Tag: Economics

  • Know What You’re Worth

    Know What You’re Worth

    Self-knowledge is not only the intrinsic value of your existence, the spiritual powers and carnal qualities of your being, nor is it merely the sum of your productivity as a working human, it is also the superficial measurement of your net wealth.

    Not to elevate our finances to the highest value, but this analysis is one that can help guide you toward a life plan. To carry out a life plan will elevate your will power and imbue your life with purpose. This will lead to a greater good in your life, if you’re a good person.

    My financial writing is not meant for the wealthy. It is for the average person just beginning to get their boat afloat, if you like. I am myself just beginning to sail, and I am not wealthy.

    As soon as you embark on the journey of long term investing and retirement planning — no matter how old you are — it is good to have a sense of your net worth.

    There are probably lots of people who make more money than me who never bother with this. The structure of their finances are probably very similar to mine, so this spreadsheet would help them too.

    I bet there is an alarming number of medical doctors whose overall net worth is in the red.

    That prospect is simple. Say you’re a doctor. You’re 30 years old. You have a six-figure income, but you have $100K in medical school debt accruing interest, and you bought your first home adding $300K to your debt, again with massive interest charges. Assuming you lease your car (no debt), you’ll need home equity and investments valued above $400K to hedge against your great saddling debt.

    To look at the interest charges you’ll pay over the lifetime of a mortgage or student loan payment is frightening. Best to ignore it for now and focus on the idea of net worth in the event of liquidation.

    In terms of ratios, the person with no college, starting out at Walmart, in the short term will surpass the net worth of the doctor. The doctor is highly leveraged and carries liabilities out the gate in life.

    The 17-year old cashier could save at least 50% of their income at first and draw it down to 10% as they become independent, relieving the parents from the cost of hosting them. Out the gate, this worker has the opportunity to build their net worth in the green.

    If the cashier rises up to General Manager after ten years, they too can earn a six-figure income. If they learn how to invest their portfolio, they could end up living next door to the doctor in a cul-de-sac. Who gets there first is a tortoise versus hair scenario. The doctor will rapidly earn more money once they enter the workforce, but the entry level worker can build their wealth debt free.

    This is why everyone should plan their finances, not because it is a race or competition of some sort, just because anybody can elevate their situation with focus and planning. I am speaking from experience. I was raised poor and until age 34, I held myself down in poverty. I’m starting later than the doctor, I am low-income. With planning, I believe I will retire before age 60.

    Once every quarter, I go through all of my financial accounts and enter the balances into a spreadsheet. I am including it as a download here. It is a straight forward net worth analysis. Also notice that I have formulas in the cells. These are calculators. I did the work so you wouldn’t have to.

    There is a primary goal for this spreadsheet. It is to predict the maximum liquidity of all my assets, literally all of them, imagining a scenario where I want to reduce my debt to zero and unload my possessions down to a backpack full of cash and nothing but a change of clothes. This figure is my true net worth.

    When you see these celebrity and CEO net worth articles, most of them are highly overvalued. There is no way Elon Musk can cash out on his shares and retire with $100 billion in a duffle bag. It just is not that simple.

    It kind of leads to a gross misunderstanding of the term net worth. I call that gross worth. Net worth to me is simply my liquid assets minus the sum of liabilities. It is easier to figure than Musk’s money.

    In the process of building this spreadsheet, I decided to include net credit limit into the gross worth figure. If I started cash advancing my credit cards and pulling my balances as quickly as possible, what would be the maximum cash I could liquidate? For this, the spreadsheet adds up total available credit, cash on hand, investment accounts, inventory, and home equity.

    Inventory is important for understanding net worth. Considering the minimal time required to keep an inventory of your possessions, with model and serial numbers, I would say it’s worth it. You can even point that cell on the analysis to your inventory total so that it will update your net worth when you manage your inventory.

    By the time you go through your house, add up your car(s), furniture, computers, and devices, depending on how far you want to go with it, your cookware and knick knacks, with modest resale values associated, then you can track an ongoing inventory of your estate.

    The minus debt field simply deducts my credit card balances and all other debts from the gross, giving me the post-debt figure, which means I pay debts off but run my credit cards to the max to go off the grid. It’s a weird figure, it’s almost pointless, but I like it.

