Why Do The Rich Get Richer and The Poor Get Poorer

Peter Szabo presents a framework called the "Human OS" to explain why some people consistently get better results ("rich get richer") and others do not. He argues life experiences form memories, memories get meanings, meanings shape identity, and identity (mostly unconscious programs—~95% of behavior) determines thoughts, feelings, actions and thus results. Results feed back into new memories, creating self-reinforcing spirals. To change outcomes permanently one must change root memories; Szabo offers a tool called "memory flipping."
Chapters
The million dollar question, why do rich get richer, poor get poorer? Here's why I came up with this framework. I call it the Human os, the human operating system. And it's supposed to explain from a first principle standpoint, systems thinking standpoint, why humans do what they do, why certain people get the results they do, and why while at the same time others do not get the results they want to get. And fundamentally, it starts here. Look, we're born, we go through life, we go through different experiences. Positive, negative. Now these are all interpreted by us. And maybe let me change this to laser pointer so I can show we're right here. And these experiences get stored in our brains as memories, right? Each memory is given a meaning as well. What did this experience mean to me? Now, as you go through life and these memories stack up and they have different emotional intensity, et cetera, et cetera, they start to shape your sense of identity, who you think you are. And we all humans have this built in need. This is not a choice. This is a need to be consistent with who we think we are. If we're, if we say that we're a smoker, we're going to have a damn hard time giving us smoking because that's just who we are. If we say we're someone that's good with money, you're going to act consistently with that, right? And it's going to be hard to be reckless or careless about managing your money and vice versa. Now that is because this identity based on that principle I shared, is literally going to influence how you think, feel and act. Now typically only 5% of what we do of our choices are conscious are our deliberate decisions, 95% of it are automatic behaviors, unconscious programs, unconscious thought patterns, habit patterns. There's a study, and don't quote me on the details, but there's this wine shop somewhere and they've done these studies when they played French music in the background, the number of French wine sales have skyrocketed. When they played German music, they sold way more German wine. So you would think you go into the wine store and you're kind of picking out the wines that you want for yourself. But really we all have these biases. We're unconsciously being influenced simply by the background music, right? So if that little thing influences you so much, just think how else you're being influenced in your whole life. And they're automatic programs that are primarily based on who you think you are deep down, your sense of identity, your self concept, your self image. Now of course, wouldn't you agree, like the inputs, how you think, feel and act over time and is going to create your results, your reality. That's why I put this little man here with I equals R. It stands for identity equals reality. Or your identity is going to determine the results that you ultimately get. Now here's the interesting part. The results you get become more experiences, become more memories, and this becomes a self fulfilling prophecy. So, prime example, you're born, you're young, you go to school. And the example I always use is, say the teacher says something mean to you, right? Or classmates laugh at you like you're bad at math. Now say this is a highly emotional experience, kind of quote unquote trauma, and you replay it in your head, right? And you keep doing that. It's emotional. You look at it from many different angles and it soon becomes a part of who you are, soon becomes a belief about yourself. I'm just not good at math. I'm stupid. Now if that's how you approach the test, it can manifest in multiple ways. But say the person, you know, the kid just gets really stressed before a test or doesn't even try anymore because I'm just bad at math. Like, why even bother? I'm not gonna study, I'll fail again. And I don't, you know, I'll get embarrassed anyway. So they put in little effort, they may get stressed and therefore they're not good at math. It shows up in many different ways. But bottom line, because of their thought, you know, thoughts, feelings and actions, well, they're not gonna produce a good result in math. Now this becomes simply a new experience that confirms this hypothesis, that confirms this past experience, like, look, I told you I'm bad at math. And it just spirals again and again and it gets worse and worse over time and it just keeps confirming this bias that they created in the first place. Now, of course, none of this happens in a vacuum, right? This happens in an environment around your peer group where you go to school, where you live. And that has a huge effect on you as well. I mean, your environment shaped you in the first place, right? Your parents, your primary caregivers, your friends, your teachers. That's why a lot of people say you become the average of the five people closest to you. That's why. Because they also act as new inputs, as inputs of experience, right? So this is pretty much how this works. This is why the rich get richer and this is why the poor get poorer. And if you really want to start changing your life, you need to start looking at what started this process in the beginning, and that's your memories, right? There's so many self help courses and personal development programs out there, teach you how to set goals or how to do affirmations, or how to do a bunch of different things, or even talk therapy, etc. But if you look at it, they're all kind of working on the output, you know, they're all working on changing your thoughts or changing your feelings and actions. And the number one issue I hear from all the people is that the results don't last. It takes forever to get there. I take two steps forward, three steps back, and it just doesn't work at the end of the day. And the fundamental reason behind that is they're working on the symptoms, not the root cause. The root cause are the memories that shaped your identity and that ultimately shaped how you think, feel and act, which shapes your results and which just acts as more proof to the pudding, if that makes sense. So if you want to start changing this spiral in your life, if you're spiraling up or you're spiraling down, you need to change your sense of identity first. And how you do it. The best and only way I know of permanently and quickly changing your sense of identity is by going to the root and not working on how you feel, and not working on beliefs, but working on what is the building block of those things in the first place. And those are your memories. That's why I developed a tool called memory flipping and it should help you as well. So I left a link below. Check it out and hope it helps.
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