Consider wheat. From a single grain (seed) ultimately and entire field of wheat can be created.
What is wealth? Most definitions say it is the accumulation of stuff, like money and assets. Certainly, it is that; but I say it also includes, health, love, friends, and other so-called intangibles also.
The economic principle is seed – time – harvest.
Seed planted, we can control; time is fixed, we cannot control that; and harvest is an outcome of seed and time. Therefore, I believe the secret to wealth creation is in the seed.
Another lesson about seed is that it multiplies after its own kind. Which says if you sow good seed you get a good harvest, if you sow bad seed you get a bad harvest. Both good and bad are multiplied, so choose your seed wisely.
Multiplication vs. Percentage Increase.
- 20th century economics of “scarcity”, called the law of supply and demand is all about percentage increase. It is based in a fractional monetary system. Your ability to control wealth is based on the Rule of 72. If you take the number 72 and divide it by the interest rate (or profit) it tells you how long it takes for your money (wealth) to double. 72/4% = 18 Years. Scarcity causes the percentage to rise.
- 21st century economics of “sharing” is about changing the system by multiplying through collaboration. This is closer to seed economics where one seed (idea) can be multiplied through collaboration to 30, 60, even hundreds of times the original in a very short window of time and possibly change or reform a nation.
In future blogs, we will discuss how this principle can be applied in your life. Again consider corn. One seed, creates a stalk of seven ears of corn, each ear with over 100 seeds (1 to 700 in a few months). I am sure you agree that is better than years in the scarcity system. This is the Secret to Wealth Creation!