The cause of Inequality, Sam will not like this hard truth.

[neddy]

I already told you to forget about "fair". Nothing is fair in this world. Some people are born without arms or legs, some are blind at birth. Is that fair? Of course it isn't but nature often deals a cruel hand. You have to learn to live with it.

People complain about Walmart but Sam Walton had to milk cows during the great depression in order to make ends meet.

I would like to see Sam Walton milk cows in today's world, not in the Great Depression.

A civilized society will need to give some dignity to those borned with defects.

 

[Thick Face Black Heart]

Article begins very well, but the conclusion is ridiculous. The state has been getting it wrong by letting corporate special interests dictate the national agenda. Democratic rights have been signed off by the govt to corporates. And now the article claims demonization of govt is the root cause? In the first place it is the govt that allowed it to happen.

 

[Leongsam]

Article begins very well, but the conclusion is ridiculous. The state has been getting it wrong by letting corporate special interests dictate the national agenda. Democratic rights have been signed off by the govt to corporates. And now the article claims demonization of govt is the root cause? In the first place it is the govt that allowed it to happen.

Everyone is complaining about the system but nobody can propose anything better. How about going back to Monarchy or Tyranny?

In the good old days, it was winner take all and the losers either swore allegiance or were summarily executed. Regardless of the faults of today's democracies, they're still a hellava lot better than what civilizations had to put up with in the past.

The poor complain about lack of opportunity but there are countless rags to riches stories where individuals armed with nothing more than a dream and a lot of determination have gone on to become very wealthy. None of these opportunities would have existed 200 years ago.

In the UK, class divisions were so entrenched that moving up was close to impossible barring a miracle.

The disadvantaged have to accept the fact that the human species is driven by self interest. It's built into the DNA. Every effort spent moaning about unfairness would be far better spent figuring out a way to dig oneself out of a hole.

 

[Satyr]

Are you sure?
Obviously, you have not seen the odds stacked against the little guys.

Even in Australia, the last brick and mortar retail chain, Masters, have difficulties surviving in a cut-throat enivronment. Even with the best effort from the $loaded backers.

I have to go with Sam on this. Walmart started with one general store. MacDonalds with one burger and milkshake joint. However, you will do it much faster if you are in the US or maybe OZ. Go to a place where people admire success and will want to help you. Here people admire being "right" whatever that means.
In Singapore, the fastest route to success and wealth is still getting A's and joining the government. That's why tuition will never go away.

 

[neddy]

I have to go with Sam on this. Walmart started with one general store. MacDonalds with one burger and milkshake joint. However, you will do it much faster if you are in the US or maybe OZ. Go to a place where people admire success and will want to help you. Here people admire being "right" whatever that means.
In Singapore, the fastest route to success and wealth is still getting A's and joining the government. That's why tuition will never go away.

DECENT WAGES

Don't get me wrong.
I am referring to getting decent wages for working folks. Living wages.
Anything less than that is serfdom.



REAL ENTREPRENEURS

Entrepreneurs are fine, but they are just playing by one rule, to maximise profit over everything else.

People are buying into the rag-to-rich stories of entrepreneurs and how entrepreneurs are good for the economy.
I have seen enough entrepreneurs who are pretty much against the good of the country.

America is the perfect example of the dark side of entrepreneurship. On the one hand, they practise capitalism for their employees and socialism for their own family.

A real entrepreneur ever told me that it is socialist to leave his wealth for inheritance. The best thing he can do for the next generation is to let them have the entrepreneurship hunger!

*** Addendum *** Have you seen what happened in a country with too many entrepreneurs? And no one wants to work for the entrepreneurs?


SINGAPORE FLAG MAY LOSE ANOTHER STAR

I am referring the one of the 5 stars on the Singapore flag, the one on EQUALITY.
Is it time to drop off that star from the Singapore flag?

 

[Leongsam]

DECENT WAGES

Don't get me wrong.
I am referring to getting decent wages for working folks. Living wages.
Anything less than that is serfdom.

If the living wage is beyond what the productivity levels allow, money has to be borrowed to fund the wage bill. Bankruptcy is the long term result.

 

[neddy]

If the living wage is beyond what the productivity levels allow, money has to be borrowed to fund the wage bill. Bankruptcy is the long term result.

At least you are getting somewhere.

