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United States
Unemployment Crisis
- Part IV

Go back to United States Financial Crisis - Sub-zones

Unemployment Crisis - How can a market be strong if the merchants are not working? Can US unemployment crisis be useful for turning Crisis to Profit during the GFC?

5 – Entrepreneurship as Key? -

30) Dr. Michael J. Duckett, author of Breaking the Money Barriers and founder of Upgrading Life, Inc., writes about unemployment and entrepreneurship in Riquezas Infinitas with co-author Gonzalo Marquez.

It is written, “For many people, a job is simply a temporary inconvenience on their way to wealth.”

31) Robert Kiyosaki, author of Rich Dad's Guide to Investing and inventor of the board-game that develops financial success, Cash flow, says on unemployment and entrepreneurship:

“The number of people living officially below the poverty line is rising rapidly...

72 percent of all adult Americans would rather work for themselves than for a job, and 67 percent think about quitting their jobs “regularly” or “constantly”...

Now, the problem with getting a job is, who do you think pays the most taxes?...[and further] The problem with having a job is that it gets in the way of getting rich...

Inside of every problem lies an opportunity...[and] entrepreneurs flourish in down times.”

32) Real estate investor James Smith might add that he wants the unemployed to never accept another job so they can reclaim the opportunity for financial success and cash flow.

33) Sir Evelyn de Rothschild, prominent member of the Rothschild banking dynasty, shares a thought on unemployment and the GFC during and interview on CNBC's Maria Bartiromo, who has seen some of those who many would consider to be successful - taste unemployment.

Sir Evelyn comments on the global financial crisis as it was developing towards the end of 2008, and also the role of small business in transmuting the apparent downtrends in the market and uptrends in unemployment:

“...I think it's very difficult to say [how the entire financial scene is appearing] around the world, [because] each country has its own problems...

There are those countries who are very hit by inflation and have had to control it.

Those countries, which have problems with, the workforce and so you've got to look at each one.

In the UK, where unfortunately at the moment, we're getting more people going out of work – unemployment is increasing...

And it's going to...be very difficult to convince people to reinvest, because money is going to be short so, small businesses - which is the key – let's face it, the world is made up of small to medium size businesses.

I believe in this country, there's a huge number of small to medium size businesses that make up the backbone, of the United States. I mean, you're talking about the auto industry – it's the suppliers to the auto industry that in some ways are more important than the big manufacturers.”

34) Felix Dennis, who was once a member of the billionaire club, participated in an interview with Forbes magazine in March 2011.

During the interview, Dennis – a Brit, mentions the downtrend of the US empire with reference to his experience during the downfall of the British empire and the role of entrepreneurs is shaping US and global finance.

Interviewer Jeff Bercovici headlines the piece with these words:

“The Mogul's Maxims.

Onetime billionaire Felix Dennis made a fortune launching magazines like Maxim and The Week. His advice on empire building?

Read his book, start a business and stay away from Wall Street.”

Dennis has these select words to say on business-building during the interview:

“This is a very difficult subject because the vast majority of people should no try this. You're just going to wreck your life. The percentage of people who actually get rich is very small, and the collateral damage to your life is very high (, says Dennis regarding entrepreneurship).

[Anyone can succeed] As long as they're prepared to fail again and again first. Anyone of reasonable intelligence can make substantial sums of money if they're prepared to make the sacrifices.

Anyone.”

When asked if starting a business is still the best way to get rich and if hedge fund managers and bankers have disproved that entrepreneurship is the way to wealth, Dennis responds:

“Yes, there are certain professions, the financial sector being one of them, where you are massively overpaid. But those days – I'm not saying they've ended...are coming to an end.

Anybody who goes into college now and thinks:

'I'm going to join the equivalent of what Bear Sterns was, and I'm going to get rich just by loaning other people's money and taking huge plunges, and if I'm wrong I don't lose anything' – well, that might've worked in the 1990s, but it's not going to work now, brother.

Those bankers you're talking about, they're not part of a virtuous circle....

Whatever an entrepreneur is...They have meaning.

And without wishing to sound so pompous, they are part of what made America great.”

35) Again, Forbes expounds on entrepreneurship as the way to wealth – Rich Karlgaard writes in “How to Become a Billionaire: Zero by Zero,”:

Fact is, it's darn hard to land on the FORBES billionaires list.

Starting your own company is still the best path to becoming a billionaire, but the hill steepens with each zero of net worth.

Let's start with the first zero.

With inflation, an eight-figure net worth - $10 million to $99 million – is what most of think of when the word “millionaire” comes to mind.

Eight-figures is...the province...of...businesspeople who own tidy franchises that spit out nice cashflows...Partners of big-city law firms will blast into eight-figure wealth in their 40s. Partners at top investment banks can manage the trick in their 30s...

In the prerecession days commercial real estate brokerage was the scrappy person's route to eight-figure wealth. CEOs of publicly traded companies will get to eight figures easily.

Let's ratchet it up again, to night figures - $100 million to $999 million – a zero short of billionaire status.

How does one get there?

The fastest way is to start a company beloved by the capital markets and flip your creation before the markets change their mind...

Cisco, Oracle and Google have given many an entrepreneur nine-figure wealth.

Now the summit: How does one become a billionaire?

Outside of Wall Street the best way is to start a company that rides the Moore's Law curve and scales globally.”

(Source: Wgsimon) – Moore's Law Curve – 1971-2008 -

“In my previous column Intel's CEO, Paul Otellin, said that Moore's Law was assured for another five years.

What does this mean for business?

One dollar of today's computing power will cost 3 cents five years from now. Whoa!

What new applications will spring from that? What things will be displaced when computing is that cheap?

Figure this out and you won't have to worry about liquidity exits.

The money will come to you.

Figure this one out and you'll be on a future FORBES billionaires list.”

36) Karlgaard ends his column on becoming a billionaire by referring the reader to Eat People by Andy Kessler, for foresight on the role technology in global finance and touches on factors that can influence unemployment.

The editorial review from Publishers Weekly for Amazon.com opens by stating that Andy Kessler interviewed tech-billionaires such as Dell and Zuckerberg to find common attributes and combines these findings with his own experience in hedge fund management, investment-banking, and venture capitalism.

The product review begins and ends with these words:

“The era of easy money and easy jobs is officially over.

Today, we're all entrepreneurs, and the tides of change threaten to capsize anyone who plays it safe...

Whether you're at a big corporation or running a small business, you're now an entrepreneur.

Will you see change coming and grab on to opportunity or miss the boat?”

6 - Moving Forward -

37) In a word, it seems United States unemployment crisis has been spreading - to nearly all income levels – as illustrated by a bit of data from the US Congressional Budget Office and the daily experience of US earners.

Such crisis may possibly afford ripe opportunity to reap succulent profits – United States unemployment crisis and global financial Crisis to personal, powerful Profit.

On behalf of The Global FC Zone,

Crisis to Profit.

Roth

1) Barrons, Roth E. Born to Die: Rising from the Explosion of the Global Financial Time Bomb.

2) Bercovici, Jeff. “The Mogul's Maxims.”

3) Karlgaard, Rich. “How to Become a Billionaire: Zero by Zero.”

4) http://wikipedia.org/

5) Kiyosaki, Robert. “Business of the 21st Century.”

6) Evelyn De Rothschild Warning the Masses – Too Late (Holding Bonds, Oil, Gold).” http://www.youtube.com/watch?v=7Fw1RMKWypo

7) Duckett, Dr. Michael J.; Marquez, Gonzalo. Riquezas Infinitas.

8) FCIC. Financial Crisis Inquiry Report.

9) Clason, George. The Richest Man in Babylon.