Business : Wealth
What is Wealth
The question, "what is wealth?", boils down to, "what has value?" Value depends on coordinates, including the time axes coordinate. For example, the value of 4 liters of clean water in a desert probably differs from its value in ordinary Estonian house-hold, where people spend a whole bucket full of it for taking a shower. The value of money before and after inflation differs. One way to try to find an answer to the question, "what has value?", is to get inspiration from science fields and study extremums and critical points. For example, who is rich after an event, where all money becomes totally worthless, who is able to trade good-for-good? Another extremum might be, who is wealthy in a situation, where money does not have any inflation or deflation and people agree to trade with everyone, regardless of their religious and moral beliefs? It might be in a situation, where the population size increases, the lack of deflation is a contradictory statement.
Who is wealthier?
- some high-income person, who can not afford clean and healthy food and healthcare, where doctors do not pump their patients up with all possible medicines just to avoid getting sued;
- some farmer, who has almost no money at all, but who grows his own healthy food and has access to a health-care system, where doctors are free to apply their own, best, judgement;
The Value of Money
The value of money depends on the monetary component of price. Price is always a point in a multidimensional space, where € and $ are just 2 dimensions out of many. Every transaction always has 2 sellers and 2 buyers, of which one often tries to sell money. People DO choose lower paying jobs at a pleasant team rather than work with people, whom they consider to be bastards. In many cases murderous mafiosos can not compensate the lack of karma-credits with euros and dollars. On the other hand, karma-credits can not fully compensate monetary credits either. No amount of karma-credits can compensate the few liters of salt-free and clean water in a desert and no amount of karma-credits can be an adequate compensation in a transaction that takes place between people, who do not have a long-term, close, relationship. Yes, it does mean that love is never for free.
One of the things that modifies the value of money is its emission related inflation and events that are related to its emitter. It's fair to say that probably a bag full of old, Nazy German Deutschmarks that are not in a condition that philanthropists require, has far less value in year 2014 euros than it had prior to the World War 2.
Some Important Parameters of Wealth
As explained earlier, money has a "best before" date, after what it starts to "rot", its value starts to degrade. As of 2014_10 I, email@example.com, am not aware of an existence of a "refrigerator" for money, but it is possible to say that many people, who invested their resources to European real-estate prior to World War 2 bared heavy material losses, because the real-estate got either bombed to ruins or robbed by communists or it had to be abandoned in the process of escaping the war or any of the super-mafias (Nazis, Communists, Americans). Monetary resources can also be robbed in various ways. That includes litigation by business competitors, "confiscation" and "freezing" by super-mafias. Any real estate, including factories, server farms, power stations, can be "taxed" at will by super-mafias or just robbed by super-mafias or burned down by smaller mafiosos or business competitors.
As of 2014_10 I, Martin.Vahi@softf1.com, consider the least robable form of wealth that is not poverty to have a form of stem-infrastructure that can be easily, cheaply, transported and that can cheaply and quickly ensure the existence of production ability. For example, open source software that runs on wide variety of available computers has that property for software developers, who know, how to use it. It is OK for competing developers to use the same software, because software development is a service and services can be robbed only by physical enslavement, provided that the enslaved person is stupid enough to make the enslavement profitable for the enslavers, e.g. those naive statements that if I will not help my enslavers, then they will kill/torture me/someone-close-to-me and find someone else to do the work for them, etc. In another words, it is smart to keep the amount of owned real-estate and other easily robable forms of wealth to a minimum, but thrive for obtaining/producing tools that can be easily transported to anywhere, where one wants to live. The tools should allow their owner to offer goods/services even in conditions, where the traditional monetary system has totally collapsed and euros, dollars, are as worthless as Soviet Union rubles are in 2014 Estonia. There is only one exception to the minimization of the real-estate based wealth components: people should always own their own living space and a few, modest, spares at some other town or region of the world is also good to have.
Accumulation and Storage
Wealth, regardless of form, must be protected from parasites, plain robbers. The robbing activity has multiple names, including "taxation", "nationalization", "confiscation", "freezing of assets", etc. To give the robbers an edge, the robbers try to make sure that their opponents do not have the means to defend themselves. If the robbers have so huge inflow of resources that they lack the ability to spend the resources reasonably, they secure their top position by limiting the ability of their victims to acquire resources. The idea is that with less resources the victims have less capability to fight back. The limits have many forms, but the names of the limits include: "trade embargo", "war on drugs", "arms control", "censorship".
As with any fight, the battle should be influenced to a state, where the fight takes place on terms, where one is strong and the opponent is weak. In terms of wealth it means that the battle should take place in a form, where the opponent lacks resources and one has abundant resources. As with any project, the cost calculation should use a formula, where the known worst case cost is multiplied by 3, because in addition to the known costs there will be costs that can not be anticipated due to the lack of knowledge. There must be an effort to influence the battle to a state, where one has to spend as little amount of resources as possible, preferably gain resources, and the opponent has to spend as much resources as possible, preferably with a far greater rate than it requires resources. The most critical resources are the ones that run out first, like fresh water in a hot desert, heat in a snowy forest, etc.