Avalach21 said:
HappySqurriel said:
For (roughly) 99.9% of the population, the level of success you’re able to achieve is directly related to the consistency and quality of your actions. Much like how people tend to be out of shape or overweight because they are not putting in consistent high quality efforts towards eating healthy and exercising, people who are "poor" are generally not putting in consistent high quality efforts to improve their standard of living; and in most cases they’re doing (or have done) several things which ensure that they will not improve their standard of living.
Now, the general path to success is to decide upon a goal, make a plan that achieves that goal and to make all your decisions based on how they fit into that plan. If your goal is to become a doctor, and your current step on that plan is to save up money and to take night courses in community college the question of whether you should buy a HDTV on your credit card is easy to answer.
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hey happy squrriel i agree with your post but i have a question
ideally everyone can work out and keep in a shape, and everyone could get skinny and be fit, and the world would be great
but in regards to the social ladder, someone has to be at the bottom
so even if everyone worked to improve their standard of living, someone would end up at the bottom
right?
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Yes, someone would end up at the supposed "bottom". However, the real question would be "How bad is that bottom?"
In a perfect society where everyone is works, and is productive, more goods and services would be naturally produced. This would decrease the cost in the supply & demand equasion - more products being produced would drive down costs on everything that the citizens would need to sustain life, therefore allowing the citizens to save back more money and create wealth. This in turn would most likely drive down the very highest end of the scale (the top 1%) as they would need to incentivize their business more to continue to remain productive. Generally speaking, you find that the most productive societies are those with the lower GINI coefficient and better distribution of wealth, infrastructure, and technology.
So at the bottom end, you would have people that have a skillset that did not yield as great of results as the most productive and brightest in society. However, because of the nations productivity, those at the "bottom" would be in far superior shape to any other nation on earth. For example, it is better to be in poverty in the US and Europe than it is in Africa or India. This is because the productivity of western societies allow for cheaper distribution of vital needs - shelter, food, ect.
Looking back at history - America in the 1940s through 60s, you see that savings rates were very high - due to WW2, many Americans saved back 20% of their income per year during the war, and it continued to be above 10% for a few decades. Such a high savings rate produced great amounts of wealth and prosperity in the US. Even today, many families are benefitting from inheritances of that generation, because of the wealth (land, money, goods) they had produced thanks to productivity, savings, and lower consumption. However, today, we face the opposite of that because many Americans do not save (as indicated by the <5% savings rate we have had this decade, which has manifested itself in many foreclosures among other things) and deficit-spend.
Just a few ways to look at it. In the end, the most important things to a society to lead to prosperity are:
- Production - the rate at which the society can produce goods and services by its citizens, characterized in values the society holds toward good work ethos.
- Consumption - the rate at which the society consumes goods. If this is lower than production, then the society will benefit, as the gap in production and consumption will create wealth. When the opposite is true, poverty is created.
- Distribution - the rate at which the goods are distributed. Usually, governmental factors come into play here. Some societies are very productive and consume little, but have rampant governmental corruption which hurts distribution of wealth, and de-emphasizes the need of continued growth through technology and infrastructure.
Looking at those 3 things, you can usually find out how a society will fare, I believe.