Money makes money. And the money that makes money makes more money – Benjamin Franklin

A quote attributed to Ben Franklin, Money makes money. And the money that makes money makes more money. Ben was a smart man, and he understood the role of money in creating wealth.
Another quote that highlight the importance of money to create money is : You can not fry eggs with fart.

Money makes money. And the money that makes money makes more money

– Benjamin Franklin

Money makes money.

The first part of the quote contain the essence of capitalism. It is similar to the popular statement “The rich get richer“.
Money is needed to create companies and launch products, and the more you have money the more possibilities you have.
For example:
– A person that have access to $5000 in financing can barely launch a small food stand.
– A person that have access to $50 000 in financing can launch a small restaurant.
– A person that have access to $500 000 in financing can launch a high end big restaurant.
– A person that have $5 million in financing can launch a restaurant chain.

The revenue grows exponentially the bigger the project is. Thus the more money you have or can acquire the more money you can make.

Also take in consideration that if you don’t have access to wealth, you probably won’t risk spending your money on a project, and rather spend it on necessities.

And the money that makes money makes more money.

Here we get into the exponential power of capital. When the amount of capital is big, the money can be invested in a project to generate a lot of revenue, and the revenue generated can be invested to generate even more money. And in all honesty based on the initial size of the capital, this process can go way further.

Huge Money invested > Generate Big Money > (After some time) invested can Generate More Big Money > (After some time) invested can Generate More Big Money > can go on and on >(After some time) invested can Generate some Money.