World's Richest Woman's Advice to the Poor: Drink Less and Work More!

Are you poor? It's your fault - you should work harder and drink less, then you, too, can become a millionaire! That's the advice from the world's richest woman, Australian mining tycoon Gina Rinehart.

"If you're jealous of those with more money, don't just sit there and complain," she said in a magazine piece. "Do something to make more money yourself -- spend less time drinking or smoking and socialising, and more time working." [...]

Why are people poor? Rinehart blamed what she described as "socialist," anti-business government policies, and urged Australian officials to lower the minimum wage and cut taxes.

"The millionaires and billionaires who choose to invest in Australia are actually those who most help the poor and our young," she said. "This secret needs to be spread widely."

Gina, of course, made her money the old-fashioned way: she inherited it.

David Lazarus of The Los Angeles Times has the story: Link


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"...this new expense must either be absorbed by the company as the cost of using human labor or passed on to customers in the form of higher prices."

"Absorbed by the company" could mean turning some of those profits into wages. And we can't have that! Gods forbid the stockholders should have lower returns on their investments so that others may pay their rent AND buy clothes. That's just un-American.
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There's a point of diminishing returns, but many people don't try to reach it.

What advice could she have given that would have been more practical? I'm at a loss to think of anything.

"Nepotism trumps hard work every time." Sometimes, yes. Every time? No.
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If a company must increase the amount it pays its workers this new expense must either be absorbed by the company as the cost of using human labor or passed on to customers in the form of higher prices. Economists call this phenomenon cost-push inflation. An increase in the federal minimum wage create an increases in production costs, which subsequently results in an inflated price for consumers. Companies can either absorb the cost (unlikely), raise the price of their goods, or cut back on hours for their employees or lay employees off to keep prices in check.
The above was summarized from wisegeek.
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Not really. Hard work doesn't directly equal more money and laziness doesn't make you poor. I'm sure if people were paid based on how hard they worked, her miners would be richer than she is. I'm sure she's good at what she does, but not all of us are lucky enough to be born to a father who owned the world's largest iron ore deposits, then be personally mentored and groomed by said father to run the company after it's given to us. Nepotism trumps hard work every time.
Also, a relaxed and happy employee is a more productive employee. At a certain point there are diminishing returns on working harder. Drinking, socializing and generally enjoying life and not working yourself to the bone will yield better returns. So her advice sorta fails on all fronts.
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