The Big Beautiful Lie?

This week, we’re ripping the band-aid off the painful truth: the traditional employee career path is crumbling. We outline the tectonic shifts: AI, globalization, financialization, that are systematically squeezing the average worker. But these forces aren't some faceless, inevitable tide. They are often orchestrated, accelerated, and exploited by powerful players. And nowhere is this more evident than in the dark underbelly of Private Equity, amplified by one of the most egregious legal frauds perpetrated against the American worker: the Carried Interest Loophole.

This week, we're pulling back the curtain on the "Big Beautiful Lie." Remember the grand promises of comprehensive tax reform, the "Big Beautiful Bill," designed to fix a "broken system"? As always, it was a smokescreen. The carried interest loophole, a gilded gate to multi-generational wealth for the ultra-rich, remains not just alive, but thriving, directly on your back.

Here’s the stark reality: while you, the diligent W2 employee, pay ordinary income tax rates as high as 37% (plus payroll taxes for Social Security and Medicare) on every dollar you earn from your hard work, private equity titans, hedge fund managers, and venture capitalists pay dramatically less, often just 20%, on what is, in essence, their compensation for managing other people's money.

Let that sink in. They perform a service, just like a doctor, a teacher, or a skilled tradesperson, but because their pay is structured as a "share of profits" from investments held for three years or more, it's magically reclassified as a long-term capital gain. This tax alchemy allows them to pocket vastly more of their millions than you do of your modest salary. It's a system that incentivizes the very actors who drive layoffs and cost-cutting to maximize their "gains," knowing a substantial portion is shielded from the tax rates you face. This isn't just an obscure tax code detail; it's a fundamental rigging of the game, widening the chasm between the working class and the asset-owning elite.

Now, you might think this makes private equity the enemy, and in many ways, it is the architect of the traditional job market's demise. But here's the "dead drop" twist: if you can't beat them, you copy their playbook. Understanding the fraud being perpetrated is the first step to leveraging their own strategies for your own wealth. We're going to expose how this system works, and then, crucially, how you can adopt their aggressive tactics to build your own financial fortress, even as their era of unchecked dominance begins to crack.

This isn't for everyone. If your financial aspirations cap out at a comfortable 401K and a modest raise, you can stop reading now. This piece is exclusively for those who are serious about accumulating >$5 million USD and are ready to embrace unconventional paths and calculated risks.

The landscape of wealth creation is undergoing a seismic shift. The traditional employee-centric model, once a reliable ladder to financial security, is rapidly eroding. In the next 10 to 20 years, I anticipate a brutal reality for W2 white-collar jobs – they are, to put it bluntly, cooked. Completely fried.

Why such a grim prognosis for the employed, and why is this simultaneously the easiest time in history to get truly rich for those who understand the new rules? Let's break down the forces at play and then, crucially, outline the actionable solutions.

The Unraveling of the Employee Model: Why Your W2 Salary is in the Crosshairs

Six powerful trends are converging to make it increasingly difficult to build substantial wealth as an employee:

1. Financialization of the World & The W2 Burden: Sophisticated capital, especially private equity, now oversees a growing number of businesses. Their laser focus is on maximizing the company's sale value. And what's one of the first places they look to "optimize"? The payroll.

   Think about it this way: a W2 salary, especially for a non-revenue-generating role, is a fixed cost on the balance sheet. For a private equity firm looking to flip a company in 3-5 years, every dollar spent on a W2 employee that isn't directly tied to revenue or critical operations is a dollar that reduces the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Since businesses are often valued at a multiple of their EBITDA (e.g., 10x, 15x, even 20x for high-growth firms), even a seemingly small $50,000 salary can reduce the sale value by $500,000 to $1,000,000 or more at exit.

   Concrete Examples:

   • The "Head of X" Role: A private equity firm acquires a manufacturing company. They notice a large marketing department with a "Head of Brand Strategy" earning $250k. While this role might have seemed valuable to the previous family owner, the PE firm immediately questions its direct revenue impact. They might decide to absorb the brand strategy into a more junior, outsourced, or AI-assisted role, saving $200k+ annually. At a 10x EBITDA multiple, that's $2 million added to the sale value.

   • The Redundant Middle Manager: Two companies merge under PE ownership. Instead of having two HR VPs or two IT Directors, they rationalize the headcount. The "redundant" individual, perhaps earning $180k, is let go. This isn't just about efficiency; it's about making the balance sheet cleaner and more attractive for the next buyer.

   • Consultant vs. Employee: PE firms often prefer to bring in external consultants for specific projects rather than hiring full-time W2 employees. Consultants are project-based costs, not ongoing liabilities. This strategy allows them to scale up or down quickly without the burden of long-term salaries, benefits, and potential severance.

