Yet, today we look around and seem to be doing what everyone else is doing so why are things going so wrong? When did our businesses and careful financial planning (often under the care of so called professionals) degrade to the level of poorly run casinos. Everyone in one room, doing the same thing most of the time...losing.
It's been said by smarter men than I that life is ultimately a tragedy and that knowing this forces one to accept the supremacy of comedy. So it was that Shakespeare taught us that laughter is all that is left in the face of such absurdity and yet that very fact makes laughter the most valuable thing there is.
If this is true then perhaps the investor class will soon develop a sense of humour because their bank balances are getting more laughable by the day. Right along with the financial prospects of the rest of us after having spent so many years coupling our every financial transaction to the stock society whether we liked it or not.
Suddenly we have an epidemic of 25–30 year olds still living with their parents on maxed out credit cards
Canada hit record personal debt to income ratio in 2015 at 164.6 per cent. That means that Canadians owe just under $1.65 for every dollar of their disposable income. In her entire history, Canadians have never owed so much and made so little.
But our net worth is higher too, you say. A whole 1.8% increase, that's more even than the 1.6% debt ratio increase. Don't be fooled, my friends. I call this "hide the ball with the articles of financial authority". Welcome to the world of misleading numbers and the economic planning based on them!
How can you be worth anything if you owe more than you have and your assets are debt because you don't own them yet? That's just logic. That 1.6% adds interest payments based on a principle which can be any number, and yet is conveniently ignored by a focus on net worth. It contributes to inflation, which again devalues the currency so the 1.8% isn't really as much as you think it is when it comes time to actually spend it.
Further more, classic investment opportunities are denied our young people because interest rates are so low, allegedly to help those with debt already. When interest doesn't generate profit for a bank then it has no choice but to demand upfront collateral for big items like houses that an increasingly narrow segment of our population can afford while simultaneously driving desperate people to low dollar loans at sharkish terms.
Suddenly we have an epidemic of 25–30 year olds still living with their parents on maxed out credit cards. 40 somethings having to bring in a room mate again. Extra hours covering every spare shift a buddy can offer and watching the price of bread and milk bump up a dime every 6 weeks or so. Sound familiar?
And possibly worst of all, it encourages people to believe they are more fiscally solid than they really are so that they keep their money circulating in the systems run by the same institutional powers that set it up this way in the first place.
This is soylent green, people, wake up and take control of your money again or for the first time! Stop investing in a financial circle jerk presented via lazy susan for your glutinous convenience. Start buying real things from real people. It's time to own stuff again and its time to know who made it for you.
Insurance is not the same thing as accountability so stop thinking about covering your ass and start thinking about your country and the people you love cause they are the ones being hurt by these economic viruses and as with all viruses, we are the material of our own destruction.
Welcome to this first entry in my series on great capitalism practiced before stock exchanges socialized production. This collection of good advice will change your approach to business and reveal secrets of production lost to time and corporatism. More relevant now than ever before as independent producers struggle to find their place in our global economy.
As we progress through these lessons in pioneering capitalism from yesteryear the reader should notice a common element. That business is about friends, family, community, and country. That all value in a voluntary system of exchange is based on gratitude. Regular folk fuel the engine of enterprise so never forget your responsibility to take them somewhere worthwhile.
This advice is effective even with the government. A tax debt is an interesting tangle of knots many find themselves caught up in occasionally...in-spite of best intentions. Personal debt aside for a moment, a business tax debt is especially irritating for producers who often have to sacrifice everything they have to keep a business going during hard times. Sometimes you're just trying to float the business during decline so partners and employees have time to exit safely. Then at your lowest hour when the twinkle of a new business idea brings hope for a better tomorrow...taxman! As if you are the single reason in the world everything failed and here's the bill to prove it. But then again...nothing you can't handle.
We should be encouraging others to find something worthwhile to work for. A life long occupation of cultivation.
Respect and a healthy appreciation for the customer goes a very long way. And that starts with the self-respect and confidence you must impress upon anyone willing to give you that chance. Once they walk through your store front...the moment of opportunity manifests and all your preparation will be tested. While both may benefit; will a proper appreciation for the capital exchange produce a fair deal?
Purpose is the antidote to fear. Starting a business can seem overwhelming at the best of times, but when you believe in your capital and the production that cultivates it...when you know you have something to offer a market...a producer can change the world. Go give it a try.
This is a very important chapter. When I first read this I was inspired to look for new value in places I'd traditionally dismissed. Namely antique stores...and in one of those stores on a day like any other I found a framed print of an H. M. Bateman illustration. It showed a man leaving a bank with pride and the respect of his peers as he'd paid off his loan. Imagine a world where we pay our debts and are rewarded for it instead of being encouraged to spend needlessly by a financial services industry commodifying our debt.
I decided to start Verboten and build a studio to produce more capital the moment I bought this illustration.
Being based on gratitude all value in a free market depends on the human element. No matter how much automation promises the best it can offer is manufacturing efficiency. There is no replacement for human capital in the real time where the unexpected elevates routine beyond the domain of predictable returns.
One of the pillars of capitalism is the commensurate compensation for services rendered. All exchanges require reciprocal production of value. Creating new wealth is the goal. The more wealth in the world; less poverty, scarcity, fear and want. We can solve most problems with sincere partnership and honest trade.
When you work for people you respect every day is a boodle building opportunity. Work is happiness and a good boss helps us build our families, expand our property, and acts as a model for where we might one day be. Respect for all involved in the enterprise.