RULE THREE : Businesses that would grow rapidly with high profit margins must take advantage of technological disequilibriums, exploit development disequilibrium, or create sociological disequilibriums. All other activities are slow-growth, low-rate-of-return commodity businesses.
But when it come to generating billionaires, the mystery is not in America, Asia or Africa. The mystery is in Europe.
Real wealth is the ability to produce more with less - to generate a flow of goods and services without having to sacrifice something else of equal value. The real wealth of an individual who sacrifices his leisure TIME to work and generate a flow of income is not measured by the capitalized value of the income earned.
The value of the extra time sacrificed has to be subtracted from the new market wealth to determine if gains in real wealth have occurred.
Example, the United States of America, is first in the world in terms of GDP per person but ninth in terms of GDP per hour of work. Americans or the residents there have more money because they have less leisure.
If the leisure TIME sacrificed is more valuable than the new goods bought, the individual, ie: you or me, has become poorer despite having more market wealth. Real wealth is not created by taking TIME away from other activities and devoting it to money-making activities. Real wealth is ultimately created by increases in what economists call LABOUR PRODUCTIVITY : the same TIME spent working generates more income (and hence wealth) than it did in the past.
Simply put, wealthier societies are higher total factor productivity societies.
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