What Do you imagine when you hear that at some point mountains of gold and other riches will fall on you? Unlimited potential for development? The opportunity to build an ideal and carefree future for dozEns of generations? Using Spain from 16th century As an example, I will tell you how with unlimited funDs you can not only go bankrupt, but also destroy your future for many years.
At the end of the 15th century, after the discovery of America, thousands of ambitious conquistadors and entrepreneurs set out to conquer new territories. They quickly discovered that these lands held countless treasures. Due to their technological advantage and lack of resistance to infectious diseases, the local population Was quickly conquered, and in the worst case, exterminated. THousands of tons of gold, silver, corn, sugar cane and other raw materials began to flow to Spain. For A while everything looked perfect. UnLimited flow of goods, wealth of the population and general increase in living standards. However, reality hit prEtty quickly. Due to the lack of any plan for managing wealth, the backward mind of the elites who Saw no sense in progressive reforms, endless wars and lack of investment in the economy and the agricultural sector, the country has been driven into poverty. The price of gold and silver fell several times, the currency was devalued and the prices of goods rose critically. In those days they said: “Everything is expensive in Spain except gold”.
The consequences of the failed management of funds were: an increase in crime; lack of trust in the authorities; backwardness in development for the coming years; falling out of the international arena as a European power.
Morale of the story:
Having unlimited funds does not mean being rich in the long term, without proper management, diversification of the economy, without a progressive vision and investing in the future, everything can be lost in a moment.
P.S.
This is an original text written by me. I am not a historian or a writer. History is my hobby and I wanted to share some interesting facts with you. If you liked the content and want more, please like and follow me.