November
14
2011

-Mauritz Bekker-

Economic theory states that wealth is created when scarce resources are transformed into marketable products or services.  A resource becomes scarce when it has a value or a price attached to it. The traditional resources; land, capital, labour and management/entrepreneurship could be classified as scarce because they all have a monetary value attached. However, when we analyse these resources from an individual perspective, entrepreneurship is the only “scarce resource” that is in fact “not scarce”. Individual entrepreneurship is like oxygen available in abundance. Each of us has an abundance of entrepreneurship stored in our minds, which is free to our disposal and we do not need money to buy it. From a personal point of view will entrepreneurship for own use not cost any money and is therefore not a scarce resource.

With zero mineral and very, very limited agricultural resources, the community of Hong Kong proved once again that a free market climate where each person is free and willing to utilise his/her entrepreneurial abilities miracles can happen. The economic success achieved by Hong Kong is indeed one of the biggest success stories of the twentieth century.

It should also be interesting to the people thinking that a democratic government can create wealth. The fact is that Hong Kong did not have a democracy, not even government. Law and order was provided by Britain thousands of miles away. This remarkable success was largely the work of a large number of entrepreneurial minded refugees from mainland China.  They were in search for economic freedom and fled from the bondage of a communistic regime.  Hong Kong provided the right climate, in which they could apply their entrepreneurial talents for their own benefit. It is now history, but these people with their entrepreneurial mindsets, managed to create a world-class city from nothing.  It all started very small but as economic activity (the trading in solutions) started to snowball, Hong Kong grew into a monument of economic success.  The example of what happened in Hong Kong, has not only inspired the so-called free world to greater freedom, it has also inspired their gigantic communistic neighbour, China. This giant is now in the process of providing more and more economic freedom to its people. China is indeed starting to emerge from poverty, and is expected to fully become a true free market economy within the next decade or two. How wonderful it will be, if more people could also be free to use their talents to solve problems and to trade their solutions with us. The wakening of this giant, will surely add substantially to the creation of wealth in the world. We can also start looking forward to the contributions of Russia, India and Africa in the near future. This will mainly happen when the success of China starts to influence the mindsets and perceptions of a critical mass of people. This critical mass will help the free world to reach the tipping point, and the world economic scale will swing away from poverty to prosperity.  The mindsets of people will then have changed accordingly, and they will start thinking abundance as apposed to scarcity.  This new mindset of giving and not taking will only start developing when people realise the creation of wealth, is in fact a process of solving problems and trading in solutions. We need to understand that the creation of wealth is not accomplished by exploitation or by taking from others – it is created by the process of effective problem solving and putting more and better “economic” solutions on the market.

The more you give the more you will receive, is indeed the golden rule needed for economic success. The more and better ‘economic solutions” you “give to the economy”, the more money you will receive. These “economic solutions” are simply in the form of marketable products or services.

Democracy and the politics which is part and parcel there off are therefore not capable to create any wealth. A democratic society which do not provide it’s members with the very needed free market environment in which entrepreneurs can flourish, will stay a poor community.

The first world has shown that they can over-produce food at will. By applying their minds via new technology, it sometimes happens that food have to be destroyed in “wealthy” economies. This is done in order to prevent surpluses. This proves the fact that nothing needs to be scarce, not even food.  If the human mind has the ability to formulate a problem, it automatically has the ability to solve it as well.  It is estimated that the average human, at present, is only using a very small portion of their brain potential.  We are created with huge and diverse talents, and should start to use more of our potential.  It seems if we are only utilising the tip of the iceberg in relation of what we are capable of. We are indeed designed and capable to move mountains.


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