    Liquidity is the final figure for net worth in this spreadsheet. It is also the only realistic number. This time I leave the credit limit alone as if I’m cutting up my credit cards. I total up cash on hand, investments, inventory, home equity, and deduct all debts. This scenario would have the maximum cash I can stuff into a bag after selling all possessions, investments, while paying off all debts.

    The truth of your liquidity is still not revealed. There are costs every step of the way. If I sell my house, I’m out thousands in closing costs and fees. Some people still pay brokerage fees to sell their stocks. If you sell your inventory in a hurry, you probably will get a fraction of its top value. I bear all that in mind, but I don’t have a calculator for it.

    Finally, there is one more figure that I realized I should know and estimate for the sake of my parents. My parents will depend on me as they grow old, so I want to know how much they could potentially get from my estate if I suddenly passed, God forbid.

    I do not presently have kids, so I don’t have a serious life insurance policy. Mine is free through the credit union and it pays one grand, which amounts to a basic cremation process.

    The better news about this total, even though I don’t benefit, is that it adjusts for student loan forgiveness. The only person legally responsible for my students loans is myself. This is the case whether I’m single, or married with children. So long as I keep my credit ratio well below cash in the bank, and my other debts below my home equity, then there will be enough of my capital remaining for them to reinvest into their portfolio.

    Prepare for the worst, work toward the best.

    In addition to this template, I have sheets that reference investment balances to chart growth (or loss). I have a very simple sheet that I will update annually for 20 years to ensure I am meeting or exceeding my goals. If I exceed, then I should at that point own my property and inventory outright and be able to bring my monthly obligations down to negligible figures.

    My entire collection of sheets that work into the analysis and projections include a budget. I update this annually to estimate my income and factor in expected costs, everything from taxes to recreational drugs. 

    The whole jawn is a comprehensive tracking system that no third parties have access to. Don’t leave it up to corporations to provide your financial analysis. They use and sell your data. They might even mislead you. Learning this template will earn you the skill to track it all on paper if you want to.

    I have included three versions of the Net Worth Analysis template. It was built in Apple Numbers, exported to PDF and Excel. I replaced my figures with basic numbers and generic labels. You are meant to personalize it and refer to your accounts.

    It is simple, just start adding your bank accounts and what not into the fields and watch the numbers update. Many of the cells contain formulas. Drop a comment if you have any questions about it.

    Download the Spreadsheet

    PDF VERSION

    APPLE VERSION

    EXCEL VERSION

  • Could “Intellectual Apartheid” Be a Thing?

    Could “Intellectual Apartheid” Be a Thing?

    Those not watching our planet becoming a mess of conflict may be too embroiled in their own concerns to see it happening. Some people, not just social scientists, journalists, and the like, make it their personal concern to see how the world and its leaders are managing their business. If someone has been observing this conflict over time, it is clear we are in a period of great tension. It is not yet civil war, but threats are made. We fight over the same reality, the same world, because from our own eyes it is somehow different from one person to the next.

    Because there is not a consistent honest narrative across media platforms, which are ideologically fragmented, those differences lead us to fight amongst each other, rather than observe the common threat, which is unfettered power over the people.

    Some argue that it is in fact the consolidation of corporate media, from hundreds of local and regional media companies, and broadcasters, to just a handful. This is a valid argument, however complicated by the new media ecosystem evolving out of podcasting. I think we would be remiss not to analyze the phenomenon of literacy and self-liberation from intellectual oppression.

    The United States has produced more citizens with college degrees — sometimes multiple degrees — than ever before, by an incredible margin. The gender gap narrowed and crossed over in 2015 so that women are now better educated than men. This is an incredible reversal since 1940, when women also first entered the work force.

    The percentage of Americans with four years of college education or more has improved from 5% to 35%, which doesn’t sound so impressive until I point out this represents a 700% increase since 1940 — we had already become a modernized nation with world leading literacy rates and universities across 48 states.

