusions that "execution is what differentiates winners and losers, rich and poor."

Even if that's true, what exactly is "execution"? Is it about getting things done? Doing the right thing at the right time? Productivity? Consistency?

Don't get me wrong; I'm not saying this is wrong because this is not a rant.

I'm just trying to spark a debate to find what is real, because this world is incredibly vast, and people are extremely diverse.

My goal is to research and eliminate all biased answers because we, the people, have cognitive biases, and we let them unconsciously become a part of us.

----------------
Reality is extraordinarily complex.

We tend to oversimplify everything to feel safe and in control, even if it's a lie.

If you go outside, you'll see that people nowadays are frighteningly delusional.

However, we need to understand something first.

(This is very important because this is how we can understand wealth and why so many people try to become wealthy and fail.)

Correlation vs Causation:

Causation: the process of causing something to happen or exist.

Correlation: a connection or relationship between two or more facts, numbers, etc.
----------------
Let me give you an example:

Theoretical Statement: People are rich because they are well-educated.

Do people with degrees usually have more money? Yes.

Do people without any degrees usually have less money? Yes.

Does that mean getting well-educated automatically makes you rich? No.

The evidence shows that this fact is a correlation, not causation.

Short Version:

Imagine you're studying wealthy people and investigating whether having more education is linked to having more money. You find a positive connection between education level and wealth – often, people with more education also have more money. However, having more education doesn't guarantee wealth. Other factors like job opportunities and connections also play a significant role. So, the connection we see is called "correlation," but it doesn't mean education directly causes wealth.

If you hit your hand with a hammer, in 99% of cases, it will make you feel pain. This is causation. One thing directly causes another.

Detailed Version:

Imagine you're conducting a study to understand whether there's a correlation between education level and the wealth of people considered "rich." You collect data from a sample of wealthy individuals and record their highest level of education (measured in terms of degrees obtained) along with their net worth.

After analyzing the data, you might find a positive correlation between education level and wealth. This means that, on average, individuals with higher levels of education tend to have higher levels of wealth. In other words, as the level of education increases, the wealth of these individuals tends to increase as well.

However, it's important to note that this correlation doesn't necessarily mean that education directly causes wealth. Other factors could be at play, such as career opportunities, networking, access to resources, and more. Correlation helps highlight a potential relationship between education and wealth, but it doesn't establish causation.

If you hit your hand with a hammer, in 99% of cases, it will make you feel pain. This is causation. One thing directly causes another.

========

If 90% of millionaires wake up at 5 am every day.

And you wake up every day at 5 am, and magically you become a millionaire. Congratulations, you've discovered causation. (Sarcasm)

Wait? That's not realistic? So you're telling me that doesn't happen in real life? Well, that's a correlation.

Why do so many people try these crazy habits expecting them to make them rich?

Because wealth and reality are such complex topics, we need to consider some elements...

There might be more or I might be introducing the wrong elements, so consider this just a theory.

• Economic and Political Background (like Social Mobility)
• Market Dynamics (like Supply and Demand)
• Actions (and their context) taken by people who achieved wealth
• Luck and Randomness
• Your personal skills, personality, character traits, attitudes, traumas
• Social Psychology and Biases

And how all of these correlate to find if there is one or more factors that could potentially be a cause of wealth.

I would like to add other things like Emergence and other concepts, but I don't want to make this longer.

(Or) if there's no direct cause of wealth and if you need a set of elements that need to correlate in order to become wealthy.

Imagine there's a bunker with gold, but you need to enter a password that resets every day. (Like in the movie Maze Runner)

In my opinion, I think the first option is the correct and true one, but instead of just one thing, there are some things that together make the cause of becoming wealthy, just like how buns, lettuce, tomato, meat, cheese, and sauces come together to create a burger.

But that's not all because this is ambiguous, and I want to find the step-by-step process of accomplishing all the requirements to create that cause.

Otherwise, I'll be like this meme:

View attachment 50857

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We know that if we jump from the 55th floor of a skyscraper, we will die. You don't have to be an expert to know that fire will burn you.

It's more likely that the children of the wealthy will be rich, and the children of the poor will remain poor.

Now you might say, "What about self-made millionaires?" Well, you should delve deeper into these self-made millionaires because people miss some important things.

It's not the same to become rich from a middle-class background as it is from a poor background.

It's not the same to become rich in a capitalist country as it is in a communist country.

And don't get me wrong, this is not an excuse; I'm just trying to explore the odds and possibilities.

----------------

This is just the beginning, but I want to make sure to avoid misconceptions and keep this research as clear as possible (for you and me).

So, here are some biases that are important to be aware of and avoid to get a clear result:

• Narrative Bias
• Fooled by Randomness
• Survivor Bias
• Hindsight Bias
• Authority Bias
• WYSIATI (What You See Is All There Is) and Anchoring Bias

A little example:

Authority Bias: A millionaire can claim that their success formula is dancing naked in their garden and worship the sun.

I'm not a millionaire, but just because I'm not a millionaire doesn't mean I'm wrong; I could be right.

----------------
I created this post so as not to lose the idea, bring up some debate/conversation and to continue my research in the future. To be completely honest, I was pissed of fabout something and tried to channel my anger into something productive instead of complaining about how unfair life is.

I like the post. Interesting thoughts about being wealthy. One important tip in all of this post is: execution. However, millionaires do work very hard to get where they are now.