We are surrounded by wealth! An expanded understanding of how wealth is created just might assist us in increasing our own wealth.
Welcome to Part One of a three part series, "Where Does Wealth Come From?"
Free Markets exist when there is: Rule of Law, property rights, and patent protection. Isn't it awesome that we have the freedom to go out and buy the newest MacBook or a flat screen TV whenever we want?
Capitalism is designed to be win-win. One party is willing to part with their money in exchange for a desired product or service. This is win-win, not win-lose.
For the most part, prices are determined by supply and demand. The greater the demand, the greater the seller can increase price. When there exists an abundance of a product, it becomes easily accessible and prices can move down.
You may have noticed that companies are not done creating cool stuff. On the contrary, there are so many exciting breakthroughs and innovations in technology that it's enough to blow your mind. Innovation leads to sales (hopefully!) and sales translate (generally) to profits!
E-Bay is a great economic experiment. Why would someone pay $90 for a can of baked beans? Or $1,200 for a wedding dress modeled by an ex-husband? If enough people want the same thing, then that will drive up the price.
In This Episode We'll Look At:
Today's Resources and Links:
One Thing You Can Do Today to Improve Your Financial World:
Take a few minutes to watch this video and commit to develop a healthy perspective on wealth.
What Are Your Thoughts?
If you have a question or comment about today's topic, we invite you to share your thoughts.
