This is inheritance, trust funds, insurance payouts or lawsuit settlements. This is a scenario where a large sum of money is accessible to you where you have done nothing to earn, accumulate or deserve it.
If you possess unearned money it is like being a spectator in a game where you don’t know why everyone is so worked up about it. And why are those people on the field screaming in pain?
If you have enough unearned money and never have to work in order to pay for shelter, transportation or food you generally do not understand what everyone is going through. For you, there are no stakes. You are never in danger, don’t have to take risk, learn anything or work with others in sometimes frenemy environments.
National governments print money into existence. First there was none then there was a lot. Yes, it’s more complex but that is the gist of it.
Because government causes money to appear they take a portion back in the form of taxes and fees.
The real winners of government money are the suppliers, the industries they regulate which is all of them and then the workers and then the citizens who are given support assistance in the form of welfare and free stuff.
In Washington, D.C., it is a big business to be close to the people who distribute and regulate the release of money into the economy. These are the lobbyists, the defense contractors and the activists who agitate for free stuff.
They call him Uncle Sugar. And if you can get a “good government job” and ride it out through your life history has shown that you can have a very good existence while being in the worker class.
Finance is a big category. It covers the banks and houses that are chosen to handle the distribution of printed money. They control the stock market, bonds and loans. Working In finance is not work because it pays more than is needed to live and there is no way to lose.
For this discussion, finance covers speculation and investment in the stock market and other asset classes. There is more risk associated with pure speculation which is why smart people don’t do it.
This is the realm of everything from the self-employed to small businesses to automobile manufacturers. This is making money the hard way because you have to get it from the customer, who in general is not required to buy from you.
(I would place mandatory purchases such as health care and auto insurance at the intersection of government and finance. These are can’t lose money businesses.)
It is easier for business to prosper if they have a source of government funding, such as guaranteed mortgages.
But for most of us we are selling stuff to people in the tier below us. This is, again, difficult, and puts the smartest business owners in a very bad mood because they are smart enough to know they should have gone into government or finance.
Still, being a business owner is better than being in the next tier.
And I would say that, if you can’t get in the top 3 tiers, being a business owner is the only path to financial independence as well as dignity. A feeling that you are alive and in charge of your own life.
You are essentially wedged between those who have a guaranteed easy way and those who are getting crushed. Your route to victory is narrow and success is not certain.
This is labor. An hourly wage. A salary.
There are some outsized winners in this category such as in sports and those tied to companies in the stock market. Though I would say companies that IPO and make many millionaires who were formerly workers are essentially at the intersection of business and finance.
But the grim reality is most workers do not make enough money to support a family. They cannot get ahead so to speak because the cost of living is greater than their pay.
They are always under stress. They are always scared though I would say that most of them are bewildered. They are operating under the idea that work is honorable and should reward them for their effort. It’s supposed to work but it doesn’t.
Labor is a donkey that is worked until it is dead. If you are in the labor market you may want to think about getting a government job, and federal is better than state which is better than local. The lower tier government jobs are dependent on the ability to always be raising taxes and fees without the power to print more money to make it all better.
The grim nature of labor is why they are prone to drinking and drugs and entertaining themselves to death. It is why they believe in things that are not real and often are swindled out of what little they have by those who understand their true plight.
If you are in the labor market and want to start a business, read on: Why business owners need to be vigilant