This relentless pursuit of leaner operations means employees are becoming a cost to be minimized, not an asset to be trained and nurtured.

2. Lower Friction to Hire New Employees: The digital age has obliterated geographical barriers and made hiring remarkably efficient. A job posting on LinkedIn can yield thousands of qualified candidates in hours. This hyper-efficiency in recruitment means employees are more replaceable than ever, making it easier for companies to justify lower pay and increased churn.

3. The AI Tsunami: Artificial intelligence is not just a buzzword; it's a transformative force. We are on the cusp of an "all at once" explosion of AI capabilities. Imagine an AI with an IQ of 200+, far surpassing any human. This means a vast swathe of white-collar tasks, from legal research to sales outreach, will be automated, leading to leaner firms, reduced headcounts, and a drastic devaluation of mediocre white-collar labor.

4. Globalization of the Labor Pool (Offshoring): The internet has turned the labor market into a global arena. US workers now compete with highly competent professionals from around the world who often command a fraction of the salary. This one-sided flow of labor, exacerbated by remote work, is steadily depressing wages in the US as supply outstrips demand for many roles.

5. Immigration Trends: Regardless of your stance, increased high-skilled legal immigration is a near certainty in the US. This influx will further expand the labor supply, intensifying competition for jobs and putting additional downward pressure on wages, especially for those in already saturated white-collar fields.

6. Accelerated Pace of Change: The speed of innovation is unprecedented. What took five years pre-internet now happens in one. This means skills become obsolete faster than ever, forcing employees into a constant cycle of reinvention. Staying relevant is a full-time job in itself, and those who can't adapt rapidly will be left behind.

In essence, employees will be squeezed from every angle. Salaries will flatten, the top-end of the market will shrink, and companies will become incredibly lean. While asset values continue to climb, the purchasing power of the average employee will decline, widening the gap between the "haves" and "have-nots."

"I'll Just Do Blue-Collar Work, Then!" – A Word of Caution

I anticipate many of you are thinking, "Fine, I'll avoid the white-collar trap and pursue a trade. Blue-collar jobs are safe from AI and automation, right?"

Not so fast. While it's true that certain skilled trades involving complex dexterity, problem-solving in unpredictable environments, and human interaction will remain essential, the blue-collar sector is far from immune.

• Robotics and Advanced Automation: Industrial robots are becoming more sophisticated, taking over repetitive manufacturing, assembly, and even construction tasks. Think automated bricklaying, robotic welding, and drones performing detailed inspections. Tesla's Optimus, for instance, is projected for larger-scale deployment in production as early as 2025, with wider industry applications from 2026.

• AI-Enhanced Tools: Even trades that remain human-centric will see their workflows augmented by AI. Electricians will need to understand smart grids, plumbers will use AI for predictive maintenance, and construction workers will leverage AI for precision measurements and project management. This means the skills required for blue-collar work are evolving rapidly.

• Efficiency Drives Cost-Cutting: Just like in the white-collar world, businesses employing blue-collar labor are under pressure to optimize. If a machine can do the work of three laborers for the cost of one, that's the direction companies will take. The "demand" for blue-collar workers with traditional skill sets may indeed decrease as automation fills the gap.

• The "Last Mile" Problem: While the most complex tasks remain human, the "easy" parts are ripe for automation. Long-haul trucking, certain delivery services, and warehouse operations are already seeing significant disruption from autonomous vehicles and robotic sorting systems.

The takeaway for blue-collar workers is the same as for white-collar: Adapt or risk obsolescence. The demand will shift towards those who can install, maintain, repair, and oversee these new automated systems, or those whose work involves truly complex, non-routine problem-solving and direct human connection that AI or robots cannot replicate. It's not about avoiding technology, but about leveraging it and positioning yourself at the top of the new value chain.

The Illusion of Progress: Why "Wage Growth" is a Distraction

Many will point to official statistics, showing seemingly positive wage growth, as a sign that the employee path isn't so dire. They'll tell you that your salary is "keeping up" or even "beating" inflation. But this narrative is a dangerous mirage. Take a look at the data below. While average weekly wages in April 2025 did grow by 4.1% compared to an inflation rate of 2.3%, seemingly a positive spread, but zoom out and look at the broader trend since 2008.

For the vast majority of employees, real wage growth has been agonizingly flat, barely treading water against rising costs, and often plunging into negative territory. This persistent struggle for the average worker to gain any significant ground, year after year, fundamentally proves our point: the W2 path, even with nominal "growth," is designed for stagnation, not true wealth accumulation. While you're celebrating a 1.8% real gain, asset owners are compounding wealth at multiples far beyond what any salary can offer.

