Employment security is not an optimal choice.

Most HR departments boast about providing workers with stable and secure jobs… because people seem to demand such positions. People do not like changes.

Meanwhile, as most workers confirm, it’s much easier to find higher-paying job elsewhere, than in the current workplace. Where raises and bonuses typically are only a few percentage points above current pay.

Then why do so many people stay so many years at their current job? Isn’t it more affordable to move? Let’s compare a typical example.

Worker A (resident).
Year 1 – 2000$ a month.
Year 2 – 2100$ a month (5% raise)
2 year sum: 49200$, for 24 months of work.

Worker B (jumper).
Year 1 – 2000$ a month, but needs to learn and refine application documents.
Year 2 – 1 month vacation, then 2500$ (25% raise)
2 year sum: 51500$, for 23 months of work.

It pays to be a jumper. Unless residents are remunerated fairly. Which is never the case, because people are afraid of losing their jobs.

Differently about inequality.

Some factors of income inequality stem from background.

Being a child of a doctor, businessman or lawyer significantly and positively affect someone’s future success. That’s the fact, and I’m not gonna negate it.

Given the same starting points, people can differ too. Sometimes it boils down to intelligence. You can be incredibly smart and then all kinds of careers are for you. You can be an architect, a programmer, a manager, a doctor, a lawyer. You will then prime your kids in a good direction – if you also make a good job raising them.

But what about people that are equally smart, and not equally rich? There are additional factors in play of course:

  1. Choice of occupation. If you decide to become a worker in a more commercially valuable branch of economy, where you are highly mobile, you are set.
  2. Grit and perseverance. Some people become satisfied with the income of their 9 to 5 job, and come to house to have a rest. Some others not – they will work for their-selves in their private time, even on weekend and vacation.
  3. Spending and investment. Some people prefer spending their money on luxuries. They will buy elegant clothes, go to parties and concerts. Some of them like alcohol and drugs more than the other…. and some buy gold, stocks, bonds, real estate, cryptocurrencies, and are not afraid to waste time on writing blogs, learning to record videos, or trying to start a side business.
  4. Luck. Some people just win, by coming into contact with influential mentors, or by getting a good client, who pays much more than average.

Is it fair to punish more lucky for their luck? Maybe… but is it fair to punish more disciplined people for their discipline? Or punish savers for their savings? Absolutely not!

And this is what socialism does. All the time.

Small investments – in defense of capitalism.

The critics of capitalism rightly state that 1% of the population has most of the world’s wealth, and that owners of capital have monetary power to employ the working class, and then take away most fruits of their labor… cause the poor people are powerless to do anything other than work for the capitalists.

But hey, is that really the case? I think not, and the poor do have the power to change their lives… if they accept that wealthy people are wealthy for a reason.

Of course some rich people are cronies, that live of government’s support and externalize costs of their businesses to the society. But as the economy gets more sophisticated, it doesn’t neccessarily need to rely on one branch… and some of the seemingly monopolistic branches are fed by customers.

