To have a chance to snowball in this brave new globalized made up economy, here is something millennials need to know and understand. For all practical purposes, ALL DISCRETIONARY WEALTH IS BEING GENERATED ON THE OWNERSHIP ECONOMY SIDE!
That’s how it is. There are two ways to generate income. You can work for it in order to earn a wage or a salary. Or you may own wealth-producing capital assets such as stocks, bonds, real estate, machinery, copyrights or patents, etc. Owners of such wealth-producing capital assets collect dividends (ie, 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 equity ownership because, for all practical purposes, ALL DISCRETIONARY WEALTH IS BEING GENERATED ON THE OWNERSHIP SIDE OF THE ECONOMY, NOT THE JOBS SIDE. /JOB. The labor side of the economy has been stagnant for more than three decades, while the property side has expanded exponentially over the same period.
So what can millennials do?
So what can millennials do with this valuable knowledge? For starters, after graduation, as they navigate the bold new economy of the 21st century, they can search for employee-owned businesses (including worker-owned cooperatives and ESOPS) and submit their resumes and applications. . .
Guarantee of future earnings
You see, Employee-Owned Businesses (ESOPs, which is short for Employee Stock Ownership Plans) are organized in such a way that qualifying employees are rewarded with opportunities to purchase stock (become partial partners ) in the company they work for using FUTURE COMPANY PROFITS (as opposed to their own savings or equity, which minimizes personal risk) AS COLLATERAL. In investment circles, this strategy would be referred to as a Leveraged Buyout (LBO).
THIS UNIQUE FORM OF EQUITY CREDIT FINANCING IS ACCESSIBLE ONLY TO EMPLOYEES WHO WORK FOR COMPANIES THAT OFFER AN ESOP OPTION. More specifically, it’s not available in employee-owned co-ops, which is the next best thing. And it has NOTHING TO DO with an employee stock option company that is not only highly speculative, but relies 100% on conventional collateral funding possibilities.
Two streams of income
Thus, without dipping into savings or jeopardizing the family home, ESOP employees develop TWO STREAMS OF INCOME. One from your wages or salary, and the other from your stock-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 ownership.
Suddenly you see employees/workers benefiting from both work/work and the property side of the economy, which, as we’ve said before, is where ALL THE DISCRETIONARY 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 employee ownership as a business model. For example, Senator Bernie Sanders of Vermont has sponsored two bills in the US Senate that are specifically designed to encourage employee ownership 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 be friendly to the idea of using future earnings as collateral in the stock ownership transaction.
The more millennials know about the power of property, the more likely they are to participate in the property side of the economy, where, as we’ve said before, all discretionary wealth is generated. In the process, the malign wealth gap that so threatens American democracy may be reversed. Corporate plantations that are built on the hierarchy and on the backs of modern wage slaves can be democratized. And millennials’ chances of surviving, even thriving, in the 21st century economy will be maximized.
PS By the way, since this strategy is based on private (not public) ownership, it is a capitalist solution to our problems, not a socialist solution.
