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There are eight factors that are needed in order to make the pursuit of success possible. Without these eight factors, success is impossible.
#1 Free Market System
Success can only flourish in a free-market economic system. Marxist-based societies remove the incentive to pursue success – the acquisition of wealth.
#2 Property Rights
When businesses and individuals are able to keep the fruits of their labor, this encourages individuals to take risks and pursue success.
Property includes:
- Income earned through individual efforts
- Income saved
- Savings invested and
- Anything acquired by that income, savings or investment income.
Another common name for the above is Wealth.
Thus, Wealth is property.
Property rights represent a critical, necessary incentive that motivates businesses and individuals to pursue success. Without the right to keep the wealth you create, the incentive to pursue success would be lost.
High income tax represents a legalized theft of property and acts as a disincentive to pursue success.
#3 Free and Open Competition
Competition is critical to success. Monopolies and Corporatocracy are a cancer on society because they interfere with open competition.
#4 Meritocracy
Meritocracy rewards those who succeed. Meritocracy therefore encourages the pursuit of success. In a free market economic system, winners are rewarded financially, and losers are punished financially.
This is good because it forces the losers to self-assess, learn and improve. Many self-made millionaires failed at least once in the pursuit of success. Failure is therefore part of the journey towards success.
#5 Sound Infrastructure
Federal, State and Local government plays an important role by building a sound infrastructure, which is necessary in order for businesses and individuals to be able to engage in commerce with one another.
#6 Safe Environment
Federal, State and Local government plays another important role by creating a safe environment that allows individuals to pursue success. In order for individuals to engage in commerce, they must feel safe.
This is why a strong national defense and a strong local police force is necessary.
A strong national defense secures a nation’s borders from external forces that could interfere with the functioning of a society and its economic system.
A strong police force promotes law and order which keeps social order from breaking down. When those engaged in commerce cannot do so safely, commerce ceases.
#7 Healthy Environment
Pollution disrupts the sound functioning of society. Those pursuing success must be able to do so without damaging the environment or being put at physical risk by an unhealthy environment.
Federal, State and Local government plays an important role in ensuring a healthy environment by creating and enforcing laws that maintain a healthy environment.
#8 Strong Family Unit
The nucleus of every functioning society is the family unit.
Family units are important because they act as mentors, teaching children the rules that enable them to grow up to become adults who contribute to society.
When the family unit breaks down, children grow up without these rules and become a burden on society. Government resources must then be diverted in order to deal with the fallout of the broken family unit. This diversion of resources makes it much more difficult for government to provide the services that are necessary to maintain a system that facilitates success.
Tom Corley is an accountant, financial planner and author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”, “Effort-Less Wealth”, “Change Your Habits Change Your Life”, “Rich Habits Poor Habits”, “Rich Habits: The Routines Millionaires Use Daily to Build Wealth” and “Rich Habits Wealth Academy.”
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