Hi, for my first post I'm going to look at basically why the hell I'm not a millionaire. The reasons, once I started a period of deep introspection, are very simple, (and put a damper on my plans):
1. I do not work - and as suggested by Smith (the guy on the £20 note) compensation for labour is one of a tripartite of sources for income.
2. I do not own any property, hence I cannot rent (which they would pay to me for giving them the opportunity to use that land to make a profit) out to people and make money that way.
3. I do sell things...like last week I sold a cricket bat for £7 and making a huge profit on the way too, but not exactly Forbes standard you may agree.
So basically to become a millionaire for all you budding entrepreneurs, you have to either become VERY talented at a job, Buy up land and rent it out or start selling things for a profit.
for every post I'll pose a question for the reader to answer, so as to make this blog an excellent source of combined information and for me to gain in knowledge.
The question for this post is in this scenario...I own a huge farm , I rent it out benevolently to some serfs, who decide to stay at home and employ their kids to work...the kids go up in arms with this arrangement and rapidly gain wages to compensate for their industriousness. Now the serf sells the produce for a high enough price to cover the rent and labour and to still have profit remaining. Good so far...DISASTER strikes, the pitchfork has been broken upon a particularly nuggety rock...the serf pays for it...is this another section of money making, thus proving the tripartite theory of rent, profit and wages wrong, or is this a cunning way of asking the answer for a question I am not entirely sure about?
Discuss.
14 comments:
how about the fact that these repair costs themselves will be the value of the rent, wages and profits. And this in itself is not a new source of money.
The repair costs come as part of the rent. You and the serf will have signed an agreement beforehand stating that all repair costs will be paid for by the serfs, unless the farm violates any health and safety acts, in which case you would be responsible.
Hi.. I am new.. like completely new to economics and investing and I would like to learn.. so reading from your first post..
I didn't get the question. I mean its natural that if when you are using an item which is rented get damaged you have to pay for it.
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