Usually when a nation is facing a financial drought, most people blame the rich and tell that they are causing all the suffering and misery the country is experiencing. We all have probably seen, how the rich were required to pay more taxes several times. But let’s take the thought into the extreme. If the rich were to give all their money to the poor and the middle class, would the problem be solved?
Normal people tend to blame the rich for their misfortune. They believe that everyone who has a bigger income than themselves is bad, because they get it through an unfair way. Is that really true? According to Forbes, 40% of the American billionaires are self made. A lot of them like Oprah Winfrey or Daymond John, grew up in difficult backgrounds. In fact many wealthy people lived in more dire situations than the ones complaining about them. If people with the same or even more difficult background did it, there should be a way for you to achieve that status too, isn’t it? There is a way, but the problem starts with one’s own mindset.
While rich people see themselves as the responsible persons for their lives, poor people don’t want to take responsibility and shift the blame on everything else but them. Depending on how you assume the responsibilities in your life you’ll end up improving or stay the same. If you take the blame for what happens to you, you’ll automatically accept that you still have more to learn, thus you’ll strive to acquire the skills and knowledge to manage and overcome certain problems. But if you distance yourself from it, it means you don’t recognize that you still have to learn and that means you won’t improve.
Value and necessity
There are three things that differentiates the rich and the poor the most. To find out what these three things are, first we need to ask ourselves this question: Why do consumers buy anything?
- For one to buy something, he first feels the need to have it. Hence consumers buy products and services out of necessity.
- A necessity represents a problem. Wealthy people know that and that’s why they provide solutions to cover the needs of their customers.
- For customers to buy from you and not a competitor, your product must offer more value than other similar products.
While poor people focus on earning money to consume (consumer mindset) rich people focus on producing solutions that covers the necessity of consumers with the greatest value possible (entrepreneurial mindset).
Nothing would change
If the rich were to give all their money to the poor, the problems of the poor would be resolved in the short term. In the long term, all money, would return in the hand of the rich, again. Unless the poor change their consumer mindset to an entrepreneurial one, they would end up losing all the money buying and consuming the solutions and products of the rich. In fact, most people would get themselves in even more terrible situations, just like most people who win the lottery. It’s important to be financial educated. Robert T. Kiyosaki’s Rich Dad, Poor Dad is a great book for that matter.