Why profits are better than wages

Dan explores some fundamental questions: what is the difference between residual income and linear income in both providing security and motivation?

This is a tough issue.  We are in a culture that has taught us to expect wages for our time.  The person who makes $10/hr wants $12 and so on.  The attorney who makes $100/hr wants to work his/her way up to $200.  Whatever the level, we’re talking about wages, or linear income.  Is your income linear or residual?  Here’s how you can tell.  Just ask yourself this question:  “How many times do you get paid for every hour you work?”  If you answered, “Only once,” then your income is linear – you are making wages.  Salaries offer linear income. Doctors … Read More