I know you will not argue with this statement. “The value of everything is originally equal to zero.” The best way to understand this concept is to explain it with the first law of the 3 laws of value in 3S Rules.
The first law of value states that the value of anything is originally at a raw state to be harnessed. What does this mean? It means that a child that will be a doctor in the future has zero medical knowledge when he was an infant. It means that when a chair and table were trees, their value was zero. In fact, the monetary value (GDP) of countries grew from zero upwards.
This is to point out that value is a function and a creation of man. The wealth of nations measured as GDP were built by men from Zero level. The men that build the wealth of nations are called entrepreneurs. The purpose of this article is to show you how Jeff Bezos is building the wealth of the USA through Amazon and how you can apply it to your nations.
Building the Wealth of Nations – The Example of Jeff Bezos of Amazon
The man Jeff Bezos was not known not until he founded Amazon. That means there was nothing like Amazon until Jeff Bezos created it. When you imagine the enormous impact of this company to the United States and the entire world you will be amazed. This is how men build the wealth of nations.
What did Jeff Bezos do differently? How did he build a company that is now worth $1tn in market capitalization and become the richest man. Here are the three Things he did differently.
- The Entrepreneurial Opportunity:
Jeff Bezos was a very intelligent young man who graduated from Princeton University where he studied computer science. He left there to work for DE Shaw where he rose to become a senior and a valuable staff.
One of those days he discovered a number on the internet that changed his career trajectory forever. He found that the internet was growing by 2300% monthly. This was an important discovery for him, which he analysed to mean that in the nearest future people will start shopping online. This was an insight and an entrepreneurial opportunity.
But there was one challenge. What decision should he make?
- The Entrepreneurial Decision
He has two careers before him that he needs to make a decision on. Should he continue as an employee in DE Shaw where he was doing well or should he resign and focus on the entrepreneurial opportunity at that time present? What would be your decision if you were to be in Jeff Bezos’ shoes?
The men who build the wealth of the nation are risk takers. They always go against the tide to experiment business opportunities.Jeff decided to resign from his paying job at DE Shaw where he was doing well. But there were many challenges he would face with such a decision. There will be no paycheck anymore and other associated problems.
- The Entrepreneurial Result:
Jeff decided to explore his internet-discovered idea. That decision gave birth to the Amazon company which was a pioneer of the e-commerce industry. In May 1994, Amazon was launched, and three years after that it was listed on the NASDAQ due to the success of the business idea.
This decision made him the richest man in the world and his company is currently one of the leading companies on valuation.
This is how this entrepreneur has built the wealth of his great nation, the United States of America. For you to be among the entrepreneurs that will build the wealth of your nation, you must be willing to make an unfavourable decision that Jeff made.
How Amazon Improved America
- It creates employment opportunities
The establishment or the founding of Amazon has created thousands of direct and indirect jobs. One of the macroeconomic goals of every nation is to achieve a low rate of unemployment. This is exactly the impact of Amazon. According to Statista Amazon has 789,000 employees in 2019.
- It increases the governmental revenue
The operation of this company in the United States has automatically increased the government revenue of the nation. Payment of income tax, corporate tax, etc to the federal and state government will help the government to meet its obligations to the citizens.
Here is the report fromAmazon Blog about Amazon’s 2019 Tax payment;
- Over $1 billion in federal income tax expense.
- More than $2.4 billion in other federal taxes, including payroll taxes and customs duties.
- More than $1.6 billion in state and local taxes, including payroll taxes, property taxes, state income taxes, and gross receipts taxes.
- It raises the standard of living
Employment creation simply means more people working and earning. It means as they earn, their standard of living will rise due to the increase of their disposable income. Will you work for amazon if employed? I guess your answer will be yes because of better conditions of work when you work with the company.
Jeff Bezos is estimated to be worth about $121.1 billion. This makes him the fifth richest country in Africa if he were to be a nation in the continent.
We need African entrepreneurs to do what Jeff Bezos did in building the wealth of his nation. Will you take up this challenge?