What is Surplus? The Commencement of Trade

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The creation of surplus wealth is a pipe dream for many–if not most–of the world’s population. But if you take a closer look at your life, you will see vast quantities of surplus all around you–if only you were looking in the right places.

Instead of being content with our lot in life, how can we do more with what we have been allotted? That question has puzzled and perplexed capitalists since we first embarked on the journey of More. But more what, exactly?

Real estate is often touted as one of the most conservative and stable of all investments. With the Earth as the stabilising foundation, we build a roof over our heads and give ourselves a safe home to return to as we hunt, forage and make just about enough to sustain us and clothe us. We can live off what we have been allotted and be quite content with our lot in life.

On the other hand, we can work with the Earth to provide us with so much more. We can build apartment complexes, employ technology to farm the land so that it yields a greater output which in turn provides us with a surplus to trade.

With trade, we can form meaningful associations with others who have surplus in places where we have deficits. As we give, take and reciprocate, excess wealth is created. With the excess wealth that is created from these activities, we can invest in budding enterprises or make charitable contributions to social impact causes.

A geometric representation of trade

But none of this can happen if we are content with our lot in life. If we are content with our lot in life, there is no impetus for surplus and no impetus to trade.

Why did traders leave their homes with their wares? To meet other traders, of course. With barter as a humble beginning, we created a complex world economy where we are all an interconnected web of More. More what, exactly?

More than what we had before.

Take a good look in the mirror. You have something that someone needs. What is that something and who is that someone?

Once you answer that question, the creation of surplus wealth will no longer be a pipe dream.

9 responses to “What is Surplus? The Commencement of Trade”

  1. […] What is Surplus? The Commencement of Trade […]

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  2. […] cannot grow or bloom without an investor; and without the entrepreneur, lenders would be sitting on surplus funds that are, in essence, doing absolutely nothing in the […]

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  3. […] middlemen. Individuals who possess more than their immediate consumption needs would deposit their surplus funds in a bank, thereby creating a large reservoir of funds that is cumulatively bigger than the sum of […]

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  4. […] types of resources. If they have an abundance of a particular resource, they will most likely trade the surplus with a country which needs those resources. While they are resource-rich in certain aspects, they […]

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  5. […] encountered many ‘unknowns’. The transaction was not as simple as trading what we had a surplus in. We had to figure out if our present needs would be met. The truth is, we don’t always […]

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  6. […] Most lived on farms which were situated outside the town. Farmers and their families brought their surplus to informal markets which were held on the grounds of their church to trade after […]

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  7. […] healthy exchange of our surplus resources is at the heart of commerce. It is what gave birth to the commercial enterprise. The premise: to […]

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  8. […] was a contraction followed by an expansion. The more focused work we did, the more we were able to create surpluses; which we we would then use to trade with foreign markets that were specialising in other […]

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  9. […] the ancient Egyptians, it was surplus grain that led to the establishment of one of the most successful economies of the ancient […]

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About Me

Dipa Sanatani | Publisher at Twinn Swan | Author | Editor | Illustrator | Creative entrepreneur dedicated to crafting original works of Modern Sacred Literature.