Wealth Must Be Created Before We Can Give It To the Poor

[ajax]

https://mises.org/library/wealth-must-b ... ve-it-poor

06/18/2015 Steve Patterson


Business is often portrayed as being crude and cruel. According to the popular narrative — the Charles Dickens view of the world — businesses are filled with cold-hearted scrooges who value profits more than people. This is then contrasted with the kindness and altruism of charities, non-profits, and governments, which are all supposedly created to help people. Charity, in particular, is seen as ethically superior to business. After all, what could make a greater impact on the world than giving to the needy?

This view of the world is shortsighted. While it’s true that charity helps people, business makes a far greater contribution to humanity. Virtually all of the increases in society’s standard of living are because of simple commerce, and it’s the poor, in particular, who benefit the most. To understand why, we need to examine the different formulas that charities and businesses operate under.

Charities deal with distributing wealth — coordinating the transfer of some people’s “surplus” to other people’s “shortage.” Businesses, on the other hand, deal with creating wealth by selling goods and services people value.

Wealth Creation Comes First

Without this initial creation of wealth, charities would have nothing to distribute. In the developed world, it’s easy to forget that poverty is the default state of human existence. Wealth is not found in nature; it must be created, and this is precisely the role of businesses and entrepreneurs. They are the force which takes us out of the state of nature. All cases of poverty have the same solution — not wealth distribution, but wealth creation. This is not merely a theoretical argument. It’s witnessed everywhere around the globe.

The deeper we examine, the clearer it becomes. Consider the humble washing machine. We take it for granted in the developed world, but the washing machine has changed the lives of hundreds of millions of people. It’s no exaggeration to say its inventor has changed the course of history. How so? By dramatically reducing the amount of manual labor required to do laundry. Millions of people around the globe — women, in particular — are freed from spending countless hours washing clothing every week; their time can be spent elsewhere.

Let’s take a conservative estimate and say the washing machine saves five hours of labor per week. If a hundred million people own a machine, that’s five hundred million hours of work saved per week — a number so large it’s hard to wrap your mind around. That’s five hundred million hours which can be spent doing other things — getting educated, spending more time with family, earning larger incomes, volunteering at the local food bank, etc.

The impact of wealth creation and entrepreneurship is enormous, even though the engineer who designed the washing machine might have been selfish. His only motivation might have been to make money. Or, perhaps he kindly thought to himself, “I wish women didn’t have to spend so much time laboring over laundry.” Either way, the result was the same. The world has changed because of his invention. The businesses which sell washing machines, the engineers who design better ones, the steel workers who find cheaper ways to create the necessary raw materials — they all contribute to an exponential rise in people’s standard of living.

The Ripple Effects of Entrepreneurship

The benefits of entrepreneurship are not only immediate; they create a butterfly effect. Consider the plight of children who are born into families with washing machines. They, too, benefit from their mother’s free time. They might now be able to get an education and become engineers and producers themselves. Who knows? Perhaps the invention of the washing machine was an essential step to curing cancer. After all, the children who will grow up to become doctors must have a high enough standard of living in order to attend school.

But the ripple effects don’t stop there. Consider the individuals who are saved by the doctor who cures cancer! They, and their families, will also benefit from the washing machine’s existence, and will be able to produce even more for the rest of society. In other words, wealth creation is exponential, and it literally changes the course of history. A greedy businessman might only care about himself, but his inventions and efficiencies end up benefitting society in an extraordinary way.

Contrast this with charity. Giving a washing machine to somebody will change his or her life, there’s no question. And it certainly creates a ripple effect of its own. But creating a washing machine — or selling, designing, or improving one — changes the world. Even supplying the raw materials to the factory changes the world. The workers in the ore mill, or the waitress supplying their afternoon lunches, are directly involved in the process which brings people out of poverty.

This does not diminish the role of charities; they serve a valuable function too. If you are like me — if you aren’t an entrepreneur or engineer — then charity is an essential way to help your fellow man. Not everybody has the skills necessary to create a new invention or become a successful businessman. But that doesn’t preclude them from making a positive difference in the world. However, we should be realistic: a donation of furniture to Goodwill does not create the same ripple effect as selling affordable food or power tools to everyone.