    Without getting into the weeds, we also know that literacy rates have improved globally, while ethnic minorities and immigrants enter higher education at increasing rates. Speaking as a White Male, I am not threatened because I believe in a diverse world where gender roles and ethnic cultures are celebrated in a political-economic system that cherishes everyone’s inherent contribution. That is not what we have now.

    The dominant class demands specific social attitudes and economic adherences or you and your business will not be able to survive. Millions of Americans reflect the feeling that they have to compartmentalize their real opinions and feelings from one relationship to the next. I believe this is natural, to some extent. You should not be intimate with your boss, or submissive to your spouse. What I am concerned about is people conforming their behavior to accommodate those that hold power over them, be it their boss or their spouse. We should all be nice to each other, polite, and considerate, out of genuine concern, not fear of repercussion. Civility is disappearing as a symptom of what I am analyzing here.

    I watch the privileged white liberal class going around calling their opponents racist, sexist, homophobic, transphobic, and xenophobic, while the number of white males in positions of power, their educational advantage down to their share of labor jobs, all declining.

    Let me tell you what I am: I am arachnophobic, and I’ve been one step ahead of the spider my entire life. The spider is the global elite, friends, and their webs are in the media, the education system, politics, and they drive the economics. 

    When your identity is rooted in economic class, you are together with the 90% of Americans. Only the upper 10% have seen any kind of wage increase since 1970, while the 1% enjoyed an incredible period of wealth accumulation over the same time. The average CEO was paid about ten times wealthier than their lowest paid employee in 1950, whereas today they factor in the hundreds, and that is on average. If you compare Warren Buffet to his janitors, or Jeff Bezos to his fulfillment clerks, we’re looking at an easy thousandfold disparity. Everybody is marginalized in today’s economics.

    Nobody wants to study the decline of the American white male out of fear of repercussions from the dominant liberal class. I could be labeled alt-right just for observing this even though my personal ideology puts all genders and ethnicities into an anarchist-libertarian cooperative society that would make it impossible for any single identity to become dominant, because power is not held in leaders, rather, in cooperative bodies.

    I do not get to live in that world, I am required to abide by the neoliberal capitalist framework in America regardless of the cognitive dissonance this puts me through, regardless of the mediocrity of my superiors, and the failures of their systems.

    Why is the steady decline of workforce participation among white males totally ignored in the narrative of white privilege? Because narratives aren’t facts. Facts educate the mind. Narratives entertain and condition the mind. You are better controlled by narrative. They give us the facts, but very few people study them. I suggest you study them.

    Women and ethnic minorities competed for wages, won the jobs. Employers got away with reducing salaries for all.

    It is good to see wealth transferred from the few to the many, but that is not what happened in the period following civil rights and women’s liberation. The total share of earnings was diluted by workers accustomed to less pay, in a system where entry workers cannot negotiate their wage.

    The American workforce participation rate declined, most sharply in 2009 when President Obama supposedly saved the economy, and it never recovered. Important to understand when unemployment goes down but the workforce participation rate remains flat, then the percentage of remaining unemployed transfers over to workforce participation rates. Lo and behold it was down 5% from 2007 as President Trump touted the best unemployment rate of all time.

    Corporations hired women for decades, improving their wages to the detriment of total household wealth. See this clearly, because it is good that women and non-whites are getting better jobs and pay on a positive trend line since 1970, but it is unfortunate that average wages have flattened over the same curve, thereby reducing household wealth over time, stealing from everybody, installing the two-income paradigm.

    I am not even discussing the extraordinary drag on American wages resulting from free trade agreements with China and Mexico. Millions of good paying jobs were exported. The whole phenomenon is complex, but to simplify, we no longer compete only with American laborers and immigrants, we also compete where we cannot even access the labor market.

    The few have become less and less a group of white men. The 1% would prefer it that you not see that they are also becoming more diverse than ever, because they know they have an effective narrative at play when the people fight amongst each other for scraps.

    All you have to do is look at the Forbes Billionaire List to see who the billionaires actually are. They belong to a special club, and they know one another. It is the billionaire scene. It is far more classist than racist, or sexist. The foundation of identity politics, few understand, is class identity.

