How to Survive The Brutal New Economy

My eyes glazed over! I was hypnotized by the clarity of the image before me! It’s 2008 and this is the first time I’ve ever seen a 4k image. It’s difficult to put into words, but right then I saw the future. I realized this trend involved a greater trend. Digital video was slashing film production costs. But, more importantly anyone could create high quality content. Now a determined child could create content that rivaled many Hollywood producers. And the revolution didn’t stop there. Suddenly technology began to transform every industry across the world. But, inside the revolution held the key to HOW TO SURVIVE THE NEW ECONOMY. I had a startling realization that the future belonged to the entrepreneur.

What The Film Industry Can Teach YOU About The NEW ECONOMY

Kodak reigned as the photography king! By Forbes estimate, Kodak dominated the photographic film industry with an unparalleled 80% U.S market share and 50% globally. However, when Steven J. Sasson, a Kodak Engineer, invented the first digital camera, Kodak suppressed his discovery. This was a near-fatal decision for Kodak. Digital technology tanked the demand for film and ultimately left Kodak bankrupt in 2012. Fortunately, from the ashes, they rebounded and embraced the wave of change.

What Kodak didn’t see is what the world is failing to see right now. Technologies rise has unearthed a new worker. Skills are rapidly becoming obsolete, and job security depends on the value you create. In Cal Newport’s book “Deep Work” he argues two types of workers will thrive in the new economy.

• People with the ability to quickly master hard things
• People with the ability to produce at an elite level, in terms of both quality and speed.

But before we dive deeper, we must understand how the old economy blinded us to this simple fact.

How The Old Economy Shaped Our Minds

I binge watch the entire series “Mad Men”. I was certain I would hate it, but when I realized it was about advertising I was hooked. This show exposed how Madison Avenue’s ad agencies shaped our view of the world. The “Phenobarbital Age” created a new American Dream. In Seth Godin’s Linchpin, he describes this as “The Golden Age of Advertising”! This is when huge ad agencies dominated because they could afford to buy expensive billboards and television commercials. It was nearly impossible for the common man to reach the masses. As a result, most people became factory workers or entered low-wage jobs. College, at the time, created the bulk of high-paying jobs. This caused parents to tell their children to get an education and land a good job. From there, they could scale the corporate ladder and retire in the Cayman Islands, or some other remote beach. And this thinking still exists today. Our parents simply repeat it because that’s what they were told. However, like Kodak it’s missing the big picture.

My parents told me that college was the only path to success. They believed these institutions were just as secure as when they were young. This becomes intensified in minority communities because access to these institutions was limited. College education and a steady job became the poster child of security. It wasn’t about the value you create, it became about how many skills and accolades you could acquire. However, everyone was blindsided during my generation because they never considered technologies impact.

The Washington Post published an article “The brave new world of robots and lost jobs”. In this article, the author explains how technology is removing most work activities.

The “automation bomb” could destroy 45 percent of the work activities currently performed in the United States, representing about $2 trillion in annual wages

The world your parents and my parents lived in is dead! Now, abandoned factories line the country like tombs from an ancient civilization. Technological advancements have consumed thousands of jobs. And, if you see the possibilities of IBM’s Watson it’s enough to make you believe Skynet has become self-aware. Your parents’ economy is dead, and it’s not coming back. This may seem horrible, but it’s actually a great opportunity. If you understand what I’m about to tell you, then you will thrive in the new economy.

Understanding The New Economy

So, who thrives in the new economy! Machines easily replace skill workers, so we must develop skills that are difficult for technology to duplicate. This means the new economy favors people who create massive value in multiple disciplines, and organize data in new and interesting ways. For example, realizing technological advancement would surge job loss. This is what we call a “Knowledge Worker”. Knowledge workers are invaluable assets and they provide tremendous value. Best of all, unless machines become self-aware anytime soon they are nearly impossible to replace.

This brings me to e-commerce. Online businesses have sky-rocketed in the last 5 years. E-commerce has doubled in size according to Statista. (See the Chart above) This rise of e-commerce means that anybody who creates value can get paid. Large corporations used to be the only ones who created global value. Now, if you make blankets in Alaska, you could sell it online to someone in Australia. This global reach is unprecedented and has caused many large organizations to stumble. As a result, we see much more job loss. While jobs are becoming less secure, the ability to make money is becoming easier because of e-commerce.

This e-commerce is not the only tool in the new economy. User-generated content has led to the ability to monetize virtually anything. YouTube stars have created fortunes video blogging about video games, make-up, celebrity gossip and conspiracy theories. Experts with skills have made fortunes selling their knowledge as digital products. This includes topics like business, fitness, and even how to pick up girls. In the new economy, there’s only one person guaranteed security. This person owns the future and is in control of their own destiny. Do you want to know who it is?

The Rise Of The Entrepreneur (How To Survive the New Economy)

I can’t scroll down my timeline without seeing a motivational quote or someone talking about the hustle. Every YouTube video is stuffed with ads promising the good life. But, before you judge their motives let’s look at the bigger picture. The reason for this is simple, people are growing disgusted by their jobs. According to the Conference Board, the New York-based nonprofit research group, 52.3% of American’s are unhappy with their jobs. Job security is low and people are forced to endure whatever job will hire them. I recently witnessed a group of my fraternity brothers laid off from Haliburton because the oil and gas industry took a dip. The entrepreneur trend is happening because people are starting to understand the future is being self-made.

The only secure job is the entrepreneur! Why, because the entrepreneur’s security is based strictly on the value they create. If A new technology emerges your employer will replace you. Sorry! But, the market determines the entrepreneur’s paycheck. My friend, I won’t say his name because he doesn’t like to be publicized, created a 6-figure income selling items on eBay and Amazon. His snapchat would make the most satisfied employee question his life. He travels the world, drives luxury cars, and I’m sure he’s not worried about losing his job. The reason is simple if he creates value his lifestyle is secure. This means if you want security you must learn to create value.

I want to leave you with this story and hopefully, you will see why you should join The Rise of The Entrepreneur. In 2015, I visited Los Angeles for the first time. My friend and I scaled the legendary Runyon Canyon. As I peered over the summit and witnessed the stunning view of Los Angeles something clicked. I don’t know why but I realized how much time I wasted stuck in my bubble. It’s because I didn’t know what was possible. I’d heard about beautiful views but once I saw this, my life changed forever. I thought what other beautiful views was I missing. I thought about what opportunities have I missed because I didn’t know what’s possible. The point is this, you might think traditional education and the corporate ladder are where you’ll find the most security. However, this is because you simply haven’t seen what’s possible. If people can make money video blogging about video games, you can make money doing something you love.

The future is ours. Entrepreneurship is laying the foundation for you to live a life of freedom. A life where you make money and also enjoy the ride. This is not just a beautiful vision but the only sensible way to thrive in the new economy. The world is moving in the direction of the entrepreneur.

it’s best you join the wave.

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