Many economic truths work this way. We’re quick to praise what’s easily seen — giving a hamburger to someone truly in need — but we overlook or even condemn what happens behind the scenes and all of the labor and cooperation necessary to make and distribute cheap hamburgers. The farmer, the butcher, the truck driver, the cook, the engineer, and the businessman should also be praised for their work. Without them, there would be no surplus food for the charity worker to give away.

[Ezra]

With wealth you don't need to give it to the poor. You can instead offer them a job. Hold out a hand for them to lift themselves up. If they choose not to take it it's not our problem And should not have our wealth stolen for their benefit.

[oneClimbs]

One definitely needs the means to care for oneself in order to care for another. When the Nephites were righteous they were blessed and prospered, they grew wealthy. In some cases they used the wealth to care for the poor and in other instances they used it to elevate themselves while denying the poor. From day 1 out of the garden of Eden, Adam was to till the earth with the sweat of his brow. Work has always been an important part of our lives. Ezra's comment is on point as well. When one can use their wealth and position to help others lift themselves that's for the best; everyone has different needs and abilities.

[Arenera]

The Creator of this earth, who came and lived amoungst His children, how did he live?

He also said:

Seek not for riches but for wisdom, and behold, the mysteries of God shall be unfolded unto you, and then shall you be made rich. Behold, he that hath eternal life is rich.

And what about the people in ancient America who survived the cleansing after Christ's crucifixion?

And it came to pass in the thirty and sixth year, the people were all converted unto the Lord, upon all the face of the land, both Nephites and Lamanites, and there were no contentions and disputations among them, and every man did deal justly one with another.

And they had all things common among them; therefore there were not rich and poor, bond and free, but they were all made free, and partakers of the heavenly gift.

Compare that to Trump's poor little cabinet member, Steve Mnuchin: A Fortune analysis of the public filings found that Mnuchin's net worth could be as high as $500 million — on top of which he has pulled in recent additional income of nearly $70 million.

Yes, us poor people need to give Steve and his little wife a government jet to take a honeymoon. Let Steve eat cake.

[ajax]

The Creator of this earth, who came and lived amoungst His children, how did he live?

For most of his life as a creator of material wealth for others providing carpentry services, which contributed no doubt to the ability to support himself. For the last three years a creator of spiritual wealth. I wonder if he "saved up for his mission" so as to "take no thought".

And they had all things common among them; therefore there were not rich and poor, bond and free, but they were all made free, and partakers of the heavenly gift.

Do we really know what this means?

Compare that to Trump's poor little cabinet member, Steve Mnuchin: A Fortune analysis of the public filings found that Mnuchin's net worth could be as high as $500 million — on top of which he has pulled in recent additional income of nearly $70 million.

Yes, us poor people need to give Steve and his little wife a government jet to take a honeymoon. Let Steve eat cake.

Don't confuse wealth with money.

[Arenera]

The Creator of this earth, who came and lived amoungst His children, how did he live?

For most of his life as a creator of material wealth for others providing carpentry services, which contributed no doubt to the ability to support himself. For the last three years a creator of spiritual wealth. I wonder if he "saved up for his mission" so as to "take no thought".

And they had all things common among them; therefore there were not rich and poor, bond and free, but they were all made free, and partakers of the heavenly gift.

Do we really know what this means?

Compare that to Trump's poor little cabinet member, Steve Mnuchin: A Fortune analysis of the public filings found that Mnuchin's net worth could be as high as $500 million — on top of which he has pulled in recent additional income of nearly $70 million.

Yes, us poor people need to give Steve and his little wife a government jet to take a honeymoon. Let Steve eat cake.

Don't confuse wealth with money.

What you might call a Zion economy produces the most wealth of any, it is the best one by far. Other attempts are cheap imitations and always fail because of greed.

American capitalism has spurred great wealth yet it fumbles now because of the greed of those who have versus those who have not.

If you don't lift the poor, you will fail.

