Financial Talks

Wealth management can be seen in purely economic terms with no reference at all to any other societal concerns. If you take a purely capitalist stance then this is the way of dealing with wealth creating and ensuring that you have more than enough money.

Dealing with wealth management in this way has its advantages. First of all it is vastly more efficient than other socially aware programs. It also avoids some of the moral restraints that can stop business from making pure profit.

In the nineteen eighties Margaret Thatcher favored this kind of wealth management. She removed any barriers that could stop business from making money. In that sense she became the darling of the wealth management crowd.

That story of pure profit did not end well. Most of the ordinary people that had supported Margaret Thatcher began to desert her. They felt that the model of wealth management that ignored the common man was not acceptable. Unfortunately for Margaret Thatcher, she happened to be a very strong willed person.

No amount of persuasion or bullying from her staff was going to get her away from her programs. Consequently the country experienced a downward spiral of social deprivation that was further accelerated by the incredible wealth gaps. Of course the majority won in the end and she was voted out of her power.

Considering the alternatives

Following the end of pure capitalism people began to explore alternatives. Some models such as communism were out of the question because they would put a permanent end to wealth management. Even worse was to come when it was recognized that there is no such thing as communism. All that happened was that the poor were made even more poor.

The ruling elite would then become even more rich. Coupled with repression that many communist regimes created, this was not a model of wealth management that could be supported.

Socialism had its problems because it could impeded innovation. It also required people to be selfless and caring towards their fellow men. Now this is an objective for most religions but is not a practical ideal.

Most people have a natural selfishness which is hard to beat. The end result is that the very rich would make their wealth management in such a way that they avoided paying taxes for the common good. In fact there were many countries that were only too happy to act as tax havens for this purpose.

Conclusion

In the new world wealth creation has to be superseded by a concern for the people around you. That is why we have issues of international concern such as the environment. People who undertake wealth management are now required to sign up to these ideals. The alternative is to face legislative interference.

Wealth management under a hostile legislative regime is not a recipe for growth or development. Therefore people who are tasked with the duty to create and manage wealth have to be ethical in their practice. They have to consider sustainable development even if it is a remote issue from the central operating mechanism.