Don’t get caught in the justice trap

I enjoyed this post from David Henderson on EconLog about why businesses hire employees and that it is worthwhile to avoid the justice trap.

Henderson quotes good advice from Jeffrey Tucker:

Sincere apologies and genuine admissions of error and wrongdoing are the rarest things in this world. There is no point at all in demanding apologies or in becoming resentful when they fail to appear. Just move on. Neither should you expect to always be rewarded for being right. On the contrary, people will often resent you and try to take you down.

How do you deal with this problem? Don’t get frustrated. Don’t seek justice. Accept the reality for what it is. If a job isn’t working out, move on. If you get fired, don’t seek vengeance. Anger and resentment accomplish absolutely nothing. Keep your eye on the goal of personal and professional advancement, and think of anything that interrupts your path as a diversion and a distraction.

And perhaps a bit more powerful from Walter Oi regarding Japanese internment camps in World War II:

…the Japanese-Americans were treated unjustly, but that the best thing to do for them was to move on and not create a new government program.

I agree. It is very easy to get caught in the justice trap and dwell on how you have been wronged, but that isn’t the least bit productive. Get over it.

Crowd source venture capital, please

I read this Wall Street Journal story about a Silicon Valley startup, Loyal3, with great interest.  This paragraph describes its business model:

Loyal3 has created an online app that would let companies sell, or even give, shares of stock directly to the public, with no brokerage fees, through a website or on Facebook, in increments as small $10. Small investors wouldn’t even have to buy a whole share. Loyal3 would let them buy and sell fractions of a share.

I thought it might be a step toward crowd sourcing venture capital.  Prosper.com has made it possible to crowd source loans.  I think crowd sourcing startup equity investments would be another good idea.  Essentially, to have a Shark Tank that you don’t need to be a billionaire to participate in.

I’m no expert, but I believe SEC regulations do not make this easy, or maybe even possible, mainly to protect small, unsophisticated investors like myself from being bamboozled by snake oil salesmen.

As I read on in the Wall Street Journal article, I realized that Loyal3 wasn’t the Prosper.com of equity investing.  Rather, it’s a bit more like a Sharebuilder.com, looking to fill a specialty niche in the investing market for small investors and for companies wanting to give out stock as a marketing campaign. A while ago, I believe you could buy shares in beer maker, Sam Adams, from the boxes of its 12 packs. Loyal3 basically helps with that.

I wish we could crack the crowd sourced venture capital nut.  Given low-interest rates and equity investments that do not seem all that diversified anymore, it would be nice to have another market for our investments.

And, with lotteries and casinos where you are almost assured to blow your money, I don’t buy the argument that we need to be protected from snake oil salesmen.

We shouldn’t have to donate to create jobs either.

A crowd sourced venture capital market might produce a few jobs and a few products and services that make our lives better in the process, as well as give investors access to early stage, higher reward (and admittedly higher risk) investing.