The idea of being trillions of dollars in debt doesn't seem to scare our leaders in Washington. Many households have debts that are looming and scary but tiny in comparison. Where did all that money go? Someone spent it. I don't think that our government really has a true budget like a good business or well run household has. If our government was run like a business and audited like one, either the budget would be balanced or there would be a lot of people in prison for fraud and embezzlement. Yet, we can't blame anyone but ourselves, it started with the individual voter and non-voter. Those who don't vote must be included because of their apathy, the system has become the system because we all let it happen. Why don't we ask tough questions and have our representatives show us the evidence of how they are spending our hard earned money.
The stock market is defying logic, but then again, avarice is not known for being logical. Would you pay 40 to 50 times a company's earnings if you were to invest your life savings in say a computer vender down the street. Let's say he claims that his sales went from $10,000 a month to $20,000 a month year over year. He wants to sell you his business so knowing that he made double what he did last year, and your projection of future sales and earnings is for the trend to continue at the same pace, based on analysts estimates the business will make $40,000 a month next year. You quickly take out your life savings and plunk down your $1 million dollars to purchase the business. He walks away a millionaire and you get a business that you know, based on your logic, will be worth $2 million next year and all you have to do is find someone just like you to take it off your hands for a nice gain of $1 million. Easy? Yet, most people wouldn't just buy that business without asking more questions, getting a complete set of audited accounting records, examining future demand and R&D for new products, investigating who their competitors are out there and many other things before they bet their life savings. Still, this happens everyday in the stock market. People put their life savings into the hands of Wall Street money managers and hope for the best.
The way out of this financial roller coaster ride is to get back to business fundamentals. It is simply this, produce something of value, sell it at a profit, save some, reinvest some, and go back to step one. Too many people rely on the government to be the solution to the economy and they don't rely on their own abilities.
I read this quote in the book, "How Privatized Banking Really Works", by L. Carlos Lara & Robert P. Murphy.
"The most efficient organization in the world is not any group of people but a single person. A normal person can conceive a plan, figure out how to carry it out, and communicate the orders to do the task to his faculties instantly, with minimum likelihood they will be misinterpreted... Moreover, an individual who owns his own material, has put up the investment for an undertaking and stands to gain whatever profits arise from the enterprise, must have the greatest incentive to do the job well."
--Clarence B. Carson
Our goal at Bizincubators is to inspire and educate aspiring entrepreneurs, we believe that the solution is right in our own backyards, it is people like you who have a personal dream to become a successful entrepreneur.
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