[Fiannan]

Read the Parable of the Talents. The guy who decided not to go out and invest was cast away and what little he had was given to the one who did invest.
Jesus did not teach some sort of hippie gospel, not in the least. One of the reasons for the decline of Christianity is too many people have bought into the idea that Jesus was a socialist. He was not.

[ajax]

American capitalism has spurred great wealth yet it fumbles now because of the greed of those who have versus those who have not.
Greed is inherent in humanity, not just "capitalism". And the great fumbling isn't capitalism per se, but greedy power seekers. Just because people choose greed, doesn't mean free agency should be thrown out the window.

If you don't lift the poor, you will fail.
Is there really any poor left in America?

[Arenera]

Read the Parable of the Talents. The guy who decided not to go out and invest was cast away and what little he had was given to the one who did invest.
Jesus did not teach some sort of hippie gospel, not in the least. One of the reasons for the decline of Christianity is too many people have bought into the idea that Jesus was a socialist. He was not.

Read Matthew 20:1-16 and be nice, not greedy. https://www.lds.org/scriptures/nt/matt/20?lang=eng

[Arenera]

American capitalism has spurred great wealth yet it fumbles now because of the greed of those who have versus those who have not.
Greed is inherent in humanity, not just "capitalism". And the great fumbling isn't capitalism per se, but greedy power seekers. Just because people choose greed, doesn't mean free agency should be thrown out the window.

If you don't lift the poor, you will fail.
Is there really any poor left in America?

Yes, you know poor lives matter.

[Fiannan]

Read the Parable of the Talents. The guy who decided not to go out and invest was cast away and what little he had was given to the one who did invest.
Jesus did not teach some sort of hippie gospel, not in the least. One of the reasons for the decline of Christianity is too many people have bought into the idea that Jesus was a socialist. He was not.

Read Matthew 20:1-16 and be nice, not greedy. https://www.lds.org/scriptures/nt/matt/20?lang=eng

What's your point? Would you unplug a clogged toilet in a public bus station to be nice or to get money? Come on, be honest, would you do it if someone asked you really nice? For free?

[ajax]

American capitalism has spurred great wealth yet it fumbles now because of the greed of those who have versus those who have not.
Greed is inherent in humanity, not just "capitalism". And the great fumbling isn't capitalism per se, but greedy power seekers. Just because people choose greed, doesn't mean free agency should be thrown out the window.

If you don't lift the poor, you will fail.
Is there really any poor left in America?

Yes, you know poor lives matter.

All the "poor" I know are fat and have smart phones, so maybe not.

[Thinker]

Extreme poverty (lowest rung of the economic ladder) may require more at first.
But otherwise (& especially for people below poverty level in the US), denying them
work is denying them an important need: dignity.

Of course leftists don't care about dignity & are more interested in rights tgan responsibilities. But human nature craves to feel needed and a sense of dignity.
Ie: An elderly home had a rule to never do for an elderly person what they can donfor themselves because otherwise it's taking from their ability.

[Spaced_Out]

No one should be given money it must in all instances be earn't. Nothing in the Kingdom of Heaven is given for free all blessings are predicated upon obedience to the law upon which they are based.

D&C56:17 Wo unto you poor men, whose hearts are not broken, whose spirits are not contrite, and whose bellies are not satisfied, and whose hands are not stayed from laying hold upon other men’s goods, whose eyes are full of greediness, and who will not labor with your own hands!

[David13]

We have people right on this very board who don't understand the truth of the title of this thread.
They think someone else should earn it, and then they can take it and give it away. They don't understand that their job is to CREATE the wealth, and then when they do that, THEY get to determine how it will be given away.
They end up becoming a self appointed taker of someone else's money.
dc

[Michelle]

We have people right on this very board who don't understand the truth of the title of this thread.
They think someone else should earn it, and then they can take it and give it away. They don't understand that their job is to CREATE the wealth, and then when they do that, THEY get to determine how it will be given away.
They end up becoming a self appointed taker of someone else's money.
dc

Someone once told my the four ways to spend money and I have never forgotten it:

1. You can spend your own money on yourself: you care more about quality and more about cost.
2. You can spend your own money on someone else: you care more about cost, but less about quality.
3. You can spend someone else's money on yourself: you care more about quality, but less about cost.
4. You can spend someone else's money on someone else: you care less about quality and less about cost.