Productivity levels usually means Labour productivity because most of the other cost of production are fixed. Only labour cost can be adjusted and history tells us that it will be minimised to zero, just like in Roman times.

In the 70s to 90s, ICT has been responsible for reduction in cost of production so that labour cost need not fall so much. Moreover the babyboomers were spending and times were good. Everything started from a low cost base. Those good days are over! The only cost to reduce these days are labour cost.

So, using this myopic model, who can afford to buy anything if the masses are on subsistence level of survival.

America has reached a point where the corporate giants depend on external economy to keep up the "good times". Domestic consumption is down (used to be 70% of the economy) but if consumers cannot afford to buy, prices have to fall, and the productivity rules state that wages have to fall further, it is a vicious cycle for a developed country. And America is export this flawed model to the rest of the world.

In a world where the demographics is changing (boomers retiring), and flawed monetary policies are creating Zero Interest Rate Policy and excessive capacities, high cost base built up due to red and green tapes, where do you think labour productivity will end up?

Massive amount of money is also locked up in unproductive assets like housing.

I am just touching on the tip of the iceberg of a series of flawed economics which the developed countries have checkmated themselves.
Record profits for banks, record debts for governments and looming big trouble for the people.

 

[Leongsam]

In a world where the demographics is changing (boomers retiring), and flawed monetary policies are creating Zero Interest Rate Policy and excessive capacities, high cost base built up due to red and green tapes, where do you think labour productivity will end up?

The only flaw is the fact that governments and countries are not allowing themselves to declare bankruptcy. A culling needs to take place. Instead, money is being printed or conjured out of thin air electronically to sustain the terminally ill.

The decisions are political not economic.

If things were allowed to run their course, it would be even worse for the people.

 

[neddy]

Article begins very well, but the conclusion is ridiculous. The state has been getting it wrong by letting corporate special interests dictate the national agenda. Democratic rights have been signed off by the govt to corporates. And now the article claims demonization of govt is the root cause? In the first place it is the govt that allowed it to happen.

Excellent point. That is the victory of the corporate world, when they get themselves into government.

The only flaw is the fact that governments and countries are not allowing themselves to declare bankruptcy. A culling needs to take place. Instead, money is being printed or conjured out of thin air electronically to sustain the terminally ill.

The decisions are political not economic.

If things were allowed to run their course, it would be even worse for the people.

Point noted.

 

[neddy]

It is a priority to alleviate inequality – but not through redistribution, as the Holy Father was calling for, but by opening up the economy through market-based reforms, as President Xi Jinping said following the Third Plenum of the 18th Congress.

"Until exclusion and inequality in society and between peoples are reversed, it will be impossible to eliminate violence."

- Pope Francis, in last week's "Apostolic Exhortation".

On the final Inside Business program yesterday, strategist Gerard Minack showed this chart:

Forty years ago the average wealth of the top 1 per cent was exactly 10 times the average of the rest. Now it's 29 times, and rising, while the wealth of the rest is flat. His point was that inequality is likely to be the next great challenge for the world economy.

Here's another chart, from a study by Paolo Liberati of Roma Tre University.

It suggests that overall inequality is declining, but only because of a decline in inequality between nations. "Within inequality" (that is, within nations) has risen dramatically. Liberati says that is led by the "increased level of inequality in China".

In fact both of the lines on this chart are dominated by China. According to Professor Liberati, "… total inequality receives two contrasting inputs. On the one hand, the powerful convergence force associated to the reduction of the Chinese gap with richer countries; on the other hand, the powerful divergence force associated both to the enlargement of the Chinese gap with poorer countries and to the greater weight of the Chinese within inequality."

Inequality is not caused by capitalism but by its lapses – that is, by vested interests that distort the system for their own purposes and capture more than their share. Inequality is thus caused by a failure of regulation and competition, not by the existence of competition.

 

[Leongsam]

http://teremity.wordpress.com/2013/10/02/21-ways-rich-people-think-differently/

World’s richest woman Gina Rinehart is enduring a media firestorm over an article in which she takes the “jealous” middle class to task for ‘drinking or smoking and socializing’ rather than working to earn their own fortune.

What if she has a point?

Steve Siebold, author of ‘How Rich People Think’ spent nearly three decades interviewing millionaires around the world to find out what separates them from everyone else.

