Why you must make your child rich Chapter 2
Chapter 2 - What's going on in all bosses'and soon to be bosses' heads
Maybe this is a really unneccessary chapter because it's so obvious. But I know there are people who are too blinded by what certain people want them to think, that they totally don't see the obvious.
All bosses wants to maximize profits and minimize costs.
In today's global economy, it's even more easy for the boss to do that when labour are much volatile than before. Those with the money have the bargaining power when there are so many workers/employees around.
For those countries where they protect their own citizens by restricting foreigners from taking up jobs in the the country, it will only force the companies to move the jobs eslewhere. eg. setting up factories in countries where labour costs is lower, setting up management offices in cheaper countries. eg. Many headquaters of many big MNCs were once in singapore, but now moved on to shanghai because the graduates there are cheaper to hire.
Eventually, when many jobs are being relocated, the remaining jobs in the protected country will be shared among even more people who got retrenched, sacked from the jobs that went eslewhere. And when supply of labour is high, sooner or later you have to lower your expectation for salary.
Bosses are the ones happy in the end...no matter how, they achieve their aims of minimizing costs.
Another way how bosses minimize costs is by economics of scale, which can only be ACHIEVED WHEN YOU ARE RICH. only by being rich, can you order your raw materials in bulk, design machinese that mass produce and do everything in large scale.
The same applies for MNCs, the bosses are those from the top management (in rare cases the middle management) and the stockholders. Top management usually only takes up 20% of the company's headcount but they take home 80% of the company's salary expenses (This is called the 80-20 rule).
And guess what, to be a stockholder that really earn enough to offset the inflation and still earn from the stocks you hold...you need to be ...RICH enough in the first place to buy enough stocks.
I got a friend who once told me, he just need to earn his "first pot of gold" before he jumps into the higher order of being in the rat race...that is to be a boss that exploit on the employess and not being the one being exploited.
I agree, but then, everyday, there are people who managed to work their asses off to rise to be a successful boss, and the later you got your "first pot of gold", the longer you delay to be a successful boss, and the harder it will be for you to shake off being a employee...the one being exploited.
As time drags longer, the money that is enough to be the "first pot of gold" to move you from employee to employer will be getting higher and higher.
Why? You gotta read the next chapter then...The rich will get richer, and the poor will get poorer.
--end of chapter 2--
Maybe this is a really unneccessary chapter because it's so obvious. But I know there are people who are too blinded by what certain people want them to think, that they totally don't see the obvious.
All bosses wants to maximize profits and minimize costs.
In today's global economy, it's even more easy for the boss to do that when labour are much volatile than before. Those with the money have the bargaining power when there are so many workers/employees around.
For those countries where they protect their own citizens by restricting foreigners from taking up jobs in the the country, it will only force the companies to move the jobs eslewhere. eg. setting up factories in countries where labour costs is lower, setting up management offices in cheaper countries. eg. Many headquaters of many big MNCs were once in singapore, but now moved on to shanghai because the graduates there are cheaper to hire.
Eventually, when many jobs are being relocated, the remaining jobs in the protected country will be shared among even more people who got retrenched, sacked from the jobs that went eslewhere. And when supply of labour is high, sooner or later you have to lower your expectation for salary.
Bosses are the ones happy in the end...no matter how, they achieve their aims of minimizing costs.
Another way how bosses minimize costs is by economics of scale, which can only be ACHIEVED WHEN YOU ARE RICH. only by being rich, can you order your raw materials in bulk, design machinese that mass produce and do everything in large scale.
The same applies for MNCs, the bosses are those from the top management (in rare cases the middle management) and the stockholders. Top management usually only takes up 20% of the company's headcount but they take home 80% of the company's salary expenses (This is called the 80-20 rule).
And guess what, to be a stockholder that really earn enough to offset the inflation and still earn from the stocks you hold...you need to be ...RICH enough in the first place to buy enough stocks.
I got a friend who once told me, he just need to earn his "first pot of gold" before he jumps into the higher order of being in the rat race...that is to be a boss that exploit on the employess and not being the one being exploited.
I agree, but then, everyday, there are people who managed to work their asses off to rise to be a successful boss, and the later you got your "first pot of gold", the longer you delay to be a successful boss, and the harder it will be for you to shake off being a employee...the one being exploited.
As time drags longer, the money that is enough to be the "first pot of gold" to move you from employee to employer will be getting higher and higher.
Why? You gotta read the next chapter then...The rich will get richer, and the poor will get poorer.
--end of chapter 2--
posted by rolento @ 8:41 PM
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