Inspired by : http://www.blogger.com/comment.g?blogID=9430835&postID=6433970346816727800
jody said...
is there any serious discussion in the literature about whether the middle class is actually an aberration, that never existed in the past, and will not exist in the future? 50 years from now we may look back and realize it was an artifact of unique circumstances that existed for only 100 years.
I think most people take for granted the prosperity they currently enjoy.
Pain and suffering have been the mainstays of human existence for millennia. Through our efforts we have earned ourselves a brief respite, yet it's amazing how many - especially those who have known nothing else - feel entitled to this state of affairs.
It's been a mere two centuries since the onset of the Industrial Revolution. Bismarck's welfare state is but 140 years old. The United States is 237, Singapore a mere 48.
All of these are still works in progress. All of them could fail.
people better make their fortunes now, and i mean, right now, during the early 21st century currency and real estate bubbles. if you can get to 2 million or 3 million in fairly liquid assets, then you'll never have to work again, nor will your descendants, at least the first generation. your giant pile of money will be able to do all the work for you.
I realized this during my last year of college.
So while others were enjoying their 20s, I was building an asset base.
She's about 2 decades off though - it's a little late to join the party now. Gen X had the best shot at making this work.
One rule of thumb I've noticed: it takes two 'good' generations to make up for what was lost by one. This applies to nations and families both.
everybody else without a giant pile of money, and with average intelligence, will be screwed by 2020. it's back to serfdom for them, as they'll be unable to accumulate enough wealth to escape the dual trap of declining hourly wages and inflation. in many cities they will not even be able to afford to own property.
Realistically, 1 million dollars at 4% = an income of $40,000/year, in perpetuity. Net of inflation, naturally.
This is what I mean by destroying your childrens' opportunities through inaction. If you even manage to have any.
