Globalization and the 'Commoditization' of Human Capital

Teach your children well, give them the best education available and hope that they find a good paying steady job with great benefits so they can live comfortably after retirement. This has long been the goal for past generations as the once robust middle class was built on this ideal and called it "The American Dream."

It was so seductive that people came from all over the globe to nourish the United States with different cultures. America became the nation of immigrants with the lure of becoming part of this middle class and many achieved their dreams. It was mutually beneficial. I was fortunate enough to have been part of it but sadly, I think my generation, may have been the last to drink from this well of corporate, middle class building capitalism.

This dream which, created generations of employees from Main St. that worked just hard enough to not get fired, while employers paid them just barely enough so that they wouldn't quit, offered the security of health care, a comfortable life for their children and a dignified retirement, is officially DEAD. And, its never coming back.

Globalization, along with the advancements of technology and developments in education, have changed the playing field and in a way similar to the way video killed the radio star.

Main St. is now owned by Wall Street, corporations own the US government and by extension, its people. I'm quite sure that the forefathers rolled in their graves as Citizens United became enacted and those 'monied' corporations that Thomas Jefferson feared so much, engineered the ownership and control of the US government. Citizens United became the scalpel to extricate a government intended to be 'by, for and of 'its people, away from them.

With the shifting landscape, its now more than ever important to encourage your children to embrace and harness their "inner entrepreneur." I think they're going to need it and if I am right, you will too!

Jobs, careers and one's quest for financial health to provide for one's self and family is going to look a lot different in the future. While the change may seem dramatic, I believe its only in its embryonic stage with much more significant changes coming. If there is not a recapitulation of the current form of capitalism within a democracy, trouble will loom for us all.

Even the ACA, which provided the confidence for new entrepreneurs to "give small business ownership" a try, which subsequently created millions of jobs, is now on life support. We are going to go back to a day where all these job creators will be abandoning their dreams and pursuits in order to take a safe, low paying job, just to get health insurance as a security blanket for their family.

Globalization and technology has commoditized labor, and as a result, the value of labor skills is diminishing, quickly. For many, the pursuit of business ownership will be a matter of survival. But, remember my motto; 'you can never own anything in life, that ultimately won't own you. Hence, never fall in love with your inventory.'

As a result of the degradation of wages and relative values for labor, the "wealth gap" is increasing at such a break neck pace, that I have now renamed it as the "livability gap."

Keeping all of this in mind, it is easy to see that the future of one's financial well being is YOU and to win, you will need to merge into the freelance economy. Many new careers will be hatched, not as an employee, but rather by those who will become their own entity (and CEO). You must be perhaps bold enough to put your skills directly into the marketplace to survive financially.

Innovation and disruption will still "rule the roost", but that's not for everyone. If necessity is truly the mother of invention, I believe, there will be plenty of necessity for people to reinvent themselves and pursue new careers in the freelance economy. Education is always a great idea, but even a degree at the post graduate level will not be enough to separate anyone from the pack in my vision of the new global work force.

But, not everyone is cut out to generate revenue, be their own CEO and be the custodian of their personal growth and development, financially.

I see the days ahead when technology and globalization will meet at the crossroads and will manifest into the "commoditization" of people and their labor skills. Mark my words, one day in the not so distant future, investors will buy stock, even call and put options in individuals, on an exchange, much like the way we now invest in companies, commodities and all liquid investments. Each person will have their own "prospectus' which will highlight skills, education, upbringing, place of residence, genealogy and the like, in order to determine their value. (I am currently writing a book on this idea of the commoditization of a planet and its people. It will seem fictional to many, but I see it coming. Actually, its already here, just unbeknownst to many and only in its beta version).

While business ownership sounds like a terrific option, there is a cautionary tale here because as seductive as it may seem, it isn't easy nor is for everyone. Most will fail and even those that succeed at it financially, don't get off quite so easily.

Life, family and relationship balances for the successful entrepreneur are difficult.

Ironically, it is far easier to fail as a business builder and owner than it is to succeed. Raising the bar, longer hours, more worries, is what comes with success. Failure brings lots of "nice try", dopey quotes and adages about "trying again".

After 35+ years in the global financial markets and 30 years as a Wall St. based business owner, if there is anything I've learned is this: the mission of getting a business launched (and generating revenue) must become a purpose even greater than oneself for both to be successful. Life altering sacrifices need to be made as there are no "magic beans" and there is simply no such thing as "business ownership utopia."  

I started my own global commodity trading business on Wall St. AFTER spending 5 years working (and learning) at a large firm. I used my own money to start my business, in the World Trade Center and an office in Hong Kong. I had to pay rent, buy a telephone system, lease a Telex and Telerate system, furnish the offices, hire employees, purchase stationary, business cards and sign for the doors. 20 years later, the business had 14 offices around the world, tallied a billion in trade and sales. It was a steady climb, and I did not do it by myself!

I have seen enough "deals" and have been pitched enough times to know that almost all the entrepreneurs think they're ready to be business owners and prepared for "prime time" and outside investors. Most fail simply because they are inadequately prepared emotionally, socially and rarely know and seldom understand the "business of business" or have any ability to be a storyteller.

Firstly, to the startup enthusiast, understand that the idea of using other people’s money to start up, without using any money of your own is just preposterous. A true entrepreneur doesn’t look to investors to fund their “sweat equity” which is akin to asking someone to fund your unemployment while you chase your pie in the sky dream.

