Saturday, March 02, 2013

3 Laws of Wealth

Recently while revisiting Newton's laws of motion; somewhere back of my mind I was also bickering over the current economic condition in the country as well as in the world. Both the stream of thoughts got merged (god only knows when) and I was surprised by the similarities between the motion and the wealth of an entity. Unable to contain the growing desperation, I thought it will be wise to pen down the 3 Laws of Wealth which my mind created but with strong references from our great Newton's laws of motion (so please do not charge me with plagiarism):

First Law: If there is no net effort (mental / physical / social / political) behind an entity or an individual, then its wealth will remain constant. The entity or individual is either enjoying its inherited money (LOL) or its income is increasing at a rate (meagre salary increments) getting negated by the inflation and rising costs.

Second Law: The increase in wealth 'I' of an entity or an individual is parallel and directly proportional to the net effort 'E' (mental / physical / social / political) generated by the entity or the individual, is in the direction of the efforts, and is inversely proportional to its expenditures and borrowings collectively called as liabilities 'L'. E = LI

Third Law: When an entity or an individual creates a wealth W1 in the economy, somewhere in the environment a second entity or an individual loses a wealth W2 = -W1. This means that W1 and W2 are equal in magnitude and opposite in direction.

These 3 laws of wealth holds true considering that at a given point of time, the overall wealth available and that can be generated in the entire world remains constant. Just see the simple application of the above laws: If you purchase something, manufacturers, dealers, government (LOL through taxes) earn that money which is spent by you. If you will not put any extra efforts, you will not be able to earn extra money. The more liabilities you have, more efforts you have to put in to generate that extra money. I am not sure what will be your take on these laws but they are fully applicable to me and that is what my heart whispers to me..........

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