The Age of Paper Wealth is over. And that means the era of hyper-financialization is going to fade away.
I see this as good news.
Financialization refers to the increasing emphasis we’ve placed on financial markets, financial institutions, and financial activity over the last several decades.
All of these items may be important… but they should not dominate our economic activity. Especially not from within a fiat monetary system where all new currency is issued with debt attached (loaned or monetized into existence).
The growing emphasis we’ve placed on finance has come to the detriment of hands-on knowledge, skilled labor, the middle class, and traditional American values.
That is to say – nobody seems to know how to do anything anymore. Myself included. Finance is all I’ve known.
I’ve talked with small business owners all over the US in recent years. They all say the same thing – finding and keeping good employees is nearly impossible. Across the board this is the #1 challenge for a small business.
And it’s all because those who would be good employees just aren’t interested in small business. It’s not glamorous. And it doesn’t pay terribly well. At least not at first.
I can’t help but reflect on this dynamic…
When I was a kid, adults often suggested that we needed to get good grades so one day we could become a doctor or a lawyer. It was understood that those professions paid well.
At some point that must have changed. Today it seems that becoming an investment banker or hedge fund manager is painted as the ideal. They’re the ones making the big bucks.
I see that as folly.
For much of our history the primary means of professional education was the apprenticeship model. A young person would go to work at an older person’s business for at least a few years just to learn the ropes.
Once that young person had fully learned the trade, they became a “journeyman”. Sometimes they would remain in the same place and help their master expand the business – in exchange for much greater pay. And sometimes they would go off and do their own thing.
I see a tremendous opportunity inherent in a modern version of this model today.
We’ve shipped our kids off to college for decades now. Many of them then integrate into corporate America and never return.
That’s created a situation where the people who own small businesses all over this country are now around retirement age. I’m sure many of them would love to sell their business… but who are they going to sell it to?
That’s the opportunity.
Small business may not be glamorous, but it can be lucrative. HVAC technicians, roofers, plumbers, electricians, commercial florists – even the local pizza restaurant can make over a million dollars a year. Those operators with business savvy can even push their annual revenue into the eight figure range.
And that’s all possible in small town America where the cost of living is low, traffic is non-existent, and quality of life is high. What’s not to like?
Hyper-financialization taught us to ignore small business. But it’s the backbone of middle America.
And with a renewed focus on small business, we could put an end to the rat race. I think this will become more evident as we move past the Age of Paper Wealth in the years to come.
Of course, we still have to get our personal finances right. And we have to do so in a very difficult economic climate.
That’s what our event tomorrow is all about. We’re calling it Mistakes, Misconceptions, and Malinvestment. The initial broadcast will go out at 1:00 pm Eastern tomorrow afternoon.
We’re going to talk about why the traditional model for retirement planning just won’t cut it going forward. Then we’re going to talk about a new approach that can create true financial security.
My promise to you is that we’ll keep the entire production under an hour. And I’ll share some stories and insight that I haven’t shared anywhere else. I’m confident it will be well worth your time.
So please be on the look-out for an email invitation tomorrow just before 1:00 pm Eastern. It will contain the link you need to access the event.
See you there.
-Joe Withrow