The real shame of all this outsourcing, is that it is driven by our own
greed. We all want to see the greatest return on our investments, retirement
accounts, and savings, and this is how these companies accomplish that goal.
They cut the jobs of the very people that are investing in the stock to
If you go back just one or two generations, the "Average" man did not own
stock. It was just too expensive, and remained the realm of the wealthy
(ruling class). They had so much money already, that it was OK for a company
to return modest profits at times. Nobody had to jump ship on the stock
market, simply because they already had so much money, that it just didn't
matter. The rich could afford to endure a certain amount of losses, banking
on the overall trends to balance things out. Therefore companies could be
relaxed to some extent in the decisions they made regarding how they spent
the company's revenues. Some quarters were just better than others. No big
Then came the mutual fund . . . Everything changed drastically. Suddenly,
there were sources of investment money that could topple a major company
with one sale of it's stock. Before these mutual funds, no one man could
make such a large difference in the financial condition of a company,
regardless of how rich that one man was. But a mutual fund is managed by a
small group who control the money of thousands of investors. So when they
make a decision to sell, it can seriously hurt a company, regardless of how
big they are.
This put huge pressure on the upper management of these companies to show
significant profits all the time, not just when the market was favorable.
The average guy thinks nothing of making drastic changes in his investments
when they show even the slightest dip in performance. And the people who run
those mutual funds know this. So they demand unrealistic performance from
the companies that they invest the mutual fund's money in. And the companies
have to respond with any strategy that will give the bean counters the
numbers they need to publish for the earnings reports. And all of this goes
on without you or me knowing anything about it. We just make knee jerk
decisions when we decide who to invest our money with.
I don't know about you, but I ALWAYS choose to put my money in the best
performing mutual funds. Only logical decision right? Or have I been guilty
of perpetrating the very problem that necessitates this outsourcing
behavior? I wonder if things wouldn't have been better leaving the "ruling
class" to rule? Let's face it . . . They are raised in the Wall Street
environment, and they are trained to make these decisions. They have the
benefit of generations of experience behind them. Us little guys jumped in,
put a LOT of money and power behind a select small group of marginally
trained people, and now we are seeing the end result of our short
The very rich are still the very rich, and the working class is still the
working class. The only thing that has changed significantly, is that a LOT
of us have lost our jobs to the very thing that we thought was going to make
us rich. Our own greed has been our undoing. Less than one percent of any
given population ever changes ranks in the financial standing.
The best that a working class person can do to become wealthy, is to make a
multigenerational pact within the family unit. I watch the Eastern cultures
do it all the time. The Patriarch and Matriarch handle the "Family" wealth.
They see to the needs of the younger family members, who then become
contributors to the "Family" wealth. They build the pool of family wealth
over a long period of time, never touching the main pool of capital. Each
family member continues to contribute (a percentage) to the pool. In due
time, the family pool of wealth becomes substantial, and begins to pay
enough dividends to more than offset the input made in the early years of
the junior family members. At some point, there is enough to educate the
children without undo hardship on the family. Further down the line, there
will be enough income from investments to satisfy the needs of the family
entirely. Beyond that, the entire family will eventually be truly wealthy.
They then rise to the ruling class at some point. They have learned to
harness the real power of the family unit, in a way that nature has done for
as long as time itself. Bees, ants, church tithing and pack animals have
done this sort of thing forever. It is quite simply known as the "Hive
Mentality". It can and will work for humans too!
This can be started slowly. Just have each family member contribute 10% of
their gross income. Never touch the principal, and only disperse 10% of the
earnings once a year. The first few years it will only result in a piece of
candy or a soda pop. But think of what the numbers will be by the time your
great grandchildren are your age. They will likely get a fully paid college
degree. In two more generations, each family member will be able to draw a
stipend to live on. And so on, until your family has joined the ranks of the
"Ruling Class"! At this point, nobody in your family will need to worry who
has the jobs, they won't need them any more.
Just something to think about!
Offered in the spirit of friendship and respect :)