The Lessons School Forgot

Chapter 8The future of money

Money tends to follow certain laws of attraction. It is especially attracted to things that are scarce but much in demand. So in order to attract more of it, we must understand how technology is changing the scarcity equation. The first part of this equation is how easy something is to do. The easier a skill is to learn, the less scarce it will be, because more people will come forward and offer to do it. To determine where more money will be earned, we need to look at what things technology is making scarce and what things technology is making abundant.

Our financial future depends on putting ourselves on the side of scarcity. While a lot of industries won't admit it, once technology makes some roles abundant, the business model of that industry (including employment, earning and investment prospects) is never the same again. Quite often the industry or company will refuse to admit the truth that their glory days are behind them. It doesn't mean you have to. If you see the ship is sinking for a certain industry, or a company you work for (and don't own), then you should jump ship as soon as possible. Companies deserve as much loyalty as they'll give you in tough times, and that's exactly none. Companies tell you that their most important asset is their people, and this is true. What they don't tell you is that their people are interchangeable, disposable and will come and go over time.

The company isn't real

Never forget that a company isn't real. ...