The Next Economic Paradigm

Tag: pyramid

Where Teachers Hold an Equity Position

Teachers are “threatened” with layoffs. In some cases, the profession is openly mocked. Meanwhile, corporations are staring blankly at the knowledge gap in their industries.  The older generation is retiring, moving on, and taking their knowledge with them.  Teacher’s unions are busted and disappearing. Apprenticeships are a thing of the past.  Everyone is asking “where are the jobs – there is plenty of work to do”

Education is obviously a financial instrument.  Think about that for a minute – it is an investment like any other investment. Wall Street has an arbitrage instrument for every market anomaly – why not education?

What would happen if teachers were given an equity position in their students?  Isn’t this what families do to prepare their kids to take over the family business?  Isn’t this what happens in corporations where executives pick proteges?  Isn’t this what happens in politics where knowledge is traded among a closed group?

A school like Harvard University or MIT certainly hold and equity position in their students. What if every community viewed every child as an asset instead of a liability?

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Goldman Sachs: Bernie Madoff on Steroids

(Editor’s note: in all fairness, the GS initiative does represent a fundamental shift away from the Friedman doctrine of amoral capitalism.)

Money does not represent gold, solver, or oil.  Money represents human productivity – yours and mine.  Goldman Sachs is about to award the greatest ANNUAL payout for its employees – over 700,000 dollars EACH.

The words “money” and “productivity” should be interchangeable. So, what exactly did Goldman Sachs produce in order to amass such astonishing amounts of “money?”  Where is the corresponding astonishing productivity?

The line of fire is quite obvious; the productivity is really “future” productivity in the form of debt – yours and mine.

WSJ: Some of the largest shareholders in Goldman Sachs Group Inc. have urged the Wall Street firm to reduce the size of its bonus pool, arguing that it should pass along more of its blockbuster earnings to investors, according to people familiar with the situation.

Uhhmmm…15% of the shares are owned by the Goldman employees – sounds like the 2nd tier of the pyramid are getting anxious.  Like a street gang, they battle for a piece of the turf.  Perhaps Goldman should do something for the 3rd tier too.

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