World Education

     “IT ALL PAYS THE SAME”

In this world, we still basically have 5 groups of people. When are born into this world, you will of course land into any one of these 5 groups with little hope of making it to the next group. Those groups would of course be: The Super Rich, Upper Class, Middle Class, Lower Middle Class, and Poverty.

The Super Rich are basically rich because they own the other four classes. That’s how they make their money. The next three classes (Upper, Middle, and Lower Middle) work for the Super Rich. The taxes payed by those 3 other classes go to the Poverty class, which in turn use that money to buy things from the Super Rich. It would be safe to say that the Upper Class, Middle Class, and Lower Middle Class support both the Super Rich and the Poverty group. Neither of these groups could make it without them.

The Upper Class consists of small business owners, doctors, surgeons, successful lawyers, wealth management people, and executives.

The Middle Class has the largest range of people with the largest range of wealth. These people would be anyone from business managers, school teachers, engineers, union workers, sales people, and government employees.

The Lower Middle Class are people that are either in debt or have single income families with that one income being average or below most typical wages.

And the Poverty class of course consists of people that do nothing but reproduce and collect a government check for it and live in government housing. They do nothing all day but watch Oprah and eat sugary foods.

When it comes to making money, here is the outlook for everyone that has gone to college and begins life in the corporate world. First of all, most jobs any more pay the same with a variation of about $10K - $20K in difference which is based on tenure, talent, and luck. So basically, no matter what you become, if you are an employee at a corporation, plan on making $45K - $60K out of college. After so many years, you will then hit the $60K - $80K range. If you go into management, then you get to be in the $80K - $100K range or a little more with bonuses. That’s it. That’s all you can ever hope to make. If you want to bust well through $100K up through $200K, then you need to become a successful doctor, lawyer that is a partner in a firm, a business director, or a very successful small business owner.

So what is the moral of the story? You will never make it out of the middle class (and yes I consider people making $100K middle class) if you work for a corporation. Although the executive jobs such as a director, president, board member, or CEO make much more than that, don’t ever plan on becoming one of these people. Those positions are reserved for certain individuals that are connected to the big money at the top. You won’t get in. The only way you can make it big, is to be on your own. You will never see someone living in a million dollar home that says they make their cash being an engineer or a middle level manager at a corporation. Go knock on doors in wealthy neighborhoods and ask everyone what they do. The answers you will get are this: “I’m an investment adviser with big connections”, “I’m a surgeon”, “I’m a lawyer and partner in a firm”, “I am a business owner”, and “I inherited the money”. You won’t have anyone tell you that they worked at XYZ International as a glorified blue collar worker, because that’s what most corporate employees are.

CONCLUSION

I’ll end in this. Assuming that capitalism will remain in America for many years to come, inflation will eventually put us into a virtual socialist society. How is this? Let’s say, 20 years ago, someone that was a mid-level employee made $20K per year. The person above him that is senior level made $40K. The senior level person made double the mid-level person’s salary and had twice the buying power. In fact, that single senior level person made the same income as a husband and wife that are both mid-level employees. Now, fast forward to today. Someone that is mid-level might make $60 - $70K and a senior level person will make $70K - $90K on average. That’s not double anymore. Get it? To match what was going on 20 years ago, the senior level employee would need to be making $140K. Then he or she would have double the purchasing power as the mid level employee. What I am saying is, the gap is closing between all of us “employees”. You know the phrase, “It all pays the same”? That phrase is coming true. Meanwhile, the gap between us employees and the super rich is increasing. I would call that socialism. So what happens at that point? More than likely the currency fails. So we move into socialism either way.

Categories: Financial