The Benefits of Stagnation


There are benefits in stagnation.  Let’s be really careful about believing what we see and hear in our daily media.  First most of the output is the noise of opinion and conjecture.  In addition a lot of  daily information is driven by hidden (and not so hidden) agendas.

Let’s be even more careful about how we feel  after reading the news.  Our emotions usually supersede and often direct our thoughts.  When we wake up feeling dread, it’s hard to have good, fresh, positive ideas and enthusiasm.  Plus life has more to offer than dread.  When we feel too much dread, we’re just a R away from dead.

This is not the fault of the press. They are forced financially to relay on bad news because bad news sells.  The majority want to read it.  They revel in it and worry about it.  So we are stuck, looking for the nuggets of truth hidden in the mountains of spin.

We can turn this into an advantage.  We do not have to (in fact we cannot) join in the negativity.   So let’s better understand the media and how we are bombarded with its misuse of the word.  Let’s examine for a moment the word “stagnation”.

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Take for example, how much has been written about the slow American economic recovery since the Great Recession.  The media paint this black, when in reality slow and steady are really good.

The greatest  destroyers of wealth are bubbles.   A bubble of over priced shares created the Great Depression in the 1930s.  A bubble of overpriced shares in 1999 create the December 1999 crash.  A bubble of overpriced homes in 2007 created the September 2007 crash.

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Human nature usually stumbles along in bubbles and bursts.  Then once in awhile we get it right and have steady expansion.  Those times are really good!

Here is how the misuse of the word “stagnation” can throw us off a positive track.  A December 2016 Wall Street Journal article “Barely Half of 30-Year-Olds Earn More Than Their Parents” says “fewer 30-year-olds earn more than their parents so the American Dream is fading and may be very hard to revive”.

A recent economic study at Stanford, Harvard and the University of California found that just over half of American 30-year-olds—51%— earned more than their parents did.

The spin put on this by the media was:  As wages stagnate in the middle class, it becomes hard to reverse this trend.  That’s an enormous decline from the 1970s, when 92% of American 30-year-olds earned more than their parents.

The conclusion, by at least some of the mainstream press, is that it becomes hard to reverse this trend and that even rapid economic growth won’t do much to reverse it.

The media misses (or chooses not to see) that change in earnings growth may be not be a problem.

There may be numerous positive aspects to this.  The 52% of 30-year-olds who are earning more than their parents might be earning much more (then 30-year-olds in the 1970s).  Perhaps the American family unit is growing stronger in the USA so more families are living together longer and are happier for it.  Maybe the 30-year-olds have grown less materialistic and are focusing more on health, or more purposeful pursuits.  Perhaps fulfillment of socially enhancing goals is more satisfying than money.   30-year-olds might may want less stuff and desire smaller homes.  Less things and a less cluttered life are not so demanding on health, family, friends and the environment.

The media spin however is that slower growth of income is ruining the American Dream.  I am not sure anyone has defined or agreed on what the American Dream actually is, but what is missed in this Wall Street Journal slant are the positive benefits.   For example there is opportunity in improving education, infrastructure, environment for pre-30-year-olds and finding ways to redistribute wealth that do not defy human nature and create social unrest.  There is profit potential in the small home movement and in helping the world live better with less.

Again this is not the mass media’s fault as they cannot see what’s ahead anymore than you or I can.  Even if they could, their need to compete for subscriptions and time bites, mean they would not have time to present a bigger picture.  The communications industry  is trapped by the public’s attention span.  The news has to define the future using technologies, strategies, tactics and mindsets of the past.  Reporters in the 1980s could not have envisioned or incorporated the potential of cells phones, personal computers, the internet and World Wide Web to color the flavor of their stories.  The news today cannot slant conclusions about a future that will be determined by currently unknown or unused innovations.

Here is what we can do to gain from this.  As we enter the New Year, we can process the onslaught of information that bombards us, by remembering these three facts.

“There is always something we do not know”

“There will always be change”

“Every problem is an opportunity.”

Instead of thinking “Oh No”, look at every apparent difficulty, with the thought “Oh Yes”.  Even if you cannot come up with an immediate solution, know that one is there, an opportunity just laying there, waiting to be revealed.

Be careful of false news, hidden agendas and spin in the media.  Look through the slants for the grains of truth and reality.  Throw in positive “what ifs”.  Then look for the opportunity within.

Gary

(1) www.wsj.com: The American Dream is fading and may be very hard to revive

Live Anywhere – Earn Everywhere

How to Gain Extra Freedom – While Almost Everyone Loses Theirs.  Profit from post COVID-19 trends.

