F%#* Salary! Ownership it’s the Only Thing That Counts.

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Dutch Merchants by Fritz Wagner (1896-1939)

“History is a gallery of pictures in which there are few originals and many copies.”
Alexis Tocqueville

We see a plethora of people complaining about the capitalist world. Bad wages, abusive goals, stressful relationships. This triggers a number of psychological effects like anxiety, despair, anger, depression, hopelessness and other harmful behaviors to health in the long run.

Let us give a historical context. The working relationship has always worked in a similar way. When the first tribes were formed, few enjoyed the work of the majority. The early empires were built through the work of many and few enjoyment. The emergence of the first absolutist states occurred in the same way. Feudalism, capitalism …all the systems we have experienced so far are summarized in a pyramid.

Few people enjoy the results of the activities carried out by many. The difference of our twenty-first century capitalist system is that the employee has a real possibility of a rise in the pyramid, proportionally greater than in other systems.

 

The logic of the system

“Because the truth is, talent does most of the work for you. Just as it has done since the beginning of record history. After all, who built the pyramids? The pharaohs or the engineers?”
Felix Dennis

“Property is theft!” would say the French socialist Pierre Proudhon. Depending on the ideological point of view may be. But it is legalized, it is the basis of modern Western civilization and the only system that has survived so far. Like it or not, fair enough or not, it’s there.

When you are an employee, you simply are a part of the owner’s design gear. And the owner, like all humans, is subject to abrupt changes of goals, thoughts, feelings. This includes the need for you to be useful to him.

The chance of an employee actually being rich is close to zero. Exceptions like CEO of Microsoft, General Electric and some Wall Street banks exist. But they correspond to an insignificant scenario of total employees. Just as there are people who win the lottery, we can not characterize the winners as the base scenario, but those who play and never win, that is, 99.99%.

Turning to the question: the profit of the business is not for the employee but for the owner of the business.  We will not pay attention to the question of justice and morality of this, because our objective with this site is not to approach philosophical and metaphysical subjects.

The participation in the business that makes it possible to earn profits. As much as the employee is exceptional, talented, a genius, and the owner of a John Doe, will be the last one to be rewarded financially to the detriment of the first. There is no magic.

 

The methods for obtaining capital

“All of us must first suspended faith in conventional wisdom. Let logic and evidence be the guide and our eyes will be opened to the reasons”
Bruce Bueno de Mesquita

This scenario is not teaching through traditional teaching methods. In high school and university the system is not addressed as it really works but rather the idealization of a theoretically fair system. This system exists only in social science books and the real world is very different. An objective and rational look is the best remedy for facing reality.

Now let’s talk about what your teachers never taught. There are only six ways of getting capital. You can be: 1) Inherit it; 2) Stealt it; 3) Win it; 4) Marry It; 5) Borrow It; 6) Earn It.

That’s right. Six possibilities. Think about the upsides and downsides of each of the options. We have only a few, somewhat obvious, findings:

1. Inheriting is interesting, but the intelligence to manage capital is crucial. Many families do not develop qualities in their heirs for such.

2. Stealing has a huge downside. Prison time and attorney spending can be huge.

3. Winning constantly in the game is a mathematically impossible task. You can make exceptions to the rule, but they are like lottery tickets. One thing about luck is that one hour it changes.

4. Getting Married presents the risk of divorce. We hardly see a middle man marry a rich woman. The opposite scenario is more likely. So be aware of the 50% downside risk in divorce. Even though there is a pre-nuptial agreement, we are tired of seeing it annulled in court.

5. Borrowing has the potential to leverage your business but can also lead you to a pit. It all depends on your ability to use leverage. Most people make loans to spend on consumer goods. This is pathetic. Use borrowed capital in productive methods and strictly control the cash flow for interest and principal payment.

We forget one, right? Wrong. It is obtaining through own work or the work of others. OWNERSHIP (recommended).

 

CONCLUSION 

“I employ a great many people smart than I am. That’s not false modesty. That’s a stone cold fact. The only two reasons they continue work for me and put money into my pocket are that, on the positive side, they enjoy their work, and on negative side, they fear losing what they have gained – challeging work, congenial colleagues, a certain status and the promise of promotion and pay rises.”
Felix Dennis 

The world will never be equal in relation to opportunity. The world is populated by humans and everyone has their own preferences and prejudices. The idealistic scenario built by philosophers and supported by the Social Sciences academy and media is surreal and utopic. The real world is crude and inflexible. Either you adapt or you will be swallowed.

Everything costs money. You should find out how to put money from people’s pockets in your pocket, in a way that is not criminal (remember the downside: prison, costs with lawyers, image with society, etc.). From this moment, you must own the business. It’s no use inventing the idea and not owning the business. This is to be an engineer who built the Pharaoh’s pyramids.

Remember: Vacation does not matter. 401k does not matter. Salary does not matter. The recognition of their bosses does not matter. The beautiful watch at the end of decades of work does not matter. The only thing that matters is ownership in the business.

“Work is of two kinds: first, altering the position of matter at or near the earth’s surface relatively to other such matter; second, telling other people to do so. The first is unpleasant and ill paid; the second is pleasant and highly paid”
Bertrand Russel

 

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2 thoughts on “F%#* Salary! Ownership it’s the Only Thing That Counts.

  1. TR,

    For wich country ou say that the best option is to be you own boss? To be ownership in the business?

    I’m seeing a lot of stores and small business closing their doors in Brazil. Take a look on this http://economia.estadao.com.br/noticias/geral,comercio-fechou-108-7-mil-lojas-e-cortou-182-mil-vagas-no-ano-passado,70001663111

    It’s very hard to be ownership of something cause we have a lot of taxes, the economy isn’t good at this moment and ever.

    Recently I was in Europe as you know and I could see a lot of small business that only the owners were working and sometimes one or two employees. Some places only works good in summer times.

    I don’t know about it. Maybe you’re the one who knows how to raise a business but it’s not so easy.

    Nowadays I think that the best option is to invest money kkkkkk

    Cheers!

    Like

    • It’s not easy for you to stand out in the market. You have to offer something beyond competitors.

      This sentence is valid for companies and employees.

      The difference is that as a company you have an unlimited UPSIDE. As an employee you have a limited UPSIDE: salary.

      Both pay taxes, both have difficulties, both can break.

      I still prefer the first. Reason: UPSIDE unlimited.

      PS: Next trip to Europe I will be together. You will not take the beautiful Czechs alone… HA

      Cheers!

      Like

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