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REAL WEALTH REDISTRIBUTION * PATRICK MECONI AUTHOR OF NUMEROUS WORKS 1 .
has pending rights of trademark and patent of the p3 plan anything method of planning This book copyrighted @ 2011 by Patrick Meconi All rights reserved ISBN: 000-0-0000-0000-0 Jacket design by author vesion 12/07/12 2 .publisher CORNERSTONE PARTNERS INC. 623 SHIPLEY RD WILMINGTON DE 19809 Cornerstone Partners Inc.
6 8 9 10 11 12 13 . 14 15 18 19 20 21 22 23 . 24 25 ABOUT THIS BOOK CAPITALISM WHAT IS POOR WHAT IS RICH WHAT IS A CONSUMER WHAT IS WEALTH SOURCE OF WEALTH. WHAT IS PROFIT WEALTH ACCUMULATION IN GOODS WEALTH ACCUMULATION IN SERVICES WEALTH ACCUMULATION IN INVESTMENTS PERCEIVED WEALTH REDISTRIBUTION REAL WEALTH REDISTRIBUTION WEALTH ACCUMULATION IMPETUS VALUE OF WEALTH ACCUMULATION RATE OF WEALTH ACCUMULATION WEALTH DISPARITY 4
26 27 29 30 31 32 33 34 CONSUMERISM DILEMMA REMEDY CONSUMER & WEALTH ACCUMULATOR SUMMARY FINI IN APPRECIATION ABOUT THE AUTHOR OTHER WORKS BY AUTHOR 5 .
ABOUT THIS BOOK
More and more, each day, one hears the term “wealth redistribution” being used. Commensurate with the wealth redistribution term is the term “wealth disparity”. It’s being used more each day. The current perception that wealth redistribution goes from the rich to the poor is a myth. Real wealth redistribution occurs in the opposite direction, from the consumer to the rich. In the process the wealthier obtain a larger and larger share of the wealth and the poorer lose more and more of their “wealth” . This difference reaches a “disparity” state. This wealth disparity becomes a problem for society. This disparity can be corrected by peaceful means and, if not, will lead to forceful means. The peaceful correction can be accomplished easily. That's what this book is about. Since there can be several definitions for financial terms, the first part of this book defines financial terms as they ar used in this book.
quoted in writing this book. not an academic study. The book is simply the author’s thoughts from his observations. This book is. The observations. articles and other people. newspapers. exclusively or in part. come from information from many sources. over an extended period of years. This book has no bibliography. Nor is this book about wealth by thievery. magazines. also. books. 7 . the dictionary. This book is about wealth via legal means.This book is not about wealth from corruption. the internet. No credits or references are given to any source as no source’s writings are. the author’s personal experiences.
Capitalism is a natural economic system. Capital is the life blood of the capitalistic economic system: The 2 types of capital : • Money capital • Human capital As the song goes, you can’t have one without the other The financial community tends to treat money capital more favorably than human capital. When push comes to shove, human capital is expendable but money capital must be preserved.
WHAT IS POOR ? Some definitions: • Deficient • Inferior standard • Lacking in wealth • Opposite of rich • Very low standard of living • Without sufficient money • Worse than desired • Worse than expected • Worse than usual For purposes of this book poor will mean the opposite of rich in money wealth. 9 .
WHAT IS RICH ? Some definitions: • Having a great deal of money • Having extensive assets • Abundance of something • Plentiful amounts of desirable things • Opposite of poor • Very wealthy • Possessing the very valuable • Owning large amounts of For purposes of this book rich will mean the opposite of poor in money wealth 10 .
WHAT IS A CONSUMER ?
The concept of a consumer occurs in different ways. • A customer • A living person • A person who purchases goods • A person who purchases services • One who eats something • One who uses goods • One who uses services • One who uses something For purposes of this book, a consumer is one whose purchased item has depreciated in value or it has, literally, been consumed - the item no longer exists. Therefore the consumer is one whose purchased item can not be used to make a money profit.
among them: • A lot of money • A personal trait • A plentiful supply of a desirable thing • Accumulation of assets • An abundance of valuable possessions • Material prosperity • Opposite of poverty • Plentiful supply of a particular resource • Something of value • The state of being rich No matter what its form. wealth is more commonly thought of in terms equivalent to currency or money. This book deals with money wealth. 12 .WHAT IS WEALTH ? Wealth has many definitions and descriptions.
wealth must come from someone else. how circuitous or how technically done.SOURCE OF WEALTH Where does wealth (money) come from ? No matter how indirect. Only governments can do that. . 13 . Human beings cannot do that. Government does so by creating (printing) money. It cannot come from one's self.
