Secrets of Getting Wealthy

re: Secrets of Getting Wealthy

Heather Marsh — Mon, 12 Jan 2009 12:31:15 GMT

I feel that one of the biggest mistakes our economy has made is in the area of speculation. I can understand initial shares for start-up capital for a new venture - but once a new venture is fully afloat, perhaps then these loans should be progressively repaid at initial investment plus whatever percentage of the capital appreciation is appropriate. The capital gains - or losses- could be adjusted to income tax over the same number of years it took for the loan to be repaid.

From my novice view of shares etc, 'betting' against a company's future performance adds a whole other level of complexity and risk - and ultimately costs to the end consumers-us.

If a business cannot remain viable based on its own productivity......throwing more money at it will not fix it.

re: Secrets of Getting Wealthy

Reinhard Rosch — Sun, 11 Jan 2009 01:51:37 GMT

From a technical perspective, Microsoft operating system software is a real dog. Bill Gates made his money by shrewd marketing, not by producing good code. Are our CEOs really worth the billions they pay themselves. And who got us into the economic mess that we are in, the consumer?

re: Secrets of Getting Wealthy

korz — Sat, 10 Jan 2009 02:36:43 GMT

The one other thing that the government can and should do is encourage people to invest in companies again. I believe the best way to do this is to create a graduated capital gains tax. To stabilize stock prices and have them go in the right direction, the government needs to encourage long-term investment. If short-term capital gains (less than one year) were taxed at the full rate and the capital gains tax rate decreased the longer you kept the stock or bond or direct investment in the company (let's say, the tax decreased by 20% for every year you held the investment), then investors would put money in and leave it for longer periods, thus stabilizing the markets and providing much-needed capital for businesses to grow and hire more employees. Conversely, short-term losses (less than 1 year), should be not deductible and the deductibility should increase as you hold the investment longer (say, 20% after 1 year, 40% after 2 years, etc.).

I don't know how to do the first thing I proposed in the previous post, that is, to encourage (presumably with tax incentives) businesses to hire more US employees (no incentives for off-shoring work!), but I'm an engineer, not an economist. I do know, however, that simply giving money or even tax breaks to citizens aren't going fix the economic problem. Our economy needs a new heart, not defibrillation.

One last thing: I think our country needs to get it's head around the concept of lower salaries when times are tough. I just read that while unemployment rose to 7.2%, wages rose 3.7%. If your company is selling 20% less goods, then either you need to cut staff by 20% or salaries by 20%, right? I, for one, would rather get less money than be unemployed. How to prevent employers from exploiting the workers is another question for which I don't have an answer, but there have to be workable implementations for these proposals.

re: Secrets of Getting Wealthy

korz — Sat, 10 Jan 2009 02:21:31 GMT

Regarding Michelle37's comments, government helping business (or getting out of business's way) is the only way to great jobs that directly produce goods and contribute to the GNP of the country. The government can create millions of jobs, but unless they actually produce goods and sell them, they are a burden on the country (read: taxpayers). They might be doing good things (repairing bridges, building libraries, improving roads, etc.), but remember that these are only the infrastructure that we build our society on... again, they don't contribute to the GNP. Oh, sure, the goverment can, say create an airline, but that's Socialism (Nationalized businesses, like the Soviet Union and China).

An offshoot of this discussion relates to what davidcmcm says about public services costing more if private companies provide them rather than if the government provides them. There's only one thing that I know that the goverment does pretty well and relatively efficiently: Medicare. Just about everything else can be done better in the private sector... yes, INCLUDING public services. Go look at "John Stossel Goes to Washington." There are many copies on the internet. Here's one place:

video.google.com/videosearch

In this show, from 2001, John Stossel looks at several examples of where cities have privatized city services (in one case, water & sewer, in another, public housing). In each case, the result was better and cheaper than when the goverment ran it. In the case of the water & sewer, the city went from one of the worst water qualities to one of the best in the US, the response time for repairs was cut to a fraction, and the cost decreased.