    I am a white male, but my history shows a combination of factors that are comparable to communities of color. I graduated high school with a D average. I worked hard after that, earning a 3.65 GPA for my Associates Degree at community college. I have never earned, in my best years, the median individual income. I have been fired from several jobs due to personality conflicts. I rarely get called for job interviews for anything paying more than $12 per hour. I have experienced housing insecurity. My Father has a felony on his record, a problem that haunted our household. They cleaned homes and offices for a living for ten years. Half of my public school classmates were non-white in the Mexican immigrant neighborhood I grew up in. I was latchkey, they rarely helped with schoolwork because they usually worked themselves into the night. By Junior High, I did most of the house cleaning. We moved to Arizona to fend off rising costs in California, and because my parents had no risk management skills, because finance is an upper class trait that nobody taught them, and they went bankrupt. Their parents were gambling addicts and alcoholics. I was a first-generation college graduate, again, from community college.

    Add to the balance that I was born into the Church of Scientology, making me a weirdo at school. I am permanently traumatized from being identified as the outsider, ever year K-12, because that identity was instilled so early on. My parents bypassed personal responsibilities by funneling me through Scientology coursework, further alienating me from them, from myself, and the average person at once. My entire adult life can be observed as a struggle from one position to the next, never quite fitting in, often feeling dismissed on personal grounds, then emotionally lashing out from it, bringing myself down and burning bridges all the time.

    I struggle to find my privilege. I am a highly marginalized individual with a story that doesn’t fit into the logic of identity neoliberalism, just because I am a white male does not mean all the doors have opened for me. Mostly they have slammed shut. 

    Don’t tag the victim card on me, because this is not the point. The point is, if personality is what gets you passed the job interview, that enables people to be taken seriously in debates, that makes you a social media influencer, a television journalist, then personality is exactly what makes me unprivileged, rather, I am disastrously marginalized. And it demonstrates class privilege above all.

    If our world is a cult of personality, then those folks who do not match up will be prevented from sharing their talents and contributing their genius. This is the world I believe we live in. It is driven by a global financial order, not a white one. It infuriates me to see the white liberal class turn the truly marginalized artist class into a mouthpiece for the global elite.

    My argument is that personality has become the number one factor for marginalization today. What matters is your orientation to authority. This is why China and the Chinese people are close to knocking the United States off the global pyramid. Again, I am not threatened, because I know the people of China want liberty too. The more educated they become, the more they will demand liberty. That is why Xi Jinping has consolidated power and control using internet technology, in addition to good old brute force. That is why the Occupy Movement was shut down in brute force. That is why we have been quarantined.

    As more and more folks are educated, there are personalities that don’t fit the mold who take their genius into manual labor, doing rote work, where they are stuck with their brilliant ideas for which they cannot access capital. If we are lucky, we get to listen to podcasts at work, while yearning to interject that conversation rather than pack boxes for Amazon. We are deeply frustrated. Some folks are inclined to fall into depression and addiction, so lo and behold, we have the opioid epidemic at play. Then the liberal elite solution is just to give them safe injection sites and to selectively enforce trafficking laws while continuing to deprive people of universal health care, the only thing that would actually prevent rampant self-medication.

    I suppose the bottom line I am making is that most people now are smart enough to see that the narratives are not adding up, the stories we’re hearing are not real, but we blame and shift our trust into different authorities rather than awaken our powers of discernment. We seek enemies of convenience when we fail to see the common enemy. I know that folks are smart enough to realize when they have been duped, so I worry about that day coming, because I think it is a little bit backed up by now.

    We are smart enough to develop arguments and have opinions, but we are not cautious enough to hold off before pointing the finger. We are deliberately placed into this social media industry as willing tools of their profit to become addicted to the fear and anger that it generates in us. This is a clearly understood, documented marketing strategy. It is disgusting.

    I believe that someday we will come to realize that we live under the invisible regime of intellectual apartheid. If this is a form of apartheid, where the most intelligent people in the country are told what to think by the media, by the politicians, and by social media influencers, there will not be conformity without resistance. I believe we are watching right now the divide reach unprecedented tension, and it will snap.

    With the most educated populace ever, the pressures will continue to mount until our workplaces are democratized, our financial systems are democratized, our scientific discourse is democratized — a whole revolution of liberalization within the American constitution. I believe that our constitution and our system can accommodate extraordinary progress over time. All advancements can be made peacefully.

