World Education

    What is communism? In my opinion, and wiki might have a different one, communism is simply a society ruled by a dictator of whom is financed by money elites. The citizens within this society work different jobs and have different occupations, but all make the exact same income. A janitor will earn the same pay as a doctor. But then again, here in America, with the failing healthcare system, a janitor that is union will make not very much less than that of a doctor. Maybe even as much as 3/4 of what a doctor makes in some cases, but that’s another article of course.   Anyways, people within the communist country all live near the poverty line, while the ruling elite benefits from the fruits of their labor.

So what is capitalism then? My own definition of capitalism is a free market economy where businesses compete against each other and people are free to work for whomever they choose. People also have different pay or salary rates according to their skill level or profession. People can also become entrepreneurs and start their own businesses if they are able to. This is something you wouldn’t be allowed to do within a communist country unless you were connected to the financial ruling elite that rule the country. Of course capitalism loses its luster when monopolies form through interlocking corporate directorships which in turn collectively reduces people’s wages across the board and price fixing occurs as well.  This is something that is going on today and has become increasingly worse.

So what do communism and capitalism have to do with the pschology of investing?  The idea of investing, or the psychology behind it, can be viewed in the same way as the relationship between communism and capitalism. So what is the relationship between those two? While communists pretend to despise capitalism, the fact of the matter is, capitalism feeds communism. In order for someone with communist goals to come to power within a society, they have to be financed. That financing is of course with money, and that money was made from business. So a group that lives within and dominates a free market economy can use the benefits it gained in the form of billions of dollars from that free market economy to finance a communist dictator. That group then owns the country.  Then, a free market economy will not be allowed within that country because the elites that own the country, its people, and its resources do not want any competition.  The want to remain on top permanently.

So, while each of us is still living in a free market economy, there are one of two realities: working for the system, or having the system work for you. Pretty much all of us are employees and have no choice but to work for the system. However, here is where the psychology comes in. While you work for the system, you can apply some of the fruits of your labor to finance a way to enable for you to have the system work for you one day. Most people simply just call this retirement.  But those are the people who just rely on social security and a lousy pension to support themselves.   If they are lucky, they have their small box house paid off, so all they need is food and medical care.  They use the rest of their dollars to buy lottery tickets.  That’s what their retirement amounts to.  What I am talking about, is financing your way towards having the system work for you so that you can retire, build a new house and have it paid off, travel, golf, have medical insurance, a new car every several years, and have more money growing from your investments than what you spend per year.  

So at least for now, while America is still a free place to live, and hopefully it will remain so, you can buy your freedom from corporate slavery. Just like capitalism feeds communism, you can use corporate slavery to feed financial freedom. Soon, I will write about how that financial freedom, once built, can be secured so that the risk of losing your investments can be minimized in times of bad economic conditions so you can continue to live comfortably and worry free.

Categories: Financial