Personal Career and Financial Security Ch 19

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Questions and Answers

What characteristic of the typical American assembly line worker by 1950 is highlighted in the content?

He had less medical care than previous generations.

He experienced limited means of transportation.

He relied on community support for entertainment.

He enjoyed similar comforts to that of a medieval king. (correct)

What is described as one of the miracles an American worker could experience in the 20th century?

Working exclusively as a business owner.

Talking with friends over long distances. (correct)

Riding a horse-drawn carriage.

Living without any form of medical care.

What does the author refer to the new employee model as?

The entrepreneurial employee model.

The traditional employee model.

The prosperous employee model. (correct)

The declining employee model.

How long did the prosperous employee model reportedly last?

From 1900 to 1970. Signup and view all the answers

What disadvantage did many individuals face by 1980 regarding the prosperous employee model?

Progress became more difficult and stagnation increased. Signup and view all the answers

What important change occurred after 1970 regarding employment models?

The prosperous employee model diminished in effectiveness. Signup and view all the answers

What general misconception do many people have about the prosperous employee model?

It has been the dominant employment model throughout all of history. Signup and view all the answers

What is one of the two original models for achieving success as mentioned?

Owning a business Signup and view all the answers

Why was working for a ruler considered a more secure income?

Rulers had the legal privilege of taxation. Signup and view all the answers

What role does an entrepreneur play in a business?

A person who owns and operates a business Signup and view all the answers

What was the primary business before the Industrial Revolution?

Farms Signup and view all the answers

What financial risk does a business owner take compared to an employee?

They have their own money at risk. Signup and view all the answers

What was a consequence of the small size of government in America until the 20th century?

People had fewer employment choices. Signup and view all the answers

How did the Industrial Revolution impact employee wages by the 20th century?

Employees earned wages sufficient to live better than their ancestors. Signup and view all the answers

Why do business owners typically work longer hours than employees?

They are responsible for building their business. Signup and view all the answers

Study Notes

Models for Success Throughout History

Two primary models for achieving success have existed: working for a ruler/government or owning a business.

Early Models (Pre-Industrial Revolution)

Working for a ruler: Provided a more secure income due to the government's taxing power. Financial security increased based on the level of government position.
Owning a business (primarily farms): This involved saving to start or buy a business. The entrepreneur, the business owner, typically earned more than employees during good times and was less likely to lose their job in bad times.

Business Ownership Advantages

Profitability: Business owners earned more than employees when successful.
Job Security: Owners were often the last to lose their jobs during economic downturns.
Risk: Owning and running a business involved financial risk of losing assets.
Effort: Owners typically worked longer hours, especially during the business's early stages.

American Context (Pre-20th Century)

Business ownership dominant: Owning a business was the most common route to financial security. Government employment was limited.
Limited employment: Individuals faced a limited choice: own a business or be an employee.

The 20th Century – The Rise of the Employee Model

Increased employee wages: Industrial Revolution made businesses extremely productive, allowing employees to earn higher wages and improved living standards.
Significant improvement in living standards: 1950s employees had better quality of life compared to previous generations, including improved healthcare, food, transportation, and entertainment.
Employee model emerges: The employee model became a viable and highly successful pathway for financial prosperity.

The 20th-Century Employee Model (Prosperous Employee Model)

Duration: Roughly 1900-1970.
Assumption of permanence: Modern Americans assumed this model was always common despite its relative newness.
Assumption's lack of knowledge: Few understood the historical context, making the model seem established and permanent.

Decline of the 20th-Century Employee Model

Difficulty in success: By the 1980s, the prospect of a reliable wage increase through an established company had significantly decreased.
Challenges for many: Millions of people who followed this model faced stagnation or even decline in their financial situation.

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Description

Explore two primary models for achieving success throughout history: working for a ruler or owning a business. This quiz examines the advantages and challenges of each approach, particularly in the context of financial security and job stability. Discover how these models have evolved, especially before the Industrial Revolution.