Future Of The Global Economy (Part 2)
Is the economy coming back? I don’t think so.
In the wake of the coronavirus, unemployment is rising as people’s jobs are becoming obsolete. This means there will be an even greater divide between the haves and have-nots, the rich and the poor. The middle class will shrink like the polar ice caps.
Another reason the rich are getting richer is that the poor and middle class focus on the small picture.
Most people have been taught to work hard, pay taxes, save money, buy a house, get out of debt, and invest in the stock market. Most people are not aware that they are working for the wrong kind of income.
The speed at which you can change and expand your context in order to adapt to the changes in the business world today is critical to every one of us who wants to succeed financially. The gap is no longer between the haves and have-nots.
Today, the gap that is changing the most rapidly is the gap between the middle class and the rich.
Saying it bluntly, if you have a slow Industrial-Age plan, or context, you are being left behind—not by your peers, but by younger people with faster minds and more accelerated ideas.
Immature Form To A Mature Form
We are now in a new economy—the post-corona economy. We are also in the Information Age, and it is time that we begin to grow up and mature financially. Leave government safety nets and social programs for those who really need them.
When I left high school, I thought I was grown up and knew all the answers. Today, I often say, “I wish I knew back then what I know today.” There are many things I did in my past that I am glad I did, but I would not do them today. Growing up means doing things differently as we grow older. To continually do the same old thing every day of your life is, in many ways, arrested mental and emotional development. The world is changing, growing more sophisticated, and so should we.
One of the ways the world is changing is that there is not much job security and financial security anymore. Companies are pushing people out into the cold, cruel world and saying to them, “Don’t expect us to take care of you once you stop working for us.” They are also saying, “You’d better count on the stock market to take care of you once you stop working.” Yet in the real cold, harsh world, to expect the stock market to always go up is childish fantasy and as silly as expecting the tooth fairy to pay for your dental bill. Growing up means being willing to be more and more responsible for yourself, your actions, your continuing education, and your maturity. If you want to have a rich and secure financial future, it is imperative to know that markets go up and markets come down and no one is there to protect you.
The faster we grow up and face that reality, the better we can then face the future with greater maturity. In the Information Age, more of us need to grow up and grow away from old Industrial Age ideas of expecting someone else to be responsible for our job security and financial security
Entrepreneurship Is The Future
The good news is that it has never been easier and less expensive to become rich. All you have to focus on is serving more and more people. In John D. Rockefeller’s day, it took him approximately 15 years to become a billionaire. For him to become a billionaire, he had to acquire many oil wells and create a network of gas stations and gasoline delivery systems. That took a lot of time and a lot of money. Today, it would take billions of dollars to build what Rockefeller built.
It took Bill Gates approximately ten years to become a billionaire. He had the foresight to use IBM’s network to grow rapidly. It took Michael Dell and Steve Case, founder of AOL, less than five years to become billionaires. One entrepreneur used the growing demand for computers, and the other used the explosive power of the Internet to tap into the power of an explosive network.
For each new generation of entrepreneurs, it takes less time and less capital to become billionaires, due to the advent of new networks. You can too.
If you have solid business fundamentals and experience, you can market to the world over the Internet. As the cost of doing business goes down, the power of the network goes up. One of the reasons Steve Case and AOL (a much younger person and company) could buy Time Warner and CNN (an older company with older directors) was simply because AOL had a bigger network. The bigger the network, the more economic power.
I have often written about people who became very rich in their spare time. Many of today’s ultra-rich started their business at home on their kitchen table, just as Hewlett-Packard was started in a garage and Dell Computer was started in a dorm room. So even if you have a low-paying job, you can still become very, very rich if you start a business at home or in your garage, all in your spare time. Remember, “It is not your boss’s job to make you rich. Your boss’s job is to pay you for what you do. It is your job to make yourself rich at home and in your spare time.”
It has never been easier to become rich beyond your wildest dreams for less effort and less start-up capital. I know that many of the high-flying dotcoms went broke, as many of us thought they would. In my opinion, the dotcoms that went broke may have had the right context, but they did not have the right content. Many dot-coms had the right idea, but too many lacked true business experience and business basics. Many were simply trying to get rich on a mania, rather than to truly serve more people.
Rich dad said, “Your job is to position yourself and be ready when the opportunity presents itself. It is okay to be five years early, but not one day late.”
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Editor, Rich Dad Poor Dad Daily