It had little to do with money itself, he told Business Insider. It was about their mentality.
“[The middle class] tells people to be happy with what they have,” he said. “And on the whole, most people are steeped in fear when it comes to money.”

Average people think MONEY is the root of all evil. Rich people believe POVERTY is the root of all evil.

“The average person has been brainwashed to believe rich people are lucky or dishonest,” Siebold writes.
That’s why there’s a certain shame that comes along with “getting rich” in lower-income communities.
“The world class knows that while having money doesn’t guarantee happiness, it does make your life easier and more enjoyable.”

Average people think selfishness is a vice. Rich people think selfishness is a virtue.

“The rich go out there and try to make themselves happy. They don’t try to pretend to save the world,” Siebold told Business Insider.
The problem is that middle class people see that as a negative––and it’s keeping them poor, he writes.
“If you’re not taking care of you, you’re not in a position to help anyone else. You can’t give what you don’t have.”

Average people have a lottery mentality. Rich people have an action mentality.

“While the masses are waiting to pick the right numbers and praying for prosperity, the great ones are solving problems,” Siebold writes.
“The hero [middle class people] are waiting for may be God, government, their boss or their spouse. It’s the average person’s level of thinking that breeds this approach to life and living while the clock keeps ticking away.”

Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.

“Many world-class performers have little formal education, and have amassed their wealth through the acquisition and subsequent sale of specific knowledge,” he writes.

“Meanwhile, the masses are convinced that master’s degrees and doctorates are the way to wealth, mostly because they are trapped in the linear line of thought that holds them back from higher levels of consciousness…The wealthy aren’t interested in the means, only the end.”

Average people long for the good old days. Rich people dream of the future.

“Self-made millionaires get rich because they’re willing to bet on themselves and project their dreams, goals and ideas into an unknown future,” Siebold writes.

“People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression.”

Average people see money through the eyes of emotion. Rich people think about money logically.

“An ordinarily smart, well-educated and otherwise successful person can be instantly transformed into a fear-based, scarcity driven thinker whose greatest financial aspiration is to retire comfortably,” he writes.

“The world class sees money for what it is and what it’s not, through the eyes of logic. The great ones know money is a critical tool that presents options and opportunities.”

Average people earn money doing things they don’t love. Rich people follow their passion.

“To the average person, it looks like the rich are working all the time,” Siebold says. “But one of the smartest strategies of the world class is doing what they love and finding a way to get paid for it.”
On the other hand, middle class take jobs they don’t enjoy “because they need the money and they’ve been trained in school and conditioned by society to live in a linear thinking world that equates earning money with physical or mental effort.”

Average people set low expectations so they’re never disappointed. Rich people are up for the challenge.

“Psychologists and other mental health experts often advise people to set low expectations for their life to ensure they are not disappointed,” Siebold writes.
“No one would ever strike it rich and live their dreams without huge expectations.”

Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.

“That’s why people like Donald Trump go from millionaire to nine billion dollars in debt and come back richer than ever,” he writes.
“While the masses are fixated on the doing and the immediate results of their actions, the great ones are learning and growing from every experience, whether it’s a success or a failure, knowing their true reward is becoming a human success machine that eventually produces outstanding results.”

Average people believe you need money to make money. Rich people use other people’s money.

Linear thought might tell people to make money in order to earn more, but Siebold says the rich aren’t afraid to fund their future from other people’s pockets.
“Rich people know not being solvent enough to personally afford something is not relevant. The real question is, ‘Is this worth buying, investing in, or pursuing?’” he writes.

Average people believe the markets are driven by logic and strategy. Rich people know they’re driven by emotion and greed.

Investing successfully in the stock market isn’t just about a fancy math formula.
“The rich know that the primary emotions that drive financial markets are fear and greed, and they factor this into all trades and trends they observe,” Siebold writes.
“This knowledge of human nature and its overlapping impact on trading give them strategic advantage in building greater wealth through leverage.”

Average people live beyond their means. Rich people live below theirs.

“Here’s how to live below your means and tap into the secret wealthy people have used for centuries: Get rich so you can afford to,” he writes.
“The rich live below their means, not because they’re so savvy, but because they make so much money that they can afford to live like royalty while still having a king’s ransom socked away for the future.”

Average people teach their children how to survive. Rich people teach their kids to get rich.