The money gain is referred to as a profit. The party making and delivering the goods or services has a money gain or loss from the transaction.WHAT IS PROFIT ? Profit has many meanings In general. by someone else. It is the classical term used in commercial transactions. Thus. profit (money gain) is the method of accumulation of money wealth. 14 . it means the difference between what goods and services costs one to produce and what is paid. for those goods and services.
discovers a deposit of iron ore. The discoverer sells that deposit to someone for more than the cost of discovery. The cost includes the wealth give to the owner of the iron ore deposit and the wealth given to the miner of the iron ore.WEALTH ACCUMULATION IN GOODS WEALTH ACCUMULATION TRANSACTION #1 Someone. Thus a profit (wealth accumulation) was generated. The steel manufacturer sells the steel product to a steel fabricator for more than it cost. WEALTH ACCUMULATION TRANSACTION #2 The new owner of the iron ore deposit mines the iron ore and sells it to a raw steel manufacturer for more than it cost. somewhere. 15 . The cost includes the wealth given to the original owner of the iron ore WEALTH ACCUMULATION TRANSACTION #3 The steel manufacturer converts the iron ore into raw steel . Thus a profit (wealth accumulation ) is generated. Thus a profit (wealth accumulation ) is generated.
the wealth given to the miner of the iron ore. The cost includes the wealth given to the owner of the iron ore deposit. The steel fabricator sells that fabricated part for more than it cost. The automobile manufacturer sells his automobile to a car dealer for more than the cost. the wealth given to the manufacturer of the raw steel and the wealth given to the steel fabricator. Thus a profit (wealth accumulation ) is generated. Thus a profit (wealth accumulation ) is generated. The cost includes the the wealth given to the owner of the iron ore deposit. 16 . WEALTH ACCUMULATION TRANSACTION #5 The automobile manufacturer uses the fabricated part in assembling an automobile . the wealth given to the miner of the iron ore and the wealth given to the manufacturer of the raw steel.WEALTH ACCUMULATION TRANSACTION #4 The steel fabricator then converts the original raw steel into a part for an automobile manufacturer.
And. the purchaser will not be able to make any profit (wealth accumulation) from the sale. Ultimately.WEALTH ACCUMULATION TRANSACTION #6 The automobile dealer sells the automobile to a buyer for more than it cost Thus a profit (wealth accumulation ) is generated. in each one of those transactions. There is no other way for a person to accumulate wealth.the consumer. The wealth accumulated came from someone else. the wealth given to the manufacturer of the raw steel. Thus the one who purchased the automobile becomes a consumer and as such will have transferred (redistributed) some of his poorer wealth to all the previous wealth accumulators who created and sold the automobile. so it is with all goods sold. the wealth given to the steel fabricator and the wealth given to the manufacturer of the automobile. the wealth given to the miner of the iron ore. did not come from within each of the accumulators. all of the wealth accumulated in each of those transactions came from the transaction with the final purchaser . Thus the wealth accumulated by someone. Since it is highly unlikely that the purchaser of the automobile will be able to sell the automobile for more than was paid for it. 17 . The cost includes the wealth given to the owner of the iron ore deposit.
lawyers.WEALTH ACCUMULATION TRANSACTION IN SERVICES Just as wealth is accumulated in making that automobile. it is also accumulated in providing services. the receiver (consumer) has redistributed his wealth to the provider. To the degree that the cost of service to the client exceeds what it costs the professional to provide those services. the automobile buyer (consumer) will redistribute some of his wealth to the service provider of those services. 18 . It cannot be obtained from one’s self. Since it is highly unlikely that those services can be sold to someone else. the provider has generated a profit (accumulated wealth). And. of a service. That is true of all doctors. indian chiefs and all other service providers. Wealth accumulation has to come from a transaction with someone else. if the service was provided to any of the parties in the transactions making the automobile.