The Path to Prosperity: Becoming an Owner or a Rainmaker

The next two decades will be a goldmine for those who understand where wealth will accrue. Forget relying on a salary; the future belongs to:

• Business Owners: Starting, buying, and selling businesses.

• Revenue Generators: Those who can consistently bring in significant revenue for a business (i.e., sales).

The core of any successful business is its ability to source and service leads. And the single most crucial question to ask yourself before starting any venture is: How will I consistently generate leads at an attractive cost? If you don't have a clear answer, your venture is doomed. Marketing, in this new era, is arguably ten times more important than the product itself.

This leads us to the four indispensable skills you must cultivate:

1. Knowing how to value a business.

2. Knowing how to buy, structure, and operate a business.

3. Marketing.

4. Sales.

Your career path, therefore, should be strategically chosen to master these skills, ultimately enabling you to launch or acquire your own business.

Recommended Career Paths for the Future Millionaire

Here are the career paths that offer the most direct routes to building substantial wealth:

1. Private Equity (Especially Real Estate Private Equity):

   • What it teaches you: The art of buying, improving, and selling businesses. This is arguably the highest-value skill set in the world, as enhancing an existing business is often far easier and more lucrative than building from scratch. You'll learn how to value, structure, and operate businesses from day one.

   • Why it's a top choice: The potential for immense wealth is unparalleled. A single successful deal can be life-changing. While barriers to entry are high (top universities, investment banking experience), it offers maximum optionality. You can always move downstream to other business ventures, but breaking into PE from other fields is extremely difficult.

   • The ultimate goal: Leverage this knowledge to acquire your own real estate or traditional businesses. For instance, real estate private equity allows for a more accessible entry into ownership.

2. Sales Roles Focused on Closing Cold Leads (e.g., Door-to-Door Sales):

   • What it teaches you: The holy grail of sales is how to convert prospects who have no prior knowledge of your business. This is the ultimate revenue-generating skill, demonstrating your ability to create value out of thin air.

   • Why it's powerful: You become the most valuable person in almost any company. While it lacks traditional prestige, it offers immediate, high earning potential ($300K+ within two years, $500K+ with a team). It has a low barrier to entry and doesn't require a specific pedigree.

   • The ultimate goal: Once you've mastered cold lead generation, transition into owning a home services business (e.g., solar, roofing, pest control). Plug in your sales expertise, and you're on a fast track to a multi-million dollar exit within five years.

3. Top-Down Lead Generation (Affiliate Marketing):

   • What it teaches you: How to generate leads and customers at scale through paid advertising (Facebook Ads, Google Ads, YouTube Ads) or organic strategies. This is pure marketing power.

   • Why it's a game-changer: Being able to consistently generate customers cheaper than anyone else gives you an insurmountable advantage. The earning potential is immense, and you can operate from anywhere in the world. You can easily start this alongside your current job.

   • The ultimate goal: Apply your lead generation prowess to your own business, whether it's an online venture or a traditional service business that needs a steady stream of clients.

4. Skill Sets You Can Build a Business Around:

   • What it teaches you: A specialized skill that can be directly sold to clients or forms the foundation of your own service business. Think accounting, legal services, or certain consulting roles.

   • Why it's a viable option: Unlike "plug-in-the-machine" corporate jobs, these skills can be monetized independently.

   • The caveat: These roles often don't teach you the other crucial business skills (valuation, operations, marketing, sales) from day one. You'll need to acquire those alongside building your business, increasing the risk. But if your goal is ownership, this is still vastly superior to being a mere employee.

The Jobs to Avoid at All Costs

Conversely, certain career paths are set for disaster:

• Middleman-Type Jobs (Brokers): Residential real estate, business brokerage, even certain investment banking roles will see their commissions compress to 1-2% or be cut out entirely due to the internet's efficiency. The only winners here will be the elite few who leverage massive social media distribution to maintain their value. If you're a broker without a significant online presence, you're certifiably insane.

• "Plug-in-the-Machine" Jobs: Any role specific to a large corporation with no transferable skills that can be independently sold to clients or used to build a business. If your job doesn't make you self-sufficient, leave immediately. These roles will be squeezed until nothing is left.

• High-Paid Tech Workers with Non-Transferable Skills: If your high salary is solely tied to a handful of "FANG-type" companies and your skills aren't easily transferable, you're on shaky ground. A job loss could mean a catastrophic 50%+ pay cut. Don't expose yourself to that risk.

The Crossroads: Owner vs. Employee

The next 20 years will either railroad you or make you wealthy beyond your wildest dreams. The choice is yours. The changes ahead overwhelmingly favor business owners. Cultivate the right skills, pursue the right careers, and own your future.

