[ExI] Leveraging temporary income

[Mirco Romanato]

Il 03/10/2012 23:49, David Lubkin ha scritto:
> I asked in "Re: [ExI] riots again":
>
>> A general question about jurisdictions that have substantial
>> oil revenues (Kuwait, Venezuela, Alberta, Alaska, etc.) is are
>> they doing anything useful for their future prosperity with their
>> current revenue. Beyond overseas investment into other
>> businesses, like buying Marks & Sparks.
>
> Mirco replied:
>
>> They are trying, sometimes.
>> But I don't understand how they could succeed when their society,
>> because of Islam, make free inquiry and innovation a capital sin.
>
> Venezuela, Alberta, and Alaska do not have Islamic societies.
> My question is about *all* oil-rich jurisdictions. More generally,
> what can any society do with a temporary (years or decades,
> not longer) surge of cash to create a sustainable advantage?

> Or narrow it down to an individual, since we're mostly individualists.
> You are given $1 million after taxes now, or when you are/were 25.
> What would you do with it to maximize its long-term benefit to you --
> Go to school? Invest it? Start a business? Relocate somewhere you
> can live off it indefinitely? Use $100K for survival training and
> equipment?
>
> (I chose $10^6 specifically because it's a useful chunk, but it's
> not 10^8 or 10^10, where the issue is how to change the world
> with it, not improve your personal lot. And I already posted that
> question a few years ago.)

What I would do is improving myself to start to think like a rich 
person, but this is what all of us should do anyway.
Many don't do it and albeit they are wealthy because they have a good 
job, they are not really rich. When the job go, their wealth go with it.
The same is with oil wealth and lottery winners.

Rich people is rich because they think in the right way.
We saw some group of people becoming rich, losing it all, relocating, 
working and becoming affluent again. If not them, their family.

Why these people / groups become rich notwithstanding the reversals when 
others stay consistently poor? And this is not something deeply linked 
with IQ or education. Apparently they are more adaptable and 
consistently find a way to work / save / improve and always have a 
positive cash flow.

As for society, I would reform their social structure to enhance and 
improve trust, private property right and freedom. They should do it 
anyway. But in this way, they will be able to use more efficiently any 
money surplus they have.

Mirco