    I don’t know if we need to be led out of this, or if we need to wake up individually. If I am right, we’ll see authoritarianism rise to be challenged and defeated, or completely defeat us.

  • Democracy and Personal Freedom in Big Finance

    Democracy and Personal Freedom in Big Finance

    Photo of Slovak Radio Building, an upside down pyramidal structure for me represents how we need to build society.

    This is a freewheeling introduction to what should be a series of articles designed to walk a beginner through the daunting field of personal finance. I want to make my motivation, and in a sense, my qualifications clear in this introduction.

    As bad as the outcomes of our economic system have been for average working class folks in the last several decades, including myself, the average American is confronted with greater access to financial investment products than ever. I would advise any young person today to get their first job in High School and start that portfolio before they enter college. It is not a college fund, it is a post-college fund. Or, I would say, “Skip college!” But that’s another argument.

    I am a great example of what is possible for a low-income person. Here is the short of it: I went from, at the beginning of 2017, flat broke, on food stamps, bad credit, and crashing in someone’s basement for free, to, by the end of 2017, keeping thousands of dollars in the bank, a good credit card, and a credit score around 700. I even had a vacation that year. I only made $1,500 a month. By January of 2019, I owned my first home, had a second credit card, a credit score of 750, and several thousand dollars in the bank. I made just a little more that year. We are approaching 2020 and I have my finances diversified over several investments while maintaining an emergency fund, a third credit card, and passive income as a landlord. At this rate, I could retire in twenty years, especially if I stick to a full-time job. I haven’t!

    Beyond personal financial liberation, there is a social-political motivation for me to develop a portfolio. Our capacity to engage with corporations as shareholders is greater than ever. The opportunity to grow personal wealth while supporting companies that we can believe in is also greater than ever. Numerous social challenges confront us, but if each to our own utilize finance as democracy and democracy as finance, then social solidarity can make a difference at the core of the corporations, and possibly spawn startups that would not otherwise see a market without our investments flowing toward positive ends.

    I’m not going to take the time to source my claims here, but I am sure of the following statements: Average incomes have fallen against inflation, homeownership rates have fallen, workforce participation rates have fallen, average household costs have risen, wealth disparity has risen, and corporate profit has risen. Feel free to verify these observations. I am stopping myself from going into climate change and health care. If we each practiced finance correctly then I am positive this would improve.

    There are many problems facing us. We can engage directly from the mature position of shareholder, or we can stand on the sidelines and complain from a social media feed. When you are a shareholder of a company, you have the right to complain. When you are not, you do not. For example, the difference between a regional credit union of which your membership represents a share of ownership versus a major corporate bank of which you are just a customer: One directs profit back to account holders and into local communities more effectively than the other; I will let you guess who.

    If the product you consume from the company, as a customer, does not meet your satisfaction, you may complain, but as far as how that product is produced, you have no leverage. Perhaps a can of coke is just as satisfying as ever, but you want to reform Coca-Cola’s corporate practices. How do you do that? Activism generally includes boycotts, strikes, picketing, and journalism, in the tool box. How about adding participation through investment?

    The stock market is a public, democratic system. Most of the biggest companies are publicly traded: Coca-Cola, Microsoft, Ford, U.S. Steel, etc. If you own just .000001% of Coca-Cola, you still have .000001% of the annual votes. There are votes every year, and various positions are adopted by the Board. Commonly, Board members hold more than 2% of the shares.

    There can be an upside down pyramid so that the masses are directing policy up through the Board rather than what we are accustomed to, where only the wealthiest investors hold influence.

    The more people that own shares the more diverse the set of owners. If ten million Americans own .000001% of Coca-Cola, together they own 10%. They have massive sway, assuming there is solidarity between them, they could even organize and put an activist on the Board with that kind of leverage. 10 out of 300 million, that is only 3% of the populace; they ought to find at least partisan solidarity.

    Fact is, it is easier to open a brokerage account and invest small amounts of money than ever. Only fifty years ago, a single market transaction would cost the equivalent of one week’s average median salary. Now it is free at a range of established brokers.

