The eye catcher ….
Social media in particular has been pushing entrepreneurship to blacks as another path to wealth building. I need to ponder this idea some more particularly from the legal and public policy perspective, but right now I wonder if entrepreneurship is nothing but a policy sham, designed to keep the eyes of Americans in general and black Americans in particular off of what truly drives wealth building in any economy: capital, especially its monopolization.
True wealth building factors ….
Since I am not wealthy, the following wealth factors are from what I have observed versus actually experienced. They are:
- The ownership of the factors of production.
- Ownership or significant control of a unique production process.
- Investment in a number of unique production processes that provide significant returns.
- The sale of unique, exceptional expertise.
Entrepreneurship: Wage slavery on steroids …
Entrepreneurs are typically involved in the resale of the output of the production process. They rarely own the intellectual property behind the production process or the product itself. They are typically agents competing against other agents trying to sell the same or like products. Competition erodes the opportunities they have to earn high profit. They are stuck in the volume game. Any wealth the attain will come from their ability to save some portion of their business margins. Most are wage slaves with the additional responsibility of paying back a business loan with the hopes of capturing the value of the firms during their sale.
Parting, starting thoughts….
Should policy provide entrepreneurs with more opportunity to capture wealth and if so, how? Are we too fixated with the “actin aspect” of wealth that we are paying little attention to the thought exercise that is involved in creating the true value behind wealth and its transmission?
Again, just some thoughts on entrepreneurship that I promise to share later.