In the old employment model, your company would provide slow but steady income growth; pay for vacations and holidays; organize health, dental, and vision care for your entire family; setup and manage a pension for when you get old; provide life insurance should you die while still working for the company; and much more.
Increasingly, the labor market or the professional world is unable to provide stability or challenge in today’s economy. While companies are again becoming profitable and its owners rich, we are seeing unprecedented downsizings and layoffs. We are seeing companies scale back traditional benefits and telling employees to go find health care coverage and insurance on their own. Many doctors report that the economic realities of modern practice have driven them far away from their traditional and time-honored roles as caregivers. And, the population is aging, yet many are not prepared financially to spend more years in retirement than they did on the job.
As a result, the Old Economy is dead, a New Economy is emerging and it is dismantling the old rules of commerce and the workforce.
The New Economy that is emerging is a massive interconnected economy and many call it the Individual Economy, in which people, ideas, technology, startups, and money are totally fungible. It bends, sways, and adjusts to new spawning opportunities since money likes speed.
The dream of entrepreneurship is alive and well today for anyone searching for financial freedom, time freedom, and the satisfaction of building a business on their own.
It is this rising of the New Economy, the Individual Economy, that is creating a lot of stress, challenges, and uprising on the streets.
The entrepreneur is the engine of the economy and as mentioned in the December post on this blog titled, “A Lesson from Santa about the Future of All Humanity,” entrepreneurs are the ones out there making an impact. They are starting up businesses, building things, creating jobs, and raising the standard of living throughout the world. In reality, they are the ones that have been creating all the jobs in the past 30 years.
And, the entrepreneur is the antithesis to the politicians and bureaucrats because entrepreneurs are the ones who benefit most from economic freedom.
As the economy becomes more regulated, as more handouts are provided to fat cat bankers and those with an entitlement mentality, the entrepreneurs will react to these onerous hurdles to success.
You have probably heard the rhetoric from the highly successful entrepreneurs with names like Gates (Microsoft), Jobs (Apple), and Zuckerman (Facebook).
Here is an overview of their perspective.
Entrepreneurialism is the melting place of ideas. Entrepreneurs have the desire, the know-how, and the goods but frankly find themselves fighting their own government.
What is changing American society is that we used to be people who did things by ourselves. We were brave. We went out there and we fought for the next generation. We gave more to our government than we expected back. Now it has shifted. Now there is a large portion of society, about half of Americans, getting checks from the government. It is an entitlement mentality.
You think you are entitled to all these things and if you do not succeed, it is not your fault. You think it is the companies fault and you will sue them or that it is the government’s fault and they owe you.
Today, we have a mind-set among a large portion of our population of entitlement which is very different than our parent’s generation where you come here with nothing and it is a gift to be a citizen here because there is such opportunity.
The American Dream is not a guarantee that you are going to succeed or a guarantee of anything. It is a guarantee that you will have equal opportunity to try to succeed. It is not a guarantee of equal results.
Expect these highly successful entrepreneurs, and others from the entrepreneurial culture, to use their power as a political wedge to demand the government stop taking, regulating, and restricting everything. Expect them to advocate a return to a system of honest money with the people in charge, not the politicians or the bankers.
Expect 2012 to be an especially dramatic year.
What should you do until the revolt of the entrepreneurial culture? Obtain more financial education and learn how to protect yourself during these trying times of massive money printing, fiat currency, and soon-to-be runaway inflation. Purchase precious metals, including gold, to hedge or protect your net worth against the decreasing value of the US Dollar, which is just paper money.
I favor a quote from Steve Forbes … Forbes says that pursuing additional financial education and the resulting increase in our financial literacy will open our eyes to being savvy with our money and using alternative wealth creating strategies; this will be they key to resolving our financial crisis.
To gain the necessary financial education, it is best to pursue association with, access to, and membership in, a wealth creation community. As a result, you will learn about alternative wealth creating strategies and consider investments in non-dollar denominated assets … perhaps emerging markets … perhaps energy assets that are inherently useful like oil rigs, hydropower, or methanol plants … perhaps precious metals, rare earths, water rights, oil, natural gas, potash mines, or gold mines … things hard to build, difficult to replace, and costly to substitute … definitely not financial stocks, definitely not retail stocks, definitely not commercial property.
For those wanting protection of their purchasing power in gold, there are several ways that may be appropriate to obtain this protection. These include direct ownership in minted coins, use of gold exchange traded funds, gold mutual funds, and junior gold stocks. Many are investigating having part of their IRAs in gold, silver, precious metals, and non-dollar denominated currencies.
In addition, for those that truly believe default of sovereign debt is the greatest risk we all face, it is wise to learn how to implement a multiple flag strategy to diversify this risk or provide protection against higher taxes, capital controls, hyperinflation, civil unrest, erosion of personal liberty, and the rise of a police state. With a multiple flag system, you consider taking preparations like, but not limited to, establishing a foreign bank account, purchasing some real estate overseas, seeking alternate sources of income, dual citizenship, and carrying multiple passports.
I will continue to provide examples of things we need to learn, the secrets of the insiders, as part of being savvy with our money, and introduce alternative wealth creating strategies, in future articles and updates at my blog over the next few weeks.
Finally, I want to thank Addison Wiggin with The Apogee Advisory of Agora Financial, as he was the source of some of the material mentioned in this post.
In closing, be sure to Meet Me at my website, WhoIsMikeFarrell; Read Posts about my Internet Marketing Business at aspenIbiz blogspot; and Obtain Some Tips About Being No 1 on Google at aspenIbiz My Go-To-Market Partners website; and Learn How to Live Longer at aspenIbiz My Life’s Advantage Today site.
As this is the first post on this blog for the year, I would like to provide Best Wishes for a Prosperous New Year!
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