2012年6月7日星期四

Ability Vs Production

Ability Vs Production

Recently, much attention has been brought to the topic of inequality... most specifically,mbt zum Verkauf, inequality of wealth and income. Underlying this attention is a fundamental belief that some people are able to earn a level of income that is disproportionately high relative to other people on the economic ladder. This belief stems from a misunderstanding of the difference between a person's ability and their production. At first blush, these two attributes feel tightly related... and in many respects they are.

Most people require some measure of ability in order to produce a product or service of value. The desire to develop ability is why people attend college,mbt schuhe günstig, and it is what most people perceive as the driver of our ability to earn an attractive income. The link that many people fail to appreciate is that our total value as an employee or entrepreneur is based on their ability, and amplified by the financial and organizational leverage of their business organization to create production.

This generates an effect that has caused tremendous misunderstanding. The compensation of corporate executives has received a considerable amount of attention in recent years. Many news reports show how CEO's earn a high multiple of the earnings for an average employee at a corporation. Most people who see this feel that there is no possible way the CEO can be 40,mbt zum Verkauf, 50, 100, or 200 times as valuable as the average worker. This is where the difference between ability and production becomes important. The CEO's ability to drive value is based on their ability, amplified by the organizational leverage of the business. The CEO does not possess 50 or 100 times the ability of the average worker, but is able to use organizational leverage to drive 50 to 100 times the results or more.

What Does This Mean For Me?

There is something important that each of us can take away from these insights about ability and production. In order for each of us to fulfill the greatest potential for our professional and financial achievement, we must find a way to employ organizational and financial leverage to amplify our ability so that it produces exceptional results. This means that our professional and financial walk should focus on both the acquisition of superior skills and the opportunity to leverage those skills so that they generate exceptional results.

Once we understand the importance of production vs. ability,christian louboutin france, it becomes apparent that a narrow view of ability misses much of the picture when it comes to driving results. Unfortunately,christian louboutin soldes, this has become fodder for politicians advancing a "class warfare" platform where they attempt to use people's frustration with the unfairness of life to garner support for their candidacy. The truth is that life is not fair, and most of us would be very unhappy if it were. The simple fact that a person is born in the United States of America means that they will have access to more opportunity than nearly 80% of the world's population.

People who live in the United States don't necessarily possess any more ability than people from other countries. However, they are able to leverage their abilities to a much greater extent than those other people to produce greater results. The dramatic inflow of immigrants to the United States stands as a testament that people seek the opportunity to leverage their abilities so that they produce greater results. From both our personal standpoint, and from the perspective of the larger economy, this demands a simultaneous focus on both enhancing our personal abilities and figuring out how we can leverage those abilities to generate greater productive results.

Equality vs. Achievement

In the current political environment,Christian Louboutin, much attention has been steered toward equality and the lack of equality in regard to incomes and achievement. The way that these large inequalities emerge in a free market is by competition for the best business talent by entities who can leverage that talent to produce very large results. What happens is that the people selected to lead these large enterprises are compensated very highly because the results they can drive exceeds their compensation many times over. To many people, this feels inherently unfair. However, it is a necessary component of generating optimal productive output for the economy.

The way that economies grow is by people and businesses creating new products and services. The way that individuals benefit from this is by the opportunities that emerge to both work for these new businesses and enjoy the new products that these businesses create. Thus,the path to affluence means that there must be freedom to create, risk of failure, and rewards for success. This is something that we must understand in our personal rise to achievement.

One thing that we should be careful to avoid is the assumption that all inequality is identical, and all profits are equal. Some companies profit from creating products and services that people voluntarily purchase, while others "profit" by lobbying the government for special contracts, trade protection, or other regulatory advantages. The former example is what drives economic growth. The latter is nothing but a drag on the real output of others. Unfortunately, the earnings reported to wall street make no distinction where the profits of a business come from.

This represents a conflict for those seeking greater equality, since the graft of people who use the power of government to enrich themselves appear to be the same as those who legitimately create useful products and services. There is also a cautionary note that we should take notice of, since the great affluence we enjoy in the United States can be dismantled quickly if the capitalist system is torn down. Similarly, the size of the government-entitlement regulatory system is not sustainable. In order to reclaim the future, we need to create both people of ability and opportunities to leverage that ability.

In the end,chaussures christian louboutin, most of us do not possess the ability to singlehandedly alter public policy. However, we do have the ability to impact the decision we make in our own life. Thus, we should all seek to simultaneously increase our own personal abilities and seek opportunities to leverage that ability so that it produces greater results. This represents more than an opportunity to create results for ourselves... it is a channel for growth of the larger economy through our efforts.Related articles:

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