[brianj]

No one should be given money it must in all instances be earn't. Nothing in the Kingdom of Heaven is given for free all blessings are predicated upon obedience to the law upon which they are based.

D&C56:17 Wo unto you poor men, whose hearts are not broken, whose spirits are not contrite, and whose bellies are not satisfied, and whose hands are not stayed from laying hold upon other men’s goods, whose eyes are full of greediness, and who will not labor with your own hands!

Umm... why?

Why should we not directly help one another when needed, or ask others to help us when we need it?

Earlier this month I helped a single mother short on money by giving her enough to fill her gas tank.
In this month's Ensign is a story about a woman whose daughter committed suicide, wherein she describes her ward paying the costs of the funeral and burial.
At church I have been asked to contribute to airfare to allow a ward member to fly home to Africa for his father's funeral.
My daughter's appendix burst right after I was laid off. After all the other expenses I didn't have about $600 for the last bill. My stake president told me to give it to my Bishop and I never heard from the hospital again.

Almost all of us will need help at least once in our lives. While i agree that we should not allow others to become dependent on us, I don't understand why anybody would say that we shouldn't freely give help when it is needed.

[David13]

No one should be given money it must in all instances be earn't. Nothing in the Kingdom of Heaven is given for free all blessings are predicated upon obedience to the law upon which they are based.

D&C56:17 Wo unto you poor men, whose hearts are not broken, whose spirits are not contrite, and whose bellies are not satisfied, and whose hands are not stayed from laying hold upon other men’s goods, whose eyes are full of greediness, and who will not labor with your own hands!

Umm... why?

Why should we not directly help one another when needed, or ask others to help us when we need it?

Earlier this month I helped a single mother short on money by giving her enough to fill her gas tank.
In this month's Ensign is a story about a woman whose daughter committed suicide, wherein she describes her ward paying the costs of the funeral and burial.
At church I have been asked to contribute to airfare to allow a ward member to fly home to Africa for his father's funeral.
My daughter's appendix burst right after I was laid off. After all the other expenses I didn't have about $600 for the last bill. My stake president told me to give it to my Bishop and I never heard from the hospital again.

Almost all of us will need help at least once in our lives. While i agree that we should not allow others to become dependent on us, I don't understand why anybody would say that we shouldn't freely give help when it is needed.

Freely. The operative word you have there is freely. That means when you helped these people you did so of your own accord, with wealth that you had earned (supposedly). Not with someone else's money, taken from then under threat of the gun, and arrest, and jailing.
That is what socialism does. And the great problem with socialism is they seek to control the economy, rather than let the people in a free enterprise system, or capitalist system earn wealth, and then share it with the needy.
Which control has proved to be in almost all cases, grossly inefficient and unable to produce enough wealth to be able to give any away.
dc

[Serragon]

No one should be given money it must in all instances be earn't. Nothing in the Kingdom of Heaven is given for free all blessings are predicated upon obedience to the law upon which they are based.

D&C56:17 Wo unto you poor men, whose hearts are not broken, whose spirits are not contrite, and whose bellies are not satisfied, and whose hands are not stayed from laying hold upon other men’s goods, whose eyes are full of greediness, and who will not labor with your own hands!

Umm... why?

Why should we not directly help one another when needed, or ask others to help us when we need it?

Earlier this month I helped a single mother short on money by giving her enough to fill her gas tank.
In this month's Ensign is a story about a woman whose daughter committed suicide, wherein she describes her ward paying the costs of the funeral and burial.
At church I have been asked to contribute to airfare to allow a ward member to fly home to Africa for his father's funeral.
My daughter's appendix burst right after I was laid off. After all the other expenses I didn't have about $600 for the last bill. My stake president told me to give it to my Bishop and I never heard from the hospital again.

Almost all of us will need help at least once in our lives. While i agree that we should not allow others to become dependent on us, I don't understand why anybody would say that we shouldn't freely give help when it is needed.

All poverty is not created equal.