    I personally use Robin Hood. They offer exactly what I need: a good web-based interface with instant access to my deposits and fee-free trading, including cryptocurrencies. In future blogs I can dig into features within Robin Hood, such as stop and limit orders, fractional shares, and financial management tools.

    It’s not just about opposing a company’s practices, it is also about engaging with a company you believe in. I personally try only to purchase from companies that I care about. I hope my stocks are held in companies that are working on the solutions to climate change and social inequity. Whatever aspects about them I do not like, I feel better voicing that as a shareholder than just someone standing by.

    When you rent your housing, you’re throwing money wherever the person or company you rent from is throwing their money. They may be shareholders in companies you adamantly oppose. There are all kinds of externalities, social and environmental ramifications that we cannot see immediately in the production or consumption of a product or service, associated with our consumer behavior. I believe you should spend your money where you feel good about it, but only after you’ve funded your investments, and your investments should make you feel good.

    My next post will take you through how I evolved from chronically broke to constantly growing my assets. If you have more spare income than me, you’ll be wealthier than me in no time by following my advice.

    If you would like to support my personal finance content then you can join Robin Hood and hook us both up with a free stock.

  • Willy Wonka: A Millennial’s Guide to Economics

    Willy Wonka: A Millennial’s Guide to Economics

    Originally written and published on my personal blog, in 2013, this analysis of the 1971 film Willy Wonka and the Chocolate Factory is humorous but an earnest exploration. It was edited and republished at THRU Media a couple years later. I have taken another proofread to it and I present it again, without graphics, cleanly edited.

    The classic 1971 musical film, Willy Wonka and The Chocolate Factory is a period piece set in London during the Great Depression. Wait; usually a Depression is set in America. Come to think of it, there are computers and television in the film — those are post-war fancies. One of my favorite scenes involves a technician with a back talking computer that won’t cheat the precise location of the Golden Ticket. The technician is British. Charlie’s teacher is British. The urban locations were actually shot in Munich. Charlie is American, the newscasters are American, Wonka seems to be American as well. Maybe this is intentional to create a more universal sense of place. But since everybody is white, it’s only really speaking to Western society.

    This may seem like a careless analysis, but I could start at any point in the movie. You have seen this film many times. It is a staple to your cultural perspective, if you are from Generation X or Millennial, because it is the most subversive G-Rated film you saw at a young age. It was at every video store, and your Baby Boomer parents remember it quite well because they did acid to it in 1971, and they wanted to blow your mind with it. It’s not that it was a blockbuster hit, it just has lasting power. It has me thinking hard now some twenty years later.

    But we can’t just move on with this mystery looming over our head. Simplify it then. It takes place on Planet Earth in modern political times. Right? It has a way of seamlessly avoiding the precise location of Wonka’s factory, but it’s revealed that it’s within walking distance from Charlie’s route — weird scene early on depicts knife sharpener creep dude saying, “nobody goes in, nobody goes out.”

    The Synopsis

    Poor Charlie Bucket is taken care of by his single Mother, working in some pre-industrial laundry room with washboards and buckets. Charlie is becoming a young man with his first ever paper route. He buys a loaf of bread to go with the cabbage water for dinner that his Mother provides. Their poverty appears ludicrous next to the opening sequence, “The Candy Man Can,” where Charlie basically misses out on all the free candy that all the other kids are having.

    The grandparents, aunt and uncle just waste space in bed as if to represent Depression itself. But Charlie has real affection for Grandpa Joe, notably when Charlie pushes tobacco on him and he turns it down. It makes me think of that naive false altruism that seems to be rampant among the poor — a virtue that is more self-destructive than creative. Charlie’s hunt for the Golden Ticket is given an encouraging morale boost from Grandpa, “You’ll win because nobody wants it more than you.” 

    When the hunt begins for the Golden Ticket, you’re taken around the world where every other kid is enjoying economic opportunities nowhere close to the abject poverty of the Bucket family.