  1. Spend less than you make. That’s the crucial rule, that will allow you to put aside some money. It will also decrease the capitalist’s power, if you are able to avoid the charm of mass-advertising, and lets you choose what you will build with your money later. But in itself it is not sufficient.
  2. Work smarter, find ways to leverage your work, maximise it’s output and utilize it more than once. It starts with as simple steps as reading some books to specialize in one’s work and being better than that, to changing the employer once you gain practice if the existing one treats you poorly. Try placing yourself in the position of manager (if there’s a clear path of advance in your company and you trust it), or do something entirely different.
  3. Cut back on costly habits. A beer a day, which millions of average people drink, doesn’t seem like much, but it will decimate your already small savings. The same applies to smoking, going to clubs etc. Go work out and read a book instead.
  4. Cut back on TV, Facebook, blogs, YouTube and even Wikipedia. Choose quality content.
    While being informed and stimulated seems like a good idea, and is educational in general, it places you in the position of consumer of culture. And while you consume, you cannot produce. Meanwhile some wealthy people concentrate on producing more wealth.
  5. Live as efficiently as possible. Sacrifice bits of comfort.
    Not many poor people seem to care about the small savings or investments like energy efficient appliances. If the price of LED light bulb still turns you off, think about all the carbon emissions it will save, and the corresponding energy bill. If public transport fees or car costs bring you down, consider if you could live happily in a more cosy apartment, closer to the city center. It might seem costly to buy square meters at exorbitant price, but if you think you see some value in the city you live in, many people of your nationality will see it in the future.
    Maybe you’ll own a very, very small flat instead of a bigger one but hey, do you really want to pay mortgage, and heating, and tax, and transportation costs for something that large? Driving to and from work will take away at least an hour of your day so… it’s not worth it, however little you earn you’ll have less time for productive activities.
  6. Go beyond that, think like an entrepreneur.
    For sure you know something that could make your life, and the lives of people around you easier. Maybe it’s a service that you would happily use, and you know how to provide. Or a good which you would buy. Or some absurdity in the world, which could be fixed if a business got started, or if people used a product that doesn’t even exist.
    Than think again, and if it’s something that is legal, safe and you could do it… why don’t you give it a shot?
  7. Invest smart.
    There were many entities that change the world around us, from the established businesses (shops, cafes, barbers, hairdresses, florists, construction companies, mechanics workshops) to the technological disruptors (such as Uber, the Internet, cryptocurrencies etc.). Beware of tricksters and manipulators which promise you easy money in the things you don’t understand… but if you do understand some issues and therefore you think you are able to predict the future needs of the people, why not giving a business or investing a try?
  8. DON’T GIVE UP
    OK, some things that you will do will seem crazy and meaningless. Your friends and family might not believe in you, cause you might have some failed experiences. Maybe it’s not a perfect moment to dump your stable job but… if you feel that you can do something better than you did before, then do it! And please, be obsessed about reading and educating yourself in the right direction. It will pay sooner or later.

Fiscal freedom is the only ethical choice.

How is someone able to earn money liable for those that cannot do it?
In other words, why should anybody have to pay for others?

Think about it for a second. As far as there are many un-ethical ways to earn money, the only good way to do it is solving other peoples’ problems, by providing valuable goods and services.
It doesn’t matter what goods and services, business must provide (sell) more value that it consumes to be successful and make owner rich. And in perfect case there should be a voluntary exchange where smart people buy things for their benefit.

So, it a consumer is educated, knows his goals and needs, only businesses doing good things for people will be revarded. Otherwise consumer breeds bad businesses with his own money.

Governments around the world also want to solve some problems. That’s why they tax people to extract money needed for work on solutions. But is that really fair to take away what somebody got from others, because he got more than others?

I think not, if there’s no proof that a rich man did something wrong. If he does then fine, please take away his money so that wrongdoings are not profitable. Instead of punishing for being profitable and ethical, consider setting incentives for good behavior.

To eliminate societal wrongs, Governments might precisely tax the wrongdoings, not the production.

Why make tarrifs for imported food, and subsidies for local food? Is there any moral superity of local farmers, instead of the overseas farmer? Is the populace better of without the access to cheaper food?

Why subsidise renewable energy, which is taxed anyway, when you can just tax carbon emissions? You can fill up the treasury and promote green energy at the same time.

Why tax capital gains and inflate currency if you can let people trade freely without invoices and receipts? You can still tax and fine people if they are proven to do anything wrong, but let them make profit on doing good.

But to fulfill the entire potential of capitalism, one would need some mental revolution. Government will not change itself if people don’t demand the change. And people won’t, if they don’t see how they will be better off after the change.
Change is possible, I have undergone it myself. What is crucial, is unwinding some old habits of thinking which don’t help. One you are re-wind and think productively, you demand everybody to be productive. And help those who temporarily are not, to become the ones. The road is very long, but it is worth it. Everybody can better manage their lives, time and money. It’s just a matter of knowing, what you must know.