the investment has generated a profit (accumulated wealth). loans or any other way the clear intent is to accumulate wealth. if that investment is made to any of the parties making that automobile. To the degree that the investment borrower pays back more than he received. However it is invested. Wealth accumulation has to come from a transaction with someone else. It cannot be obtained from one’s self. the wealth accumulation is from the buyer of that automobile. The obvious and classical way to accumulate wealth is by lending money. in stocks. bonds.WEALTH ACCUMULATION TRANSACTION IN INVESTMENTS Although an investment may be considered a service it is usually thought of as being different. And. 19 .
and some other people all use the term to mean that the wealth of the rich is redistributed to the poor. 20 .PERCEIVED WEALTH REDISTRIBUTION Some wealthy individuals. some politicians. some economists.
from the wealthy to the less wealthy or poor. not the consumer. or how technical the route. circuitous. Therefore. all wealth (money) comes from the consumer. Real wealth redistribution happens in the exchange of goods Real wealth redistribution occurs with the provision of services Real wealth redistribution can be done electronically. Real wealth redistribution happens every day to everyone Real wealth redistribution occurs all over the world. 21 . real wealth redistribution goes from the consumer to the wealthy and not by that mythical route . No matter how indirect. Real wealth redistribution takes place with every economic transaction. are wealth accumulators. All the other money handlers.REAL WEALTH REDISTRIBUTION Wealth cannot come from one’s self. Real wealth redistribution occurs with every financial transaction. It must come from someone else.
22 .WEALTH ACCUMULATION IMPETUS Greed ! Some definitions of greed : • Accumulating more of • A form of addiction • Avarice • Intense desire for something • Selfish desire for something • To be richer than someone else • To own more than someone else. Greed is inherent in all individuals. Greed cannot be eradicated. So it is. Greed is the foundation of wealth accumulation. Greed is a human fault. It’s in the genesthe DNA. essentially. Greed is good except when it is unfair. a human form of energy. Greed is good except when it harms someone.
• Wanting to live an exceptional and/or an unnecessary life style. • The need for the rich to outperform their peers in wealth accumulation. Accumulating wealth is good until it harms someone financially. It is the economic “golden goose” of society. It satisfies: • One’s ego • The need for individuals to become financially successful. 23 . It fosters the innovation and creativity on the part of individuals and businesses It stimulates the production of better and less expensive goods. It creates economic decisions of value to society.VALUE OF WEALTH ACCUMULATION It is what makes capitalism work. • The desire of some of the wealthy to demonstrate their generosity by making large contributions to charity or some other cause.
Thus the wealth disparity grows at a faster rate.RATE OF WEALTH ACCUMULATION Since the law of compound interest applies to the accumulation of wealth. 24 . the richer one is. the quicker the accumulation of wealth.
Unless corrected by society the wealth disparity leads to non violent action such as protests & demonstrations. Eventually the wealth disparity leads to violent action such as property damage and bodily harm. Society tends to accept that difference as natural. There has always been a difference between the wealthier and the less wealthy. As the difference becomes a disparity. The poor consumer becomes desperate.WEALTH DISPARITY A definition of disparity is “great difference” Disparity is an appropriate word to use with money wealth. Everyone (almost everyone) wants to be richer. 25 . It is when the difference becomes a disparity that society begins to have a problem with the difference. Desperate people do desperate things. it reduces the life style of the less wealthy and makes the poor even poorer.
consumerism keeps the economy running smoothly. At its optimum. 26 . How to keep the economic engine running smoothly poses a dilemma. When consumerism fires cooler. When consumerism fires cooler it reduces the standard of living and downgrades the life style of the consumers. Consumerism also increases the wealth of the wealth accumulators. When consumerism fires too hot. the spark plug of our economy. it leads to inflation and economic “bubbles” with the subsequent financial disasters. Consumerism is the ignition system. it leads to decreased consumer confidence and to the slowing down of the economic engine. It improves the standard of living and betters the life style for consumers. Consumerism keeps the economic engine of capitalism working.CONSUMERISM The preoccupation with the acquisition of goods and services is an excellent definition of consumerism. Cooler consumerism also decreases the rate of wealth accumulation.
