Sunday Nov 28, 2021

Property economics and guarantee of future earnings

To have a snowballing chance in this brave, new, globalized, and rigged economy, here’s something millennials need to know and understand. For all practical purposes, ALL DISCRETIONAL WEALTH IS BEING GENERATED FROM THE PROPERTY SIDE OF THE ECONOMY!

That’s right. There are two ways to generate income. You can work for him to earn a salary or salary. Or you can own capital assets that create wealth, such as stocks, bonds, real estate, machinery, copyrights or patents, etc. The owners of such wealth-producing capital assets receive dividends (that is, they generate income) strictly by virtue of their ownership.

That’s why best-selling author and motivational speaker Robert Kiyosaki says, “A job is a short-term solution to a long-term problem.” The long-term solution to the long-term problem, of course, is ownership of capital because, for all practical purposes, ALL DISCRETIONAL WEALTH IS GENERATED FROM THE PROPERTY SIDE OF THE ECONOMY, NOT THE EMPLOYMENT / LABOR SIDE . The employment / labor side of the economy has been stagnant for more than three decades, while the property side has expanded exponentially over the same period of time.

So what can millennials do?

So what can millennials do with this insight? For starters, in the wake of graduation, as they work their way into the brave new economy of the 21st century, they can search for employee-owned businesses (including worker-owned cooperatives and ESOPS) and submit their resumes. and requests. .

Guarantee future earnings

You see, employee-owned companies (ESOP, which is short for Employee Stock Ownership Plans) are organized in such a way that qualifying employees are rewarded with opportunities to buy shares (become semi- partners) in the company they work for using FUTURE. COMPANY EARNINGS (as opposed to your own savings or equity, which minimizes personal risk) AS A GUARANTEE. In investment circles, this strategy would be called Leveraged Buy (LBO).

THIS UNIQUE FORM OF CAPITAL CREDIT FINANCING IS ONLY ACCESSIBLE TO EMPLOYEES WORKING FOR COMPANIES THAT OFFER AN ESOP OPTION. More specifically, it is not available in employee-owned cooperatives, which is the next best option. And it has NOTHING TO DO with a company that offers stock options to employees, which is not only highly speculative, but depends 100% on the possibilities of financing with conventional guarantee.

Two streams of income

Therefore, without having to invest in savings or jeopardize the family home, ESOP employees develop TWO INCOME STREAMS. One from your salary or salary, and the other from your share-based dividends. The former is actively generated through the employee’s own time and effort. The second is the passive or residual income that is generated by virtue of your property.

Suddenly you see employees / workers who are benefiting from both the job / job and the property side of the economy, which, as we said before, is where ALL THE DISCRETIONAL WEALTH IS BEING GENERATED in the 21st century economy.

What else can millennials do?

So what else can millennials do in this regard? They can support political candidates who advocate for employee ownership as a business model. For example, Senator Bernie Sanders of Vermont has sponsored two bills in the United States Senate that are specifically designed to encourage employee property practices. The first (S.2909) “Provides programs designed to encourage employee ownership and participation in business decision-making throughout the United States.” The second (S.2914) “Creates a US employee-owned bank”, which is designed to support the idea of ​​using future earnings as collateral in the stock ownership transaction.

The more millennials know about the power of property, the better their chances of participating on the property side of the economy, where, as we’ve said before, all discretionary wealth is generated. In the process, the malignant wealth gap that threatens America’s democracy so much can be reversed. Corporate plantations that are built on the hierarchy and on the backs of modern wage slaves can be democratized. And the chances of millennials surviving, even thriving, in the 21st century economy will be maximized.

PS By the way, since this strategy is built on a foundation of private (not public) ownership, it is a capitalist solution to our problems, not a socialist solution.

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