THE RULES OF MONEY CHANGED IN 1971
The rules of money changed in 1971. On August 15, 1971, President Richard Nixon announced that the US dollar would no longer be backed by gold. The US dollar became a currency, and the rules of money changed! A major effect of the US dollar becoming a currency is higher prices of goods and services. Since 1971, the cost of goods and services has gone through the roof. By not having a financial education and realizing that the rules had changed, workers and savers became losers.
SCHOOLS DON’T TEACH FINANCIAL EDUCATION!
Since schools do not teach true financial education, the majority of people are taught to get a job. Schools train students to become employees, working at someone else’s company. This presents several problems.
1. LOW WAGES, HIGH COST OF LIVING
The first problem is the pay. Data from the Economic Policy Institute show that since 1979, workers’ wages have remained essentially flat, even while their productivity has consistently increased over time. Greater production means greater profits for the businesses. So, as corporations have amassed greater wealth over this timeframe, their employees have grown poorer due to their inability to keep up with the increase in the cost of goods and services. In effect, workers have grown poorer over time because their wages have not kept up with the increasing cost of living.
Economic Policy Institute: http://www.epi.org/publication/raising-americas-pay/
2. HIGHER TAXES
The second problem is taxes. Employees pay some of the highest tax rates. Not only are their wages low, but a chunk of their pay also gets taken out and given to the government in the form of taxes. Being an employee prevents the ability to take advantage of the tax breaks and incentives afforded to businesses. Businesses are rewarded for creating jobs and stimulating the economy. Employees are penalized for their hard work via higher taxes.
3. INCREASED COMPETITION
The third problem is globalization. As globalization steadily increases and more employers seek cheaper labor sources from abroad, the competition for quality, high-paying jobs will also increase. This is bad for employees because the advantage lies with business owners since there is always someone willing to do your job for cheaper.
NEED FOR FINANCIAL EDUCATION
As you can see, the rules of money have changed and the need for financial education is more important than ever! Working hard and “earning a living” are dangerous concepts that don’t work like they used to. Instead of working hard to earn money, you have to learn to play the game of money like the rich – and have your money work hard for you! Because of their financial education, the rich make money through assets, things such as businesses, real estate, stocks, and precious metals. To change your life you have to smarten up. Working harder isn’t the answer. Working smarter is! Begin your financial education today!