I invite you to join Merri and me in expecting the world to get better… to live and earn based on that expectation but…  to also prepare for bad times as well as good.

Just in case… the world goes sideways… we will still survive and prosper.

We do not give up anything much.  We can enjoy the good parts of the new economy, as we protect ourselves from what can be bad.

For example in my report “Live Anywhere-Earn Everywhere”,  you’ll see how to make your dining room table bring you more control, more time, more income and more freedom.  After all, what can be more accessible than a dining room table?

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Dining room tables we worked from (and we also sold the tables for a profit).

You’ll even learn how to turn dining room tables into income and tax deductions as we have with these dining room tables we build out of local wood.

Let me be clear.  I expect that the world will get better, at least for the few who adapt and avoid the dangers that the changes from the COVID pandemic will bring. 

The wealth of the world, albeit with inequality, will continue to grow.  This collapse of the global economy will bring an incredible new opportunity for those who know what to do.  Thes profit making avenues offer enormous income potential and even work well in disaster scenarios.

Let me provide one simple, concrete example.  Ginseng.

This is a great health root.  The demand is growing especially in China.  At times good dried Ginseng sells for $1,000 a pound!  This is an incredible and easy crop to grow.   The less care you give it, the more valuable it can become.  Yet if everything goes south, the health qualities will be good to have and make it an excellent barter item.  Once you know what to do with ginseng, it’s easy to grow in your back yard.

Even better one of the best kept secrets is that ginseng and 125 other medicinal crops that are currently unsustainable but can be grown on land  that is extraordinarily cheap.

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Ginseng we grew in our back yard.  I know about growing ginseng through experience and explain why and how in the report “Live Anywhere – Earn Everywhere”.

Loquats are another example of an easy to grow crop that help promote natural health.

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Here I am by one of the many loquat trees at our Florida farm.

Loquats are a great fruit for making jam and such, but the loquat leaf has amazing medicinal qualities.  Its is a registered medicine in China and due to its anti viral and respiratory system enhancing qualities has an especially  growing demand right now.   The images below from Amazon.com show that the leaves sell for about a dollar per leaf!

I have many trees on the farm but started growing loquat seedlings last year.

loquat

Loquat leaf tea has become really important during the pandemic due to its respiratory strengthening qualities.

I have been drinking a lot of home made loquat leaf tea during the pandemic.

The report “Live Anywere-Earn Everywhere” shows specific places that reduce your living expenses, easily increases your income, makes you smarter, healthier and provides tax benefits as well. 

There are specific places where property is especially inexpensive, now because previous owners do not know about the special qualities created by the pandemic.

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Here are some of the experiences this report shares:

The report includes a tax and career plan broken into four age groups, before you finish school, from age 25 to 50 – age 50-to 65 and what to do when you reach the age where tradition wants you to re-tire.  (Another clue-you do not need to retire and probably should not).

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The report shows how to buy cheap north facing slopes and create an income producing tiny home for $29,000 or less.

If you lack the $29,000 to invest, a start up using tents is even less.  These are tipis we put up at our farm before we built our first tiny home.  Learn how they can create tens of thousands of dollars in income for you.

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  • See ways that small businesses like Tipi rentals can be enhanced by the pandemic but also create BIG tax savings as well as extra income.  For more than 30 years Merri and I have enjoyed a strong six figure income, some years more, in the millions.  Yet there have been very few years when we had to pay federal income tax.  The report lays out a three structure program and how it is used when you are in school (up to age 30), then from 25 to 50, 50 to 70  and beyond 70.   Learn why Chapter C corporations and pensions can be better than the normally recommended Chapter S.  See how new mileage log rules gives you a possible opportunity to increase your tax deductions using IRS Form 4562.  Using a two-vehicle strategy you can gain $12,976 in new deductions even if you do not have to drive one mile further or spend one additional penny on your car.
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Our North Carolina greenhouse.

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Our Florida greenhouse.

  • There are similar benefits from having a second home office defined in IRS publication 463 and IRS publication 587, even if your desk is a dining room table.  The report also shows how your dining room table can become an actual income producer as its creates a huge tax deduction at the same time, not to mention a great place to eat, work and lay out plans for a brighter, safer more lucrative and enjoyable future.
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merrily farms

This pond we created at our farm brought us pleasure but also helped create a safe, healthy food supply, extra income and a tax deduction as well.

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