    Enter the spoiled brats; kids with everything and not a fart to give the world. First there is Augustus, the benign German fat boy that takes a bite out of a microphone; the son of a successful butcher. Second up but perhaps the most memorable is English girl, Veruca Salt, heir to a wealthy snack tycoon (Salt’s Peanuts) and so god-awfully selfish that only her Father truly tops it, since he monopolizes the supply of Wonka bars. This gains Mr. Salt access to Wonka’s factory, and Wonka himself, while buying the love of his daughter. Every capitalist knows that would be a significant return on investment.

    Next up, Violet Beauregard, the self-congratulatory nitwit American gum chewer loud mouth daughter of an Automobile Dealer. She may be the loudest and yet most benign of them at this point. And finally there is Mike Teavee, the back talking kid obsessed with television and guns, from suburban Arizona. His seeming middle-class parents have no influence over him.

    The commonality between these characters and their parents is a lack of responsibility and relationship with their kid. They also seem to be only-children, you know, without siblings, but that may only be implied. The kids disrespect their folks, order them around, get all their desires met, and show no apparent sign of maturing into young adults. Whereas Charlie, his family may be poor, totally lacking savvy, and somehow stuck in a Great Depression all to their own, they seem to respect one another, and accept whatever fortune may come their way. This forced Charlie to become a young man. 

    The scene is set. We are all rooting for him. Charlie wins the ticket. All hell breaks loose.

    Introduction to Slugworth. Note the labels on his chocolate in the candy store — boring and unimaginative. You know the ending, so I’ll remind you that Wonka sets these kids up with a chance to share factory secrets, especially, the Everlasting Gobstopper, as a test of their moral virtue. And these are indeed closely guarded secrets. Make no mistake. Wonka is a big time industrialist. But he seems to be independent, as it were, not a Nestlé type. At the time the original book was written, as well as this film, no food stuff corporation existed on the scale of contemporary Nestlé.

    First to get knocked off is Augustus, the boy with no personality but a suit large enough to support two men. He drowns in a river of chocolate. He never even sees the Everlasting Gobstopper. Then goes Violet Beauregard, the gum chewer who couldn’t resist trying the five-course meal. She goes out as an ever-expanding blueberry.

    Charlie nearly gets it. Here is the unique case. Charlie acts as prompted by his Grandfather, his elder, and so is a mere accomplice. But as he floats toward the fan powered by fizzy lifting drinks, you knew it would be the bloodiest spectacle witnessed in the film. However, they belch their way back down. All is well.

    Next to go is Veruca Salt — which is long overdue by this time. She is the bad egg, the one that can’t get the golden goose and throws a tantrum. And so she falls into the bad egg bin of death. Then goes Mike Teavee, who doesn’t die per se; he just succumbs to the undeniable urge to be on television. And so he is miniaturized into oblivion. What keeps it G-Rated is Wonka’s assurance that they all have a 50/50 chance at survival.

    With all the kids knocked off, Wonka thanks Charlie and let’s them go, without the promised lifetime supply of chocolate.

    Here is the dramatic scene where everything in his office is in halves. Joe demands the chocolate, but Wonka screams at them instead. Wonka is wondering how he is going to clean up the death of four children, surely he’s a little on edge. But Charlie does the one thing Wonka wanted: He returns the Gobstopper. Charlie knew that this would betray Wonka, even though he was kind of a dick. “So shines a good deed in a weary world,” says Wonka. And that does it, his other half is fulfilled and Charlie inherits the empire. His family is saved by an industrialist. Then Wonka reveals the floating glass elevator, and they live happily ever after.

    The Analysis

    Let’s go back and consider Wonka’s factory for a moment. Beverages that cause anti-gravity, gum that causes enemies to explode, terror-generating environments (the psychedelic rowing scene), materials that last forever, teleportation technology, geese that lay gold, the UFO-like glass elevator, and an apparently self-sufficient edible biosphere. Perhaps these secrets are paramount to the motivation of people in the global fervor to win the Golden Ticket. Hilarious scenes like a woman whose husband is being held ransom for her case of Wonka bars — and she has to stop and think about it.

    These are military kind of secrets that cause such espionage. There is no way that Government forces could ignore Wonka, unless he managed to keep it all under wraps, or, unless he worked with the government. Or else he’s holding the technology against the government. In which case, he must be a revolutionary in favor of free democracy. Not so, because he went on this search to find a child that would learn his business and ask no questions, with complete loyalty, to become Wonka.

