The Biggest Financial Problem In The World Economy

There are many definitions of intelligence. To me, the most practical definition is as follows: “Intelligence is the ability to solve problems.” If you can solve math problems at school, you are considered smart. Outside of school, if you can fix a car, it is assumed that you have automotive intelligence. When it comes to money, it is thought that the more you can solve bigger financial problems, the higher your financial intelligence is.

Today, the world is facing a number of serious financial problems. Many of these are linked, while some are independent problems. Some of the most urgent problems are:

  1. The fall in the value of the dollar
  2. Increase in national borrowings
  3. The exponential increase in personal debts
  4. Increase in oil prices
  5. The widening gap between the rich and the rest
  6. Salary drops
  7. Export of jobs and workers
  8. Melting of savings
  9. And the most important of all is the lack of financial education

The questions that need to be answered urgently are as follows:

  • What can we do?
  • What are the solutions?
  • Is our Financial IQ high enough to solve these problems?
  • How can we avoid being the victim of these problems?
  • How can we protect our families and loved ones suffering from these problems?

Many of today’s financial problems still exist because they were not resolved when they emerged. Unfortunately, instead of raising the Financial IQ of the population, people were taught to wait for the state to solve their personal financial problems.

“We need to look after those who can’t take care of themselves.” you might say. I agree with this. As a civilized society, we must care for the needy. However, many people may be able to take care of themselves if they are trained. For this, the Financial IQ of the societies should be increased.

Due to the low financial IQ solutions found in the past, the demographic structure of today is the impoverishment of the people except the rich; even though more people earn more money. Unfortunately, the United States is not the only country moving in this direction. Many of the world’s economies are transforming into two-class societies: The rich and the poor… The upper class or the masses…

Simply put, the world is on its way to becoming a well-educated place of rich and poor people. The middle class is endangered. The real problem is that the world is beginning to consist of people who are good people, well-educated, hardworking, but still expect the state to take care of them when they retire.

Apart from these, there are two other problems: The first is that even Ponzi Scheme is not known what it is, since nothing related to monetary matters is taught in schools. The second, most of the people now deserve to be paid because they have made all their retirement payments.

However, if each of these people in the US starts receiving only $ 1,000 per month under Social Security and Health Insurance, the government will have to allocate an additional $ 75 billion per month for salary payments. This amount is equivalent to the cost of Hurricane Katrina or the Iraq War. The good news is we still have time to prepare for the impending financial hurricanes.

You can feed a person for a day by giving fish. And this is what we have been doing as the world for a long time. This is the thought that underpins Social Security and Health Insurance Services.

I want to encourage you to get rich because the world is turning into a two-class society; only rich and poor.

The middle class in Western nations is slowly but surely disappearing. If you want to stay in the middle class, you may need to consider living in China or India. These two countries are making their middle class bigger, rather than destroying it. But keep in mind that middle class members in China or India generally don’t live a better life than many poor Americans. This is because the middle class is too crowded in these countries. 

The rich will always spot opportunities, while the poor will bury their heads in the sand and pretend nothing has happened.

Let’s think a little bit. Let’s consider how we can take advantage. 

Can you identify the opportunities that may arise from this economic order?

Let me know what you think in the comments below.

You can also read WHY YOU NEED TO INCREASE YOUR FINANCIAL IQ if you are interested in. In this post, I have outlined how to improve Financial Intelligence.

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The Robin Hood Ideal

“Why don’t the rich pay?”

“The rich should pay more taxes and help the poor.”

“The only reason the poor survive so hard are the rich.”

We often hear about the idea of taking from the rich and giving it to the poor. When I hear such sentences, I think of Robin Hood. Robin Hood may have passed away from this world hundreds of years ago, but those who followed in his footsteps are still alive.

The idea of taking from the rich and giving it to the poor most troubled the poor and middle class. The reason why the middle class is heavily taxed is actually the Robin Hood ideal. The harsh reality is that the rich are not taxed. The middle class helping the poor, especially high-income and educated ones.

For better understanding, we first need to look at the historical process.

There was no such thing as tax in Britain and America before. Temporary taxes were imposed to cover increased expenses during wars. In the past, the announcement was made by the king or the head of state and everyone was asked to put their hands in their pockets. The introduction of taxation in Britain took place between 1799 and 1816. During this period, Britain was fighting against Napoleon. In America, the first taxes were introduced during the Civil War period between 1861-1865.

In 1874, England turned income tax on its citizens into a permanent practice. The United States made the income tax application permanent in 1913 after the 16th constitutional amendment was approved. Americans used to be against taxation. The famous Tea Party in Boston Harbor contributed to the start of the War of Independence, and the reason was the excessive tax rates imposed on tea. In both England and the United States, it took fifty years for societies to adopt the regular income tax application.

