In fact, for those hard workers without a financial education, things are only going to get worse – much worse. That’s why having a financial education is essential in today’s tough economic times.
THE WORK HARD AT A JOB MYTH
A major reason so many people are struggling today is because they are holding on tightly to old ideas and values – values that used to work in their grandparents’ generation. Going to school, getting a good education, and working hard at a job used to be sound advice. Today, however, this advice is not only bad, it can also be dangerous!
In the past, in our grandparents’ generation, working hard at a job paid off. After World War II, workers’ wages rose nearly in parallel with their productivity. The more workers produced (aka worked hard), the higher their wages climbed. This trend in worker profit-sharing occurred up until around 1979. After which, however, workers’ pay remained relatively flat in nominal terms, even as worker productivity soared.
If the prices of goods and services remained the same from 1980 until now, the lack of higher pay wouldn’t be as big of a deal. But here is where the problem lies. Since 1971, the costs of goods and services have skyrocketed, while wages have barely budged. Simply put, today’s wages are too low for the present high costs of living.
THE RULES OF MONEY HAVE CHANGED
Since schools don’t teach true financial education, not many people know that the US dollar was taken off of the gold standard in 1971 by President Richard Nixon. That also means that most people are completely unaware that we’ve been operating under a new monetary system since that time! When the dollar was taken off the gold standard in 1971, it became a currency – and open to inflation. Since 1971, the costs of goods and services have exploded due to inflation.
Workers’ wages have not kept pace with rising costs over the past few decades. Thus, many people have grown poorer as they have been able to afford less and less from low wages. And because they lack a financial education, they have no clue why things are so tough.
FINANCIAL EDUCATION IS THE KEY!
Over the same time period, where the poor and middle class grew poorer, the rich grew even richer. The reason is because the rich don’t work hard for money. Instead, the rich know how to have their money work hard for them – which is the key in this new system! In this age, it is a must that you learn to do the same! The rich employ the principles of financial education to grow their wealth. Working hard simply does not work anymore. Today, it’s about working smarter through financial education. It’s as simple as that.