profit sharing can be used to pay for human capital. A By the obvious way. The consumer can then use consumerism to keep the engine running smoothly How to do that ? Its very simple . Some of the automobile industry are already doing that. directly or indirectly. C Giving more bonuses is another method. A number of wealth accumulating organizations give bonuses. A few current federal programs already do that. B Another means is by more profit sharing. 27 . Just as profit is used to pay for money capital.DILEMMA REMEDY To keep the economic engine running smoothy it is necessary to return some of the accumulated wealth back to the consumer from whence it came. to the consumer.by better use of existing methods. increase taxes of the wealthy and return the funds.
Another way to keep the economic engine running smoothly is with increased wages .greater than the rate of inflation. It deters the economic engine from running smoothly Increasing the minimum wage to a meaningful level will also help keep the economic engine running smoothly. who thought that a 50% share of accumulated wealth was fair. Decreased wages has the opposite affect. I got it all from them”. 28 .How much? A retail merchant. was reported to have said “Why not.
CONSUMER & WEALTH ACCUMULATOR
One can be both. One can be both, if one is consuming goods or services from a company and is also accumulating of that company’s wealth. One can be both, if one is consuming goods or services from a company while accumulating the wealth from a different company.
Real wealth redistribution eventually leads to the need for returning a portion of the accumulated wealth back to where it came from . thus creating a profit (wealth) The only one who cannot accumulate wealth is somebody (the majority of society) who consumes that something. 30 . The return of the accumulated wealth will provide the consumerism fuel needed to keep the economy running smoothly. real wealth redistribution.SUMMARY Since the advent of man. To one degree or another. This wealth return is accomplished by various means ranging from the peaceful and lawful to violent measures. Thus. wealth is accumulated by someone selling goods or services to somebody for more than it costs to produce. society will forever have to follow this cycle.the consumer. is actually from the poorer to the wealthier rather than from the wealthier to the poorer. In the process the wealthier obtain a larger and larger share of the wealth and the poorer lose more and more of their “wealth” causing wealth disparity.
FINI It has been very enjoyable putting my observations about wealth into words. Thanks for reading my book. It has also been very easy since I simply narrated my understandings of wealth from a lifetime of observations. 31 . I have tried to stick to the factual and pragmatic aspects of wealth as I have understood them without getting into the moral or ethical issues. I have tried to keep the language as simple as possible and to stay away from wordy explanations.
was understandable. Vicky and Mr. comprehensive and detailed critiques. only my second book.IN APPRECIATION To english teacher Keith Farrell for critiquing and proofing this book. for critiquing this book. that resulted in reformatting the book and getting it back on track. To Vince. who have become my professional family. Kevin and Mike. To Ms. for excellent. 32 . Russ. They also assured me (at age 86) that this.
ABOUT THE AUTHOR
Patrick Meconi is a retired Architect, who, frequently has been accused of being too simplistic in his comments. The author accepts that statement as a compliment. The author learned, decades ago that the complicated, difficult or involved is composed of simple aspects. That the way to overcome, perform or complete the complicated, difficult or involved is to break it down into simple tasks that can easily be accomplished. Then, to take care of each simple task by itself. The net result of or the sum of performing each of those simple tasks is the completion of the complicated, difficult or involved. Based upon that concept, the author developed a planning method ( p3 plan anything ). The author, throughout his career, has used that planning method to arrive at the simple aspects of the complicated, difficult or involved. The author has used that planning method to write this book.
OTHER WORKS BY THE AUTHOR The author has produced hundreds of p3 plans. In recent years he has written several books. Some of his works: YOU CAN PLAN ANYTHING book YOU CAN PLAN ANYTHING NO MATTER WHAT book CHRISTMAS book GRAMPS SCRAPBOOK p3 book PPP-01 PROJECT PERFORMANCE PLANNING p3 plan anything computer software program RWR-01 REAL WEALTH REDISTRIBUTION p3 plan anything computer software program MMM-03 MANAGE MY MONEY p3 plan anything computer software program GSB-01 GRAMPS SCRAPBOOK p3 plan anything computer software program 34 .
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