The employment system we have today was implemented during the Industrial revolution. As the world shifted from an agro-based economy to industrial manufacturing, a lot of people migrated from the countryside to the centers of production (cities). As motorized equipment replaced people in the field, and new industries came into existence, more and more people started working in the factories.
To make sure that factories had a stream of qualified employees, public schools were developed, and standardized tests were administered to ensure quality control. To ensure factories ran without interruption, housing complexes were built, steam powered horns (first alarm clocks) were introduced, and the modern workday was introduced out of necessity.
In those early days, the working environment were unsafe and working conditions merciless, and something would often happen that prevented the worker from carrying on. In that scenario, the factory worker would retire to his quarters or be retired. Hence, retirement was about being used up and leaving one’s post to someone else.
In this system, the employees worked many hours, sacrificing their health, mental wellbeing, and time with family. They did this all for a fraction of the cost of the ones who managed and owned the factory. While the entire society ultimately benefited from the work of the employees, only the business owners and those running the business became wealthy. Instead of paying the workers what they were actually worth, they would be paid what was just good enough to make the employees stay. While owners make the money, workers are there to make the owners money
This system still exists today. We go to school and earn a degree that qualifies us to enter the workforce. Just think of the word workforce. The employees are the force that do the work. For many people, the workforce is more like the work-forced. They feel forced to work jobs and take positions that they do not like just to make ends meet or for the sake of security. Can you relate to this?
After being forced to work for many years, they are forced to retire, whether they have saved up enough money to retire or not. If you think that is not the case, just ask a person who is over 60 years old how hard it is to find a job, though they may be mentally and physically capable. And who are the people who have built up wealth and living large? It is no other than the executives and business owners and founders. Note that executives are business owners because they run the business and own equity in the business.
In the U.S alone, the chief executive officer earns roughly 265 times the pay the average worker earns. Is this chief executive adding 265 times as much value as the average employee? It is debatable. Is he 265 times as smart as you are? I doubt it. Is he working 265 times harder than you are? Certainly not! He has the same 24 hours as you do, and he also has to sleep.
All the above is why it is unwise to try to build wealth following the societal norm of going to school, finding a job, and then working in a steady and secure job. It is unwise because the education system today is built to churn out employees and not employers! For too long, the education system has not focused on the critical areas necessary to be a successful business owner: Financial acumen, personal development, leadership, and relationship management.
My aim in saying this is not to rail against the system, although I know I sounded that way. It is to jar you away from your comfort zone and clue you into what you must do to build wealth.
The trail of wealth does not belong to the employee, it belongs to the business owner.
SuperChamp 