Wealth Creation and the Two Cows

What does Wealth Creation have to do with the story about the two cows? In its most basic form, the story about the two cows compares economic systems by explaining what would happen if you had two cows.

  • Socialism: You have two cows. The government takes one and gives it to someone else.
  • Communism: You have two cows. The government takes both of them and gives you a share of the milk.
  • Capitalism: You have two cows. You sell one and buy a bull.
  • Nazism: You have two cows. The government takes both and shoots you.
  • Utilitarianism: You have two cows. A neighbor has none. The government makes you give your neighbor a cow, but the neighbor has to share some of his chickens with you.

The basic form of the two cows story originated to extol the benefits of capitalism over other economic systems. The joke has spawned a whole series of additional definitions.

For fun, try doing a Google search on "two cows joke" to find additional definitions, including definitions exploring the dark side of capitalism.

As a critical insight into wealth creation and how to make money, consider the basic difference between these descriptions.

Of the five definitions, four refer to the actions of government. Only capitalism refers to the action you take. And what is the action? You sell a cow and buy a bull. This means you use your resources to create a situation which has the potential of making more money and creating wealth.

Capitalism is not just about money, but about using resources to set up a system to make money. The secret of wealth creation is to emphasize the word "creation." You need to create a process that creates more money. With a cow and a bull, you have the potential for more cows and more bulls, which you can sell to make more money. This is the foundation of creating wealth.

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