That's an oversimplification as it has a bunch of assumptions built in - competition, etc. - but it more or less states that every company needs to constantly improve, find customers, weather losses and so forth. To be competitive, it needs to be right on the edge of destruction.
To see how true this is, I recommend Industry Canada. It's difficult to work with at first but has a ton of data and information. (Build your own profile -> 2004 link -> <leave as is and click 'Continue'> -> sort through the data you want)
The amount you make per unit of time doesn't adjust much for how hard you work (it does some, normally)... but the harder you work, the more you earn in aggragate. However, you are bracketed in what the market will pay you. That is, if you make (your example) toy dragons that no one wants, working hard will mean you make more of them: even a small proft would become larger... but in the end, it wouldn't be a terribly good return.How hard you work had no relation to how much money you make. How much you make i think depends on how much the market pays you i think.
The same goes for accumulation - work a cent under expenses, and you grow poorer everyday. Work a cent over, and you grow richer.
The two are entirely different. Knowing how the economic system works is handy, but it's an academic profession that watches the actors who know how to work within the system. It's like asking a sports commentator how to improve a sports team. They'll have lots of opinions and can even be right, but they never played - they don't have the natural ability or talents that is required to be a player.And I don't want to be the top 10 -20%, but i want to know how the economic system works and how wealth can be accumulated.
Useful, but generally descriptive. If you don't want to be in the top 20%, then you can simply save about 10% of your income over the better part of 30 years and you'll certainly fall in the 20-40% category.
True, but that's like saying that a sports player doesn't know how to score, then asking how they can let their team score. The answers are as varied as life is.The reason for most business failure is that they do not know how to find customers. There are millions of business competing against each other, what can make your business stand out?
You don't lose it - you trade it. A company "loses" money when it buys inventory to sell, or it "loses" money when you pay your employees. Having money for money sake serves no purpose.Well it depends on what you planned to do with the saved money. Most people plan to spend it on something later on, which is a way of losing it. It is a matter of losing it more quickly or slowly. Most people do not know how to accumulate money other than income ftrom the boss and bank savings interest.
There is nothing wrong with working and saving. It's safer, easier and less work than starting your own business/etc. If you don't love the game, it's really not worth it.