Why Your Kids Hate Capitalism

Editor's note: Continuing with our series of insights from The Oxford Club Chief Investment Strategist Alex Green, today's essay discusses the benefits of our system of capitalism – and why many young folks today don't understand... The stock market provides two essential functions... It allows companies to raise money so that they can hire people, […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] Editor's note: Continuing with []our series of insights from The Oxford Club Chief Investment Strategist Alex Green, today's essay discusses the benefits of our system of capitalism – and why many young folks today don't understand... --------------------------------------------------------------- Why Your Kids Hate Capitalism By Alex Green --------------------------------------------------------------- [Prediction for October 19 in Orlando, Florida]( If it comes to pass, it might be a once-in-20-year investment opportunity you do not want to miss... and it could have a massive impact on your wealth. [Learn more](. --------------------------------------------------------------- The stock market provides two essential functions... It allows companies to raise money so that they can hire people, grow, and offer us the products and services we need. And it provides opportunities for investors to share in their success. Although equity investors rarely stop to think about it, the stock market is the essence of capitalism, generally defined as the private ownership of the means of production. With very little money and a quick phone call – or a click of the mouse – you can own a fractional interest in any of thousands of the world's most profitable businesses. The system is fair, too... You will pay (and receive) no more or less for your shares than the wealthiest investors do. If you own Tesla (TSLA), for instance, your investment returns in the years ahead will be identical to those of the world's richest man, Elon Musk. (Sure, he may own a few more shares than you do. But your percentage returns will be the same.) There are no roadblocks for anyone willing to work and save. Thanks to technology and competition, commissions, spreads, management fees, and investment minimums are near zero. And, in many cases, actually zero. Given the many benefits of capitalism, it's dispiriting to see polls showing that a majority of Americans between the ages of 18 and 29 do not support the free market system that underpins our country... A full one-third said they preferred socialism. The question, of course, is "Why?" I began polling friends and colleagues to get their views. Some insisted that too many young people have not been raised to be responsible, productive adults. Some were on the dole from the day they were born. Helicopter parents did too many things for them that they should have done for themselves. And they grew up with a sincere belief not in a meritocracy but that "everyone gets a trophy." Others said their kids don't understand that capitalism is a profit and loss system. When companies fail – as many do eventually – it causes economic disruption for employees. (Not to mention investors.) It's unsettling to find yourself suddenly out of a job. We all prefer economic security to anxiety and uncertainty. Unfortunately, that's not how modern economies work. In our globally competitive world, most workers today will not just hold multiple positions over a lifetime but work in multiple industries. Sometimes job skills don't transfer easily, however. That can be stressful. Other friends insisted that anti-capitalist attitudes are all their kids have ever been taught. They graduated from high school without the most basic understanding of compound interest, adjustable-rate mortgages, 401(k)s, or why we even have a stock market. Then they enrolled in an institute of higher learning where their professors explained that we live in an unfortunate economic system that allows "a fortunate few" to benefit at the expense of the many. (Never mind that the median household income has tripled in inflation-adjusted terms during my lifetime or that U.S. household wealth just hit a record $154.3 trillion.) It's not just anti-business ideology that hurts young people... The Wall Street Journal reviewed results at some of the most prestigious universities in the country and found that college kids are graduating without critical thinking skills. At more than half of schools, a third of seniors were unable to interpret data in a table, assess the quality of evidence in a document or make a cohesive argument. As a result, many companies today are struggling to find qualified workers. It's a shock to kids who spent a small fortune getting a degree in Bitterness Studies to find that what prospective employers really want is analytical reasoning and problem-solving skills. They don't have them. What they do have is tens of thousands of dollars in student loans. That's a tough way to start off in life... --------------------------------------------------------------- Recommended Link: [REVEALED: The most dangerous man in America...]( A powerful man unbeknownst to most Americans is about to change the course of history... It's not Joe Biden, Donald Trump, or any other politician. In fact, this person has never run for or held elected office. Most people wouldn't know him if they bumped into him on the street. But on December 13 at 2 p.m. Eastern time, this man is set to make a statement. A declaration that could send shockwaves through our financial system... and instantly change the trajectory of more than $5 trillion in American money. While most people will be blindsided by this statement... you have a unique opportunity. A chance to prepare for this event... to be on the right side of history... and potentially coming out wealthier than you ever thought possible. To find out what you need to do to prepare, [click here to get the full story](. --------------------------------------------------------------- Capitalism, however, is not the culprit. Our free market system creates jobs, lifts people out of poverty, and meets virtually all our wants and needs. It promises that you can have anything you want if you just provide enough other people with what they want. That's why every time you enter a place of business, you hear the same five words. "How may I help you?" Unlike government, business is about freedom and individual choice, not coercion. Every transaction is voluntary. Notice that you always hear two "thank yous" at the checkout counter. You say thanks because you value the merchandise more than the money. The store owner says thanks because she values the money more than the merchandise. If you don't like a particular company or its policies, you don't have to work for them, buy from them, sell to them, or own their shares. Businesses have a powerful incentive to do the right thing. Those focused solely on short-term profits don't last long. If you cut corners on quality, your customers will leave. If you bargain too hard with suppliers, they won't trade with you. If you undervalue your employees, they will take their talents elsewhere. It is in the best interests of business owners to make sure all stakeholders – employees, suppliers, customers, and communities – are satisfied. Now, here's a news flash: Businesses are run by fallible human beings. Sometimes they make mistakes, breach contracts, use poor judgment, harm individuals or damage the environment. When they do, the transgressors should be punished. But that doesn't make capitalism wrong any more than democracy is wrong when a politician gets outed for his or her misdeeds. The U.S. has the highest percentage of millionaires of any country on Earth. And the vast majority are self-made. They accumulated their wealth through education, hard work and risk-taking. However, most of us don't have the time, the investment capital or the experience necessary to found and run a successful company. Yet we can own a piece of one through the stock market. And owning a piece of a firm is a whole lot easier than managing one. You don't have to sign personal guarantees, hire or fire employees, grapple with an avalanche of federal mandates and regulations, pay lawyers and accountants, or even show up for work. How great is that? In short, capitalism works... It drives innovation and increases productivity. It raises our standard of living and enhances our quality of life. It reduces poverty and creates widespread prosperity. If your kids or grandkids don't understand this, do them a favor... Tell them about it. Regards, Alex Green Editor's note: Earlier this week, Alex and Empire Financial Research founder Whitney Tilson went on camera to explain exactly where to move your money immediately... the rise of a little-known technology that could change the way you shop, travel, communicate, and more... and why this year's "great divide" in the markets is giving you the chance to buy certain stocks, on the ground floor, for 1,000% upside potential that most people won't hear about until it's too late. There's still time to watch the broadcast to get the full story – [you can do so right here](. --------------------------------------------------------------- If someone forwarded you this e-mail and you would like to be added to the Empire Financial Daily e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2023 Empire Financial Research. All rights reserved. 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