These taxes were imposed to be collected only from the rich. The poor and middle class were told that taxes were levied only for the rich, so the idea of tax was popularized and imposed on the majority. Therefore, the masses voted “Yes” to the law and the tax was legalized. Although the main purpose was to punish the rich, in reality it was the people who voted for him, the poor and the middle class who were punished.

When we examine the history of taxes, we are faced with an interesting perspective. As stated above, the implementation of the tax system was made possible by the masses believing in Robin Hood economic theories, which argued that income should be taken from the rich and distributed to all. But the state loved money so much that it soon imposed taxes on the middle class, and taxes spread to the lowest class of society.

The rich took this situation as an opportunity. Because they play the game by different rules. Even in the time of sailing ships, they established insurance companies for goods carried on the voyage. The rich invested money in the company to cover travel expenses. The companies was hiring seafarers who would sail to the New World in search of treasure. Even if the ship sank during the voyage and the crew died, the loss of the rich was limited to the money they invested on that voyage.

Knowing the power of the company’s legal structure is what makes the rich superior to the poor and middle class. Thus, although the masses advocated “buy from the rich,” the rich sooner or later found a way to overcome them. That was why, the middle class was also taxed. The rich got what they wanted because they were aware of the power of money.

Companies and governments always protect the rich. But many people who have never started a company do not know that a company is really “nothing”. The company is almost a file containing some legal documents registered in the government office in the law firm. It is not a big building with its name on the top. It is neither a factory nor a community of persons. The company is nothing more than a legal document that creates a soulless legal personality.

As soon as the income tax was made permanent by law, the benefits of companies came back on the agenda. Because the income tax rate of companies is lower than the individual income tax rate. Thus, the wealth of the rich was once again preserved.

As a result, this war between those who have property and those who do not have been going on for hundreds of years. This is the “take from the rich” war of the crowds against the rich. Wherever and whenever laws are made, this war will be fought. It will take forever. The problem is that the uninformed ones are the losers. These are those who get up early every morning and go to work and pay taxes. If they understood the rules of the game the rich are playing, they could play better too. Then they could gain their financial independence.


Please let me know that what are you thinking about the taxes below.

I strongly recommend continuing to read with WHY YOU NEED TO INCREASE YOUR FINANCIAL IQ.

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“Lacking of Money” Fear

What exactly is our relationship with money? Do we really want to earn money to fulfill our desires or do we work so hard because of our fears? What is the effect of money on solving problems?

It is natural that we always want to have better and more. In this case, we see money as a tool to achieve our desires. We think that the more money we have, the more pleasure we can achieve. This is partially true. However, we forget that: The pleasant times we create thanks to money actually do not offer solutions to our problems in our lives. We only keep busy and entertain ourselves in the short term.

Moreover, in this case, we tend to want more and more: more enjoyment, more pleasure, more comfort, more prosperity, more security… This is what drives us to work “more”. We hope to soothe our souls by earning more. However, this calming never happens. This psychology can be found in everyone, from the poorest to the richest in the world.

In fact, many rich people get rich because of their fear, not their desire.

As the world’s population ages and more people move closer to retirement, fear is reported to be more about money. Fifty percent of those who were afraid, stated that they were afraid of running out of money in their “golden years”. These people continue to live in fear of lack of money in their daily lives. Millions of them even suffer from insomnia with anxiety disorders. They hope that working and earning relieves them of their worries, but the opposite happens. As they earn more, their fear of being broke grows. So, these people are trapped in a cycle. They are possessed by worries of lack of money. However, they don’t admit it. They try to believe they are getting better.

Believing that earning more will save them from fear of poverty, people start hoarding money. They aim to get richer when they are rich, stack more as they stack, and save more as they save. This is an absolutely unhealthy psychology. And, it gets worse and worse. The more they increase their work and earnings, the more their anxiety increases. They are afraid of losing all their savings. The decline in their standards, well-being, or socioeconomic status has become more frightening for them.

We can find this type of person all over the world. These people believe that they can solve all their problems simply by earning more. The main thing is to see the fallacy of this belief. Because actually not all problems can be solved with money nor wealth is enough for a good life.

Here we can talk more briefly about another group of people. “Money is none of my business.” those who say. This group is those who run away from money. However, they still cannot stop themselves from working. Because these people are not those who do not care about money, but those who deny the importance of money. In fact, this psychology can be worse than having a fear of lack of money.

So what to do?

Our emotions are what make us who we are. Our emotions make us real. We have to face our feelings. We shouldn’t suppress or ignore them. Instead, we must observe, explore, understand, and resolve our anxieties. If we know how to direct our emotions, we will make our lives more livable. Obviously, what shapes our thoughts is basically our emotions. Ultimately, we must learn to use our emotions and thoughts for our own benefit.

You can also read SEIZE THE POWER OF MONEY if you are interested in. 

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