    I’ll be honest, I’m unclear, because I had a much more positive view when I first conceived of this essay. I wanted to stress Charlie’s honesty, integrity, and how that earned him the keys to a magical empire. But then I got to thinking about Wonka. He is apparently unmarried, lives in the factory, and is entirely concerned with his business. The more I analyze him, the more he looks like a sociopath.

    I start to worry for Charlie, because he’s naive, he’s a poor boy; his family always had complacence combined with moral virtue. Wonka is clever, a mastermind. Fake-Slugworth was planted at every location of the winning ticket. It seems to be a massive hoax funded by the temporary monopoly of the chocolate market — a plot to cause diabetes in the foolish. One goal in mind: Find an impressionable child to become his spitting image to carry out the business forever. That is why Wonka did the contest.

    Of course, it is all a story. The mystery behind the turn of events is the glue to the pages that keep it bound. The 1964 book of the same title that the film was inspired from was authored by Ronald Dahl, a Commander of the British Air Force in WWII, and became a best-selling Author in the post-war years. He knows something about military secrets. And this may be the crux of my interest in the whole story.

    I have been thinking a lot lately about the assumption of power that the United States has taken since the end of WWII. Cultural values in America have permanently changed since that time, with propaganda-violence as a profitable form of entertainment. Where the will of the people is not reflected in the legislation. Censorship and wiretapping has become commonplace. We are beginning to take on the features of Fascist Germany. We gained Germany’s secrets and continued developing what the Nazis started, but this time for the good – or so we believe. We understand how power corrupts, and yet we are concerned with being the most powerful nation as if that has always been our national identity. Not so. We were an underdog, concerned mostly with our own industries and liberty, until we defeated Hitler and Imperial Japan.

    Hitler’s military technology was more advanced than any other in the world. European forces just came together with an unscathed United States, rapidly developed new technology, and outnumbered the Germans, who were spread far too thin. The U.S.S.R. gained the other half of the secrets. The two have been employing them against one another ever since, and there is no greater expression to that than the Space Race. That race developed all the key missile systems in use today. This idea is not well researched and so could come off as a flimsy conclusion, but here it goes.

    Wonka is America’s Hitler. That would be a wild way to go, but actually, this is my take. Wonka represents the American Mad Man of The Greatest Generation that created tremendous technologies, entrepreneurism, and power. Charlie is a Baby Boomer. He represents the generation being handed the keys to the most abundant, creative, strange, mesmerizing, cut throat, violent empire the world has ever seen: Post-Modern America.

    I am a Millennial and I relate to Charlie. My world is bleak yet mesmerizing all the same. It’s a world full of automation and high definition media all the time. Yet the whole structure of it, the economy and culture driving it has vastly split the rich from the poor — Charlie lives in his own Depression despite seeing others swimming in candy. My generation is being handed the keys to a vehicle that hasn’t got any gas in it. In other words, the only way to get out of it is to join the elite, no questions asked. That is how we break the glass cieling in our own glass elevator.

    Millennials have to make friends with guys like Wonka, who value honesty and integrity, while steering clear of the deathtraps laid ahead of our path. We, the Millennials and late Gen X, just entering management, have to push through the crash course and come out on top to inherit the kingdom. But beware again; we will soon be setting the deathtraps, inheriting the mania that capitalist-industrialism requires for continuation. 

    Personally, I just want simple social equity and I don’t care about any kingdom.

    By 1973, two years after Willy Wonka and the Chocolate Factory film, and nearly ten years from the book release, a follow-up was published, written by Dahl, The Great Glass Elevator. I have not read this sequel.

    In 2006, Johnny Depp took the role of Willy Wonka in a remake. I have not seen it and I thought it would compromise the integrity of this essay. After all, it is Gene Wilder that makes the film a real accomplishment. I think the film is a masterpiece. Even to the effects, the sets, and the songs, but Gene Wilder is the only choice and I would bet that Depp really superficializes the character while the script removes all kinds of conceptual goodies like I’ve explored here.

    The only actor I would cast for Wonka today would be Daniel Day-Lewis. This one choice would change everything else. It’s too late for that though.