Rich parents teach their kids from an early age about the world of “haves” and “have-nots,” Siebold says. Even he admits many people have argued that he’s supporting the idea of elitism.
He disagrees.
“[People] say parents are teaching their kids to look down on the masses because they’re poor. This isn’t true,” he writes. “What they’re teaching their kids is to see the world through the eyes of objective reality––the way society really is.”
If children understand wealth early on, they’ll be more likely to strive for it later in life.

Average people let money stress them out. Rich people find peace of mind in wealth.

The reason wealthy people earn more wealth is that they’re not afraid to admit that money can solve most problems, Siebold says.
“[The middle class] sees money as a never-ending necessary evil that must be endured as part of life. The world class sees money as the great liberator, and with enough of it, they are able to purchase financial peace of mind.”

Average people would rather be entertained than educated. Rich people would rather be educated than entertained.

While the rich don’t put much stock in furthering wealth through formal education, they appreciate the power of learning long after college is over, Siebold says.
“Walk into a wealthy person’s home and one of the first things you’ll see is an extensive library of books they’ve used to educate themselves on how to become more successful,” he writes.
“The middle class reads novels, tabloids and entertainment magazines.”

Average people think rich people are snobs. Rich people just want to surround themselves with like-minded people.

The negative money mentality poisoning the middle class is what keeps the rich hanging out with the rich, he says.
“[Rich people] can’t afford the messages of doom and gloom,” he writes. “This is often misinterpreted by the masses as snobbery.
Labeling the world class as snobs is another way the middle class finds to feel better bout themselves and their chosen path of mediocrity.”

Average people focus on saving. Rich people focus on earning.

Siebold theorizes that the wealthy focus on what they’ll gain by taking risks, rather than how to save what they have.
“The masses are so focused on clipping coupons and living frugally they miss major opportunities,” he writes.
“Even in the midst of a cash flow crisis, the rich reject the nickle and dime thinking of the masses. They are the masters of focusing their mental energy where it belongs: on the big money.”

Average people play it safe with money. Rich people know when to take risks.

“Leverage is the watchword of the rich,” Siebold writes.
“Every investor loses money on occasion, but the world class knows no matter what happens, they will aways be able to earn more.”

Average people love to be comfortable. Rich people find comfort in uncertainty.

For the most part, it takes guts to take the risks necessary to make it as a millionaire––a challenge most middle class thinkers aren’t comfortable living with.
“Physical, psychological, and emotional comfort is the primary goal of the middle class mindset,” Siebold writes.
World class thinkers learn early on that becoming a millionaire isn’t easy and the need for comfort can be devastating. They learn to be comfortable while operating in a state of ongoing uncertainty.”

Average people never make the connection between money and health. Rich people know money can save your life.

While the middle class squabbles over the virtues of Obamacare and their company’s health plan, the super wealthy are enrolled in a super elite “boutique medical care” association, Siebold says.
“They pay a substantial yearly membership fee that guarantees them 24-hour access to a private physician who only serves a small group of members,” he writes.
“Some wealthy neighborhoods have implemented this strategy and even require the physician to live in the neighborhood.”

Average people believe they must choose between a great family and being rich. Rich people know you can have it all.

The idea the wealth must come at the expense of family time is nothing but a “cop-out”, Siebold says.
“The masses have been brainwashed to believe it’s an either/or equation,” he writes. “The rich know you can have anything you want if you approach the challenge with a mindset rooted in love and abundance.”

By Mandy Woodruff – Business Insider

 

[neddy]

Bumped.

Inequality is not about giving a handout.

 

[neddy]

My favourite

Happy people vs grumpy people.

Gina Rhinhart spent much of her life in the court of justice, pity her.
Look also at Clive Palmer, the larger than life character and a successful man.

 

[neddy]

Inequality results when elite vested interests succeed in distorting society to their own ends, and the two great vested interests of the modern world are American bankers and the Chinese Communist Party.

It is hard to decide which of these two groups has been most successful in capturing a disproportionate share of its society's wealth. Each group has been phenomenally successful in its own way.


THE BANKERS

The bankers have had some setbacks though. They became too greedy twice in the past 15 years – during the dot com bubble of the late '90s and then the housing bubble of 2005-06.

But they weren't down for long. After 2003 it was the housing boom and specifically financial engineering that saw their incomes rise to even greater heights, and inequality widen dramatically once again.