So, really the way to fix the economy is for the gov't to help businesses increase hiring, which will improve consumer confidence and people will start spending again. (continued)

re: Secrets of Getting Wealthy

Dr. MelanieWhittaker — Fri, 09 Jan 2009 16:14:03 GMT

Ok, I really don't see the value in this comment. The point is what? We should really be actively doing what?

re: Secrets of Getting Wealthy

notelove2 — Fri, 09 Jan 2009 09:26:34 GMT

In reply to limelemon who says that the community profits from the lowest prices, I say - what about the poor sucker who produced the service or product in the first place? The problem with this system is that the workers who have taken time and spent money learning how to produce the goods and services that we need, are now sold down the river by greedy corporations who want everything produced cheaper - one of the effects is that no-one knows how to do these things anymore

re: Secrets of Getting Wealthy

easy options — Fri, 09 Jan 2009 05:02:02 GMT

Has anyone read "Johnathan Livingston Seagull" Simple but revealing. The down fall of all societies start with moral decay. As more people see that they can get gain without effort.....they give up their own freedoms to get what is provided for them. Laws are then made to regulate this exchange to insure a false sense of security. CEO's see the profits in enslaving workers that have been taxed to the brink to support such a system. The worker has little choice but to live at the mercy of big business. Look at Big Pharm....looking to legislate mandatory vaccination. They see the public starting to resist....so they have wasted no time in using their constitutional right to lobby for their own best interest. I'm not very smart but I can see that many of us will become the sacrificial lamb for the good of the immoral masses. Those that have seen the opportunity to manipulate wealth have seen the profits in enslaving the natural tendency's of people to get something for nothing. Hopefully if history repeats itself...we will be forced to return to our own efforts. But not without a great deal of discomfort.

re: Secrets of Getting Wealthy

iloveamerica — Thu, 08 Jan 2009 21:24:49 GMT

Interesting conclusion. It seems that we are only "Free" if we continue to voluntarily subjugate ourselves to subscribing to whatever they put in front of us. Minded, there are an awful lot of products and services that are well worth the choices and products that I thoroughly need and enjoy. We are still a very free society considering all that is pushed down our throats and picked out of our pockets! And, I would venture to say that all of us are extremely fortunate to have what kind of life we have and live the way we do.

If we all look at how we should see our society and the complete disrespect for how it REALLY was in this Country I believe we might be more thankful for even the worst of things we deal with in America today! I mean, look at our lives and the fact that even Kings did not have the luxuries we "suffer" today. But, we should stay vigilant in not allowing our leaders and Government to forget who founded this Nation and what principles, ideals, beliefs and blood that has been shed to get to what we enjoy now!

My opinion is that we need to be living "Rich" lives to actually BE Free! A rich life to me is my Faith in God, my love and closeness in my family and thankfulness even in the worst times, no matter the circumstances; and especially, me "living" happy. "Things" will NEVER fulfill me in this life and this life will not last for very long. We come into this World with nothing and we'll leave with the same! I want to say that I was thankful when I had nothing and I can truly appreciate the times when I have so much, since I really do have so much. I will also say, with a few characters left, that even when I have only somewhat, I will always try to get the absolute BEST for myself and my family out of life and not forget others as well. I hope these principled opinions can help all of us look at things with thankful eyes.

I believe those are the "Secrets of getting wealthy"!

re: Secrets of Getting Wealthy

veggieman — Thu, 08 Jan 2009 19:47:06 GMT

Well, if anyone needs a primer on the failings of the unfettered free market approach espoused by Libertarians and neocons, look no further than the market melt down we're in. Our government watch dogs didn't regulate the way they should have. That's not an indictment of government; that's an indictment of the overt influence private interests have on public agencies. We need a balance but we've allowed our government to become a subject to corporate interests. And, of course, in our country, a corporation has the same rights as a person, no matter how large the corp is. The US is still a great place to start a business but that doesn't mean anything goes. And, under the Bush regime, anything goes was the mantra that just went.

re: Secrets of Getting Wealthy

chicamarie — Thu, 08 Jan 2009 18:44:02 GMT

I think there are some valuable arguments here on both sides, but I have come to believe, after many years of living on the earth and especially after watching the last few years of profiteering, that it is a strong human being who can resist the urge to amass more and more wealth, belongings, homes, whatever. The idea of an uncontrolled free market only works if you assume that everyone is altruistic, and will pay their taxes so that water is clean, and food is safe, and that roads are fixed. And that they won't pollute our air and earth because they'll get fined or because they know they shouldn't. BUT PEOPLE ARE WEAK!!!

