RE: Is Passive Income Purely Passive?
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It takes a lot of work to earn passive income.
This type of classification tends to fall apart when one looks at reality.
One could define farming as passive income. I decided to choose farming because I know it involves a great deal of work.
The farmer doesn't actually create plants. Farmers simply drop seeds in soil. The plants do the actual work of growing. The farmer then harvests the crop after it has.
Okay the farmer has to do things like water the soil; pull weeds, chase off magpies and other things to assure the crop is a success.
But the actual production of food happens within the plant. It is not directly produced by the labor of the farmer.
If I put my mind to it, I could probably find a way to dismiss most of the work done in society as passive income.
!BEER
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Great contribution!
There's no income with zero-work. The work might not necessarily be hard labour; it could be you risking your money (Investing), supervision or follow up processes etc. Either way, there has to be some work to be done which in turn propels the earnings.
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I think there are two general principles at work. As you just said:
The second is that income never perfectly reflects the work involved.
Now, lets look at something like a fireman or a security guard. People in these positions spend most of their time on stand by.
There are a few times when they are engaged in extremely dangerous activities.
Attempts to create a dichotomy between passive and active income are bound to fail because this thing called "work" really isn't the foundation of the economy.
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In addition, income earned could be a reflection of one's skill set or the extent/quality of value/solution offered.
What then would you say is the foundation of economy?
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