2015-02-02 Wealth

ACH Study Groups

Ben & Fran Gilmore – Cofounders

7659 Gingerblossom Drive

Citrus Heights, CA 95621

916-722-2501 histbuff@garlic.com

www.ACHStudyGroups.com

March 4, 2015

This is a letter to our friends –

Wealth

The President and his supporters want to redistribute the wealth in America so that everyone has an equal share.

That sounds fair to those who would gain a bigger slice of the pie;

I have a better idea:

First – What is wealth. It is a possession of yours that has value. Let us say, a stack of gold coins, for example.

You fancy a beautiful mountain. You negotiate with the owner of the mountain and exchange part of your gold for ownership of the mountain. There has been no redistribution. Rather, the seller has exchanged dirt for an equal value of gold. You have exchanged gold for an equal value of dirt. Neither is any more wealthy than before.

Next, you exchange the rest of your gold with a contractor who builds you a beautiful home on the mountainside. You have no more gold – but you are just as wealthy as before. You have exchanged all your gold for dirt and a home of equal value.

On the other hand – The contractor has gained some wealth because he was able to build your home for less than you valued it. He made a profit. His profit represents the value the contractor added to the materials and labor in building your home. No wealth has been redistributed. A little has been created by the contractor.

You are out of gold. You need some more wealth. You have a mountain and a home. You mix your labor with what is available and dig into your mountain. You find gold.

Mixing your labor with what was available made it possible for you to create more wealth!

The bottom line – – If there is a fixed amount of wealth and everyone shares equally, everyone will starve! – – If we mix our labor with what is available, wealth is being created and the pie gets bigger and bigger.

Let’s get busy and create a bigger pie and stop quibbling over the size if each slice!

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