Those who see what's coming will make a killing. Those who don't will be crushed.

Now that we've talked about the forces dismantling the traditional employee path, AI, globalization, and the relentless financialization of everything. But there's a more insidious, often hidden hand at play: Private Equity.

Let's be clear: the meteoric rise of Private Equity (PE) isn't just an abstract financial trend; it's the fraud being pulled on all of us, systematically dismantling the traditional US job market and siphoning wealth from the many to the few. While some of the vitriol aimed at PE comes from disgruntled academics, much of it is entirely justified. This industry, built on a foundation of borrowed money and often opaque valuations, has pushed its model too far, and now, it faces a wild collapse – a collapse that, unfortunately, we, the ordinary people, will likely pay for.

Private equity is simply investing in assets not listed on public markets. For decades, it offered rich investors a seductive pitch: higher average returns than the stock market, less volatility, and "safer" money. They promised this by deploying "crack teams" to find, buy, and, here's the insidious part, extract as much money as physically possible from private companies. Sounds too good to be true? It is.

Here’s how this deception works, and why it's been so detrimental to you:

1. The Schrödinger's Cat of Returns: Opacity as a Weapon. Private companies don't have publicly updated stock prices. PE firms exploit this lack of transparency. Imagine putting a cat in a box with a 50% chance of poison. Unless you open the box, the cat is both alive and dead. PE managers apply this "logic" to your money: by not selling assets and limiting financial disclosures, they can simply claim higher valuations year after year. There's no instant market to call them out. This "marking to market" becomes a game, where underperformers are hidden, and only the highest-performing assets are sold to reinforce the illusion of steady, superior returns. We saw this with firms like EnCap, who valued an oil & gas investment at near original cost for years, only to mark it down to $0 and file for bankruptcy almost overnight. They're gambling with your money (often from public pensions!) while claiming steady growth, and when it goes south, they aren't the ones losing their jobs.

2. The Influx of Capital and the Ruining of a "Good Thing." Private equity used to be an elite, niche strategy, actually delivering market-beating returns. Warren Buffett's early success at Berkshire Hathaway even mirrored a PE approach. But like anything genuinely lucrative, it attracted a flood of capital. Since 2000, assets under management in private equity have exploded by 1,400%, with some strategies like growth equity seeing a staggering 10,000% increase in capital in just 24 years. This chart, if you know finance, screams "unsustainable bubble."

When everyone is trying to buy the same limited pool of private companies, acquisition prices skyrocket. What was once a $1.5 million business (generating $500k EBITDA, paid off in 3 years) becomes a $5 million bidding war. At that price, you're not beating the market anymore. This leads directly to the next point...

3. Leverage, Layoffs, and the Race to the Bottom. To maintain the illusion of superior returns in an over-saturated market, PE firms resort to extreme measures. They leverage up businesses with enormous debt – debt that becomes the target company's responsibility, not the PE firm's. And then, they engage in ruthless cost-cutting.

A report by the Private Equity Stakeholder Project found average job losses of 4.4% in the two years post-acquisition; a period when national unemployment actually fell by 4.5%. This isn't just about eliminating "redundancy"; it's about making the balance sheet look good for the next sale. This cutthroat approach doesn't stop at white-collar jobs; PE has drastically cut costs in critical sectors like nursing homes, preschools, hospitals, and even prisons. Studies from the National Bureau of Economic Research and investigative reports from major publications detail how this relentless push for lower expenses has directly led to tens of thousands of premature deaths among the country's most vulnerable. They are sacrificing human well-being for "carried interest" and multi-million dollar bonuses.

4. The Unintended Consequences: Housing, Healthcare, and Regulation. PE's unchecked growth and desperate search for returns have led them to new, destructive frontiers. No longer content with just corporate acquisitions, they are now targeting single-family homes, leveraging tax breaks to make housing an "attractive asset class." This is directly contributing to the unaffordability crisis facing young families.

The good news? This blatant disregard for social impact is finally attracting the attention of regulators. Congress is pushing to limit tax breaks on corporate home buying, and investigations are underway into PE ownership of hospitals and anti-competitive practices (But, the Fraudfather is not holding his breath). Though it is a sign that the very system they've exploited is starting to buckle under the weight of its own avarice.

For decades, private equity has operated in the shadows, delivering outsized returns by fundamentally changing the rules of business, often at the expense of employees and basic human dignity. Their model, built on leverage, opaque valuations, and relentless cost-cutting (including human capital), is collapsing under its own weight.

This is the harsh reality. But remember our mantra: if you can't beat them, copy their playbook. Understanding how they've systematically extracted wealth is your first step to building your own. You don't need a billion-dollar fund to operate like a shrewd investor. You just need the knowledge.