Some need temporary help to get back on their feet. Some simply live beyond their means. Some have chosen poverty as their career path.

I give to each freely. The first receive money. The second group receive budgeting skills and advice. The third are encouraged to repent.

[Spaced_Out]

No one should be given money it must in all instances be earn't. Nothing in the Kingdom of Heaven is given for free all blessings are predicated upon obedience to the law upon which they are based.

D&C56:17 Wo unto you poor men, whose hearts are not broken, whose spirits are not contrite, and whose bellies are not satisfied, and whose hands are not stayed from laying hold upon other men’s goods, whose eyes are full of greediness, and who will not labor with your own hands!

Umm... why?

Why should we not directly help one another when needed, or ask others to help us when we need it?

Earlier this month I helped a single mother short on money by giving her enough to fill her gas tank.
In this month's Ensign is a story about a woman whose daughter committed suicide, wherein she describes her ward paying the costs of the funeral and burial.
At church I have been asked to contribute to airfare to allow a ward member to fly home to Africa for his father's funeral.
My daughter's appendix burst right after I was laid off. After all the other expenses I didn't have about $600 for the last bill. My stake president told me to give it to my Bishop and I never heard from the hospital again.

Almost all of us will need help at least once in our lives. While i agree that we should not allow others to become dependent on us, I don't understand why anybody would say that we shouldn't freely give help when it is needed.

All poverty is not created equal.

Some need temporary help to get back on their feet. Some simply live beyond their means. Some have chosen poverty as their career path.

I give to each freely. The first receive money. The second group receive budgeting skills and advice. The third are encouraged to repent.

It is mostly teach a man to fish as giving him a fish is usually not a good idea. If a person pays their ththing and fast offering there is no issues in helping that person during an emergency, that is the purpose of the program.

Sadly many never contribute yet continually come begging for assistance.
A lot of people feel guilty asking for assistance. So give assistance then ask them to clean the chapel for payment -- in most cases assistance would be more than the time it would take to clean the chapel, but a principle also taught, and it is very beneficial to the person receiving the assistance.

[Michelle]

Agreed, because: Venezuela.

Venezuela's president advises malnourished citizens to breed rabbits and eat them

http://www.independent.co.uk/news/world ... 47591.html

[marc]

God had already created "wealth" in the earth when he gave it to man.

D&C 59:18 Yea, all things which come of the earth, in the season thereof, are made for the benefit and the use of man, both to please the eye and to gladden the heart;

19 Yea, for food and for raiment, for taste and for smell, to strengthen the body and to enliven the soul.

20 And it pleaseth God that he hath given all these things unto man; for unto this end were they made to be used, with judgment, not to excess, neither by extortion.

Extortion and excess is precisely what fallen man has used as his means of exchange and self aggrandizement. Rather than "give freely" to one another as God gives to us (and not upbraids) men exact prices of one another, compelling them to enter into captivity (debt). Free enterprise is the system of Mammon. Men must serve Mammon in order to create their supposed wealth where moth and rust corrupt. When Lehi and his family arrived in the promised land, this is what corrupted them.

Jacob 2:12 And now behold, my brethren, this is the word which I declare unto you, that many of you have begun to search for gold, and for silver, and for all manner of precious ores, in the which this land, which is a land of promise unto you and to your seed, doth abound most plentifully.

13 And the hand of providence hath smiled upon you most pleasingly, that you have obtained many riches; and because some of you have obtained more abundantly than that of your brethren ye are lifted up in the pride of your hearts, and wear stiff necks and high heads because of the costliness of your apparel, and persecute your brethren because ye suppose that ye are better than they.

14 And now, my brethren, do ye suppose that God justifieth you in this thing? Behold, I say unto you, Nay. But he condemneth you, and if ye persist in these things his judgments must speedily come unto you.

15 O that he would show you that he can pierce you, and with one glance of his eye he can smite you to the dust!

16 O that he would rid you from this iniquity and abomination. And, O that ye would listen unto the word of his commands, and let not this pride of your hearts destroy your souls!

And what was the final thing the rich young man lacked who served Mammon?

Matthew 19:20 The young man saith unto him, All these things have I kept from my youth up: what lack I yet?