Don't get me wrong, I love people, and I think everyone does their best, but when faced with the choice of paying their employees more or padding their own pocketbooks, it should be obvious to every thinking human that very few make the right choice. Just look at how companies decide to pull drugs off the market - if the lawsuits they will incur because of injuries, or even death (!) from their products don't put a huge dent in their profits, they will leave them on the market - disturbing stuff. And I know that politicians are equally weak, so when faced with the prospect of ditching their lobbyist money and making the right choices, they so seldom do what's right.

I don't know the answer, but I do know that letting everyone just do what they want all of the time would not be a pretty picture. Nuf' said.

re: Secrets of Getting Wealthy

nhorsek — Thu, 08 Jan 2009 15:59:09 GMT

Good comments and interesting perceptions of what creates wealth and happiness. Wealth is a relative term as is being a king or queen. We should each be able to maximize our potential. Government and socialism require control of the individual to be effective.

Capitalism thrives when everyone is allowed to reach their potential in providing value for the good of others. Greed is not compatible with any long term success in private business or government.

All wages are derived from profits generated from ethical business, that is giving value to the consumers. Salaries are paid from the profits of business. Government exists from the taxes on profits of business. All government wages and programs are funded from taxes.

Non-profits exist from the gifts that are possible from profits of business.

Freedom is the presence of justice and the absence of fear. Let's work for ethical profits and a responsible and accountable government. This can allow us to maximize out right of self determination for those that want it.

re: Secrets of Getting Wealthy

dwayneS — Thu, 08 Jan 2009 14:29:22 GMT

Well, there is truth in the fact that if we can sell value, rather than price, we will get ahead. Warren Buffet said "Be fearful when others are greedy, and be greedy when others are fearful." Now is the time. Accountability is also huge right now, but unfortunately it's missing by almost all the big corps. Internet sales are up higher than ever right now - that should account for something, no?

http://loklomedia.com/blog

http://investors-speak-out.com

re: Secrets of Getting Wealthy

Heather Marsh — Thu, 08 Jan 2009 13:25:53 GMT

I am already wealthy beyond the dreams of many today, and unbelieveably wealthy compared to many persons historically.

I have a brick home and sufficient income to ensure that I need never starve.

There is running water and inside plumbing.

There is electricity to power the lights and the computer and TV etc.

I can share my views with people from many countries simultaneously, and access a source of information greater than any physical library - all without leaving my chair.

I can view the great art works of the world, and create my own art without brush nor pen. I can study crafts and order items from the other side of the world if that is my wish.

And so much more.

More would be nice, but not strictly neccessary!

re: Secrets of Getting Wealthy

libertyvalance — Thu, 08 Jan 2009 13:23:31 GMT

Listen to economic experts interviewed on the Alex Jones show. They are all free MP3 downloads at http://drop.io/Summerbird Included are, Gerald Celente, Max Keiser, Paul Craig Roberts, Bob Chapman, Patrick Carmack and others. America is being deliberately destroyed by the banksters. (Bank Owning Gangsters.)

re: Secrets of Getting Wealthy

davidcmcm — Thu, 08 Jan 2009 10:27:01 GMT

Dear Limelemon

I agree with most of your comments. I have long held the belief that goverment, at any level, has no business in business.

That being said, government needs to govern and regulate. Say, for example, if our basic needs, e.g. water, transport, energy and health are controlled by private enterprise, will we pay more or less than if controlled by government.

I guess everybody would agree that we would pay more. That is not to say that there is no place for private enterprise in these areas, but that they should remain in the control of government. For example, if a water company was owned by government and the infrastucture was leased by private enterprise at an agreed value before the private operator took control, and the private operator, operated the plant for the term of the lease with pricing being set by an independant body that took into account the need for the private body to make a profit yet was able to control excessive or preditory pricing, then the needs of the community could be served while the best operating practices which ensue from private practice can take place.

At the end of the lease term, a revaluation could take place and the private operator could be recompensed for any increase in the value of the system (or penalised if lower) taking into account any normal wear and tear involved.

Of course, we need to trust Government.