A recent NAC study demonstrated a positive correlation between income and satisfaction in the United States. This study claimed that money buys happiness and that this income disparity is not a coincidence in a capitalist country such as the US, where income levels are determined by supply and demand.
So which individuals soar to reach happiness and which sink into gambling?
Education is undoubtedly a key predictor of high income in the US. CEOs typically earn 270 times more than workers thanks to their education, but also as a result of their professional experience and unwavering commitment to achieving corporate goals. Education is thus key to finding meaningful job opportunities. By contrast, most medically uninsured people in the US do not have a university degree.
Do people inherit strength? It might be possibile, but a Harvard Review study demonstrates that only 30 percent of private companies are handed down to the second generation, and only 10 percent are passed on to the third generation. By virtue of utilizing a deposit system for wealth management, which could be a result of subsequent generations wasting most of the wealth despite their education level, some people believe that education alone is not enough as they consider education is the path to developing a free mind.
Although no formal consensus was reached on the definition of a “free mind,” there are those who think it is a mind that is liberated from prejudices, collective beliefs, or popular culture and art. I do believe that all these elements are important for shaping a critical mind that is capable of clear objective thinking and can rise above traditional ideas and concepts.
But why do weaker individuals have such limited prospects? Adam Smith said that poverty is intellectual, not financial. According to the CDCP, low-income individuals are more likely to succumb to drinking and smoking, and then they try to offset that by turning to high-risk investments, effectively gambling whatever left of their money.
Furthermore, Bloomberg reported that the increase in individual trading from 10 to 20 percent over the past decade coincided with the decline in American household wealth, coupled with the unjustified rise in the market value of numerous small businesses.
Bitcoin multiplied by over 12 times in the last three years, and according to Professor Nouriel Roubini, it does not have the same characteristics as stocks and bonds in terms of financial flows and distributions, neither is it a hedging instrument, like gold with its industrial uses. Until this very day, VISA still executes 4,800 times more transactions than Bitcoin per second, but the energy Bitcoin consumes is equivalent to more than 700,000 VISA transactions. Bitcoin is accused of raising carbon pollution levels; the energy consumed in mining Bitcoin is equivalent to that of New Zealand’s. This may limit major investment funds that have recently invested in cryptocurrency in an attempt to exploit impulsive individuals.
In the hopes of clarifying the big picture, I chose the US as an example of a capitalist environment that is based on supply and demand to demonstrate the capability disparity between strong people who can improve their prospects and weak people who get lost in their endeavours to attain wealth.
This article was originally published in, and translated from, Saudi Arabian outlet al-Riyadh.