The Nobel Prize in Economics for 2024 was awarded to 3 Economists namely: Daron Acemoglu, Simon Johnson, and James A. Robinson for their years of research that connected the prosperity of a Country to the strength of their institutions and respect for the rule of law.
Two of these men, Daron Acemoglu and James A. Robinson wrote the book, Why Nations Fail: The origins of Power, Prosperity, and Poverty.
According to their findings, a country that does not respect the rule of law and has weak institutions will remain poor because business activities which should generate wealth will be hampered by corruption and fear of loss.
On the other hand,
A country with strong institutions and respect for the rule of law prospers because Investors and Entrepreneurs go about their activities without fear.
Basically,
If there is Trust, there will be prosperity.
How does this affect you?
Think back to the last person or organization you did business with and they did a brilliant job.
Not only did they deliver on the promise of the product or services you paid for, but they also ensured you got maximum satisfaction using it.
If you need a similar service or are asked to recommend a reliable service provider,
Who would you recommend?
The business has won your trust and will continue to enjoy your patronage as long as the trust remains.
A healthy customer base built on trust will make any business rich.
Being wealthy is not necessarily having a lump sum of money stashed somewhere but having assets that are generating money for you.
Elon Musk does not have $454.1 billion in a bank account somewhere.
He has assets that are valued at this amount.
One of his key assets is Trust.
If he loses everything today,
Because of the wealth of Trust, he has built up over time,
Investors will happily give him money if he decides to start another business because they know he will deliver.
If the business used in the example above should lose everything and have to rebuild from scratch,
Do you think their customer base will stick with them?
Ofcourse, they will.
Is Trust the foundation for building wealth?
I would say yes.
What do you think?
In closing, you need to ask yourself these questions.
- Can you be trusted with money?
- Are people comfortable doing business with you because they know you will provide the value you promised?
- Can your employer trust you to develop the goods?
If you answered YES to these questions,
You are well on your way to building wealth.
If not, start working on it.
Have a great month ahead.
Don’t Miss | Who Is Going to Buy Your Product and How Are You Sure They Will Buy It – Dr. Emmanuel Sunny Ojeagbase