In 2006-07 they totally lost faith in each other's credit quality, resulting in a collapse in inter-bank lending and a financial crisis. But they quickly regathered their political strength and persuaded Washington to use taxpayers’ money to recapitalise the banks, while wiping out shareholders' savings. Bankers' incomes sailed on, and the top 1 per cent once again saw their wealth surge, while the bottom 99 per cent went backwards.


THE CHINESE COMMUNIST PARTY

Meanwhile the world is getting a glimpse of the immense wealth that has been captured by China's elites as they rush to get the money out of China. Eg Chinese buying has sent the price of Bitcoins to equal the price of gold.

The 80 million members of the Chinese Communist Party (5.5 per cent of the population, not 1 per cent) are clearly worried:

When you leave part of society on the fringes, you can't guarantee tranquility.

As a result the CCP, who have captured the lion's share of China's wealth, are doing two things:

1. exporting capital as fast as possible and,
2. through their chosen Premier Xi Jinping, introducing reforms to allow them to export more capital more quickly, while also opening up opportunities for the masses to do a bit better through individual capitalism.

Source: http://www.businessspectator.com.au...great-vested-interests-bankers-and-communists

 

[jw5]

The bigger problem is inequity.

When you have bums getting huge pay for talking about premium toothpicks.

 

[Thick Face Black Heart]

My favourite

Happy people vs grumpy people.

Gina Rhinhart spent much of her life in the court of justice, pity her.
Look also at Clive Palmer, the larger than life character and a successful man.

It is very easy for *anyone* to come up with beautiful tables and charts like these detailing the differences between successful and unsuccessful people. I'm sure even Kopisai could do it. The real challenge is translating these platitudes and "fortune cookie wisdom" into workable results.

I can bet you my KKJ and LP that all the great, truly successful businessmen in the world never read any self-help book in their life. They just got off their asses and chased their dreams. The wisdom in how to live a good life came by in "real-time" when they were involved in their work, not from hearing what other people said.

 

[neddy]

It is very easy for *anyone* to come up with beautiful tables and charts like these detailing the differences between successful and unsuccessful people. I'm sure even Kopisai could do it. The real challenge is translating these platitudes and "fortune cookie wisdom" into workable results.

I can bet you my KKJ and LP that all the great, truly successful businessmen in the world never read any self-help book in their life. They just got off their asses and chased their dreams. The wisdom in how to live a good life came by in "real-time" when they were involved in their work, not from hearing what other people said.

These self-help books are too simplistic and do not address the specific individuals needs.

It is a lot easier to focus on one's strength and passion and that we are all made different.

Tiger mums will kill me for my thoughts on this, but it is not my problems

 

[Thick Face Black Heart]

The only flaw is the fact that governments and countries are not allowing themselves to declare bankruptcy. A culling needs to take place. Instead, money is being printed or conjured out of thin air electronically to sustain the terminally ill.

The decisions are political not economic.

If things were allowed to run their course, it would be even worse for the people.

These extremist views are the reason why anarchists and anti-capitalist elements are proliferating today, because for far too long the 99% has felt victimized by the 1% of society. If we structured society and government to be more equitable, people would gladly find more productive use of their time rather than protesting, hacking and being anti-social. Class warfare is not good, not even for the 1%. A more equitable society actually benefits the rich more, because the happier and wealthier the 99%, the more profits the 1% can make.

Unfortunately the world is governed by those who allow short term greed to rule, creating vast inequity in the system. It is not inequality that is the evil - it is INEQUITY. That is caused by governments wanting to milk the system at the expense of the long term good.

 

[winnipegjets]

That's a load of bull. There's nothing preventing any of the employees of Walmart from starting a retail chain and beating their former bosses at their own game.

If capital is readily available for anyone who asks, I am sure the Walmart associates will do that.

Listen, the bosses can't do the execution ...it is the associates that make it happen. A disgruntled workforce will do any company in, even if Leongsam is running the show.

 

[winnipegjets]

Nobody said success is easy but you have to give it a go instead of sitting back and whinging about how unfair life is.

Life was never fair in the past, it is not fair now and it won't be in the future regardless of what sort of political system is in place.

You are insulting the 20 million Americans who work their butts out earning minimum wage ...a wage level that can't sustain them without food stamps.

We don't live in the jungle and we are not animals. While right-wingers like you enjoy being animalistic, the majority of humans believe in a world that everyone deserves some decent living standard.