 Concentrate on the good old fashioned, tried and true progression of; learning a business by working for someone else within the industry, save money to invest in yourself and by extension your business: then, methodically plan a business idea, talk to potential customers and co-founders, launch a business with your own money and if you need to borrow, go to friends and family, generate revenue by building your business or monetizing your idea , prove your proof of concept and then put together a growth and development plan. Hire outside help as advisory counselors. .

Then, and only then its time to find investors and other peoples money. The no money down chase of a pie in the sky idea is just a rookie mistake. Truth be told, many early stage investors and venture capitalists have grown intolerant to the new breed of "wannabe entrepreneur" that for the most part adopts the moniker "entrepreneur" to disguise their true status; "unemployed". And people wonder why venture capitalism is turning into "vulture capitalism".

"The mission of getting a business launched and successfully developed, must become a purpose even greater than one's self, in order for both, the business and the builder to be successful.

Entrepreneurship and business ownership is a journey and a lifestyle, not merely a destination. The road map to guide you on this journey lies in adopting a special mindset, one of Intellectual Humility."

The trek to attain intellectual humility is also the backdrop of the mission to achieve a high aptitude of both emotional and social intelligence and ABL (Always Be Learning).

I have been mentoring entrepreneurs, new business owners and aspiring leaders for quite sometime now and its become evident, that most need to be taught how to be better at attaining emotional intelligence, become better educated in the "business of business" and more articulate as storytellers.

And, always tune out the cynics that will be filled with opinions and insults. Opinions are not fact and merely a reflection of a personal agenda. Typically, opinions are nothing more than a confession of character. It’s a waste of time to try to change one's character, hence, you'll never be spending time productively trying to change one's opinion.

*As a matter of fact, when I would negotiate with anyone, I would ask their opinions on various topics, for the sole purpose of identifying the underlying character of whomever I was negotiating with at the time. AHH to have great mentors!

The aforementioned all play an important role in removing the "tunnel vision" and preparing the new business owner for success. Success is always harder than people think, and its certainly more difficult than failure. Understanding success will also help the entrepreneur succeed in the never ending and difficult chore of attaining balance and happiness within all aspects of life. Especially in that family and friends dynamic that I raised previously.

Achieving extraordinary success in anything, requires a long- term obedience to stay on the endless road of self-improvement. For the aspiring entrepreneur, this road is paved with the stones of Integrity, Purpose, Perseverance, Passion, Hopefulness, Commitment, Social and Emotional Intelligence. As I said earlier you will need to pursue "Intellectual Humility."

What is Intellectual Humility? It’s a mindset that improves emotional and social intelligence, both required traits to succeed as an entrepreneur and business leader. It's being intelligent enough to understand the importance of knowing what you don't know is just as important as knowing what you do know; being understated in a way that your reach never extends beyond your grasp; possessing a mind so open and curious, that you genuinely strive to learn something every day, from every one that you encounter; being passionately interested in others, knowing that doing so makes you more interesting to everyone.

My 15 Commandments of Pursuing Success via Intellectual Humility

• Know that underachievers will always find an excuse; Winners will always make time.
• Learn when to give in, but don’t EVER give up, especially on something you believe in, but NEVER fall in love with your own inventory just because its your inventory.
• Know that lapses in judgment are truly human, but there is no such thing as a lapse of integrity.
• Remember intelligent people fight fire with water, never with fire. Emotional intelligence is truly an art.
• Be as passionate about understanding others as your desire to be understood by others.
• Know to be INTERESTING, you must first be INTERESTED. Be a good listener and then an articulate and genuinely passionate storyteller. 
• Remember that time kills all deals. Be as purposeful and expeditious about finishing a mission as you were about starting one.
• Always possess a child's curiosity to go along with awe-inspiring humbleness. Genuine imperfection is ALWAYS more attractive than disingenuous perfection. BE REAL
• Know that knowing what you don’t know is often more important than what you do know. Learn something EVERYDAY, from EVERYONE you meet. 
• Have high expectations of others, but even higher ones of yourself. Be a great teammate.
• Compromise to cooperate, but never at the expense of your own integrity. Always try to make the right decision and if you don't, don't try to make the decision right.
• Be understated with a grasp that extends well beyond your reach. The world already has far too many overstated people with a reach that extends beyond their grasp.
• Always be eternally optimistic and genuinely excited about the success of others.
• Demand quality from partners by always choosing “character” over “characters”. Become the example of the integrity you demand in others.
• Express genuine kindness, benevolence, compassion and gratitude and let it be seen as your strength, not your weakness. Always be seen as a giver, not a taker.

*The above 15 daily actions that spur extreme success in business, life and leadership roles is from my book “THE ENTREPRENEURS EDGE - Tapping Into Your Inner Entrepreneur” - https://www.amazon.com/gp/product/1478794003

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"May you always have enough of the things you need for yourself and an abundance of the things you'd like to share with others. In this way, your hands will always be extended in friendship and never in want. And, should you find yourself more fortunate than others, build a longer table, not a taller fence. The grass may not always be greener on the other side, but will always be greener where you water it!"

James Vena

About Me - In early 2018, I announced my plans to take a step back from my businesses and quasi retire to write and teach. Here is my announcement https://www.dhirubhai.net/pulse/personal-career-lifestyle-update-2019-james-vena/