21 Jesus said unto him, If thou wilt be perfect, go and sell that thou hast, and give to the poor, and thou shalt have treasure in heaven: and come and follow me.

22 But when the young man heard that saying, he went away sorrowful: for he had great possessions.

23 ¶ Then said Jesus unto his disciples, Verily I say unto you, That a rich man shall hardly enter into the kingdom of heaven.

24 And again I say unto you, It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God.

Giving to one another simply for the asking is such a foreign concept to fallen man because Zion is such a foreign concept to him where all are one heart and one mind and there are no poor because there are no rich. All are equal in temporal things and thus heavenly things, dwelling righteously and justly.

[Spaced_Out]

Giving to one another simply for the asking is such a foreign concept to fallen man because Zion is such a foreign concept to him where all are one heart and one mind and there are no poor because there are no rich. All are equal in temporal things and thus heavenly things, dwelling righteously and justly.

Being hard working is more of a foreign concept to fallen man than giving of one's excess and abundance. For Zion to work each person must maximise their talents and put in equal effort.
Equality is only achieved if there is equal effort - early attempts at Zion failed due to lack of equal effort.

Why should the medical professional who worked hard through school and tertiary studies and works 12 hours days get the same as the guy who does nothing and never developed his talents, squanders his mortal probation but still expects a free handout and equality just by asking. This is where the real problem lies. Yes not everybody has equal opportunity to get education etc.. but that excuse is quiet thin in the western world where opportunities are available for all if they work hard and get good grades...

Doctrine and Covenants 68:30-31
30 And the inhabitants of Zion also shall remember their labors, inasmuch as they are appointed to labor, in all faithfulness; for the bidler shall be had in remembrance before the Lord.

[Spaced_Out]

I think there is a perverted sense of equality relating to Zion. Even in heaven there are many mansions which are inherited according to our works on earth - not all are equal in heaven.

John 14:2
2 In my Father’s ahouse are many bmansions: if it were not so, I would have told you. I go to prepare a place for you.
Doctrine and Covenants 98:18
18 Let not your hearts be troubled; for in my Father’s house are many mansions, and I have prepared a place for you; and where my Father and I am, there ye shall be also.

Those that work hard in this life have advantage in the world to come, we don't go into the hereafter on equal footing. Parable of the talents, those that have get given more, those that have little get that which they did have taken away.

Doctrine and Covenants 130:19-20
19 And if a person gains more knowledge and intelligence in this life through his diligence and obedience than another, he will have so much the advantage in the world to come.

[gclayjr]

spaced_out,

I think there is a perverted sense of equality relating to Zion. Even in heaven there are many mansions which are inherited according to our works on earth - not all are equal in heaven.

True. I was trying to noodle through this in a thread I started a little while ago.

Choices, Compound interest, and why there is no equal Glory in the Celestial Kingdom

viewtopic.php?f=14&t=46589

The whole idea of equality being equal, stuff, glory or whatever is a Satanic perversion of the eternal principle of Equal treatment, and equal opportunity. Unfortunately, it has infected our church, even from the early days. I am often clear about looking forward to living the law of Consecration, but not the United Order. The various implementations of the United Order failed, not only due to the imperfections of man, but due to the imperfections in the details of implementation.

The idea of the law of consecration, is that everything belongs to God, and that we are stewards of all of that which is his that we have, whether material goods, talent, time or whatever. We promise to use all that he has given us as a stewardship over to promote the kingdom of God. This does mean helping others, and sharing of our plenty, but nothing in it means that this is some pie to be shared in equal pieces.

In fact, I believe not only that the idea that where we are is largely a result of choices we made both in the per-existence and and here in this world is true, but it will be in effect eternally. We will eternally be in different places, with different skills, glory, stuff, or whatever. Each estate is here for a reason. For this second estate, the most important thing we can do is choose to repent, be baptized, and serve Jesus Christ to the end so that we will be headed in the right direction. For this estate the direction we facing at the end of this life is the most important thing. It is based upon this that we will be judged, and where we will be going, not where we are, or how much we have.

Regards,

George Clay