U.S. Billionaire Wealth Surged During the Pandemic
statista.com
statista.com
The worrying part to me of the overall economic situation is that the actions of the Federal Reserve seems to help the stock market much more than the real economy.
Between the Fed and Congress they deliberately pumped money into the market favoring top-down rather than bottom-up and large corporations over small to medium. Result? Stock market surge while millions (> 40 million?) remain unemployed and lines for free food grow all around the country. Why? Because let's say even if a large amount of pension funds are tied to the stock market that's of no benefit to someone suffering today through no fault of their own. And given that the top 11% (isn't it?) of Americans own 80% of stocks and I presume the tippy top of the 11% own a huge chunk of that in turn then hey presto it all looks a bit too much like a deliberate wealth transfer – crony capitalism taking advantage of a crisis as exhaustively documented by Naomi Klein in Shock Doctrine.
Far from being misleading, these statistics reveal what we all know. The US has turned into a virtual oligarchic kleptocracy.
It is a shame that so many people are not financially educated enough to take advantage of moments like this in history. A financial crisis is a time when fortunes are made, and if you properly navigate each one throughout your life you can give yourself a major step up in networth.
The shame is not that people don't have financial literacy.
For the vast majority of people the problem is lack of access to capital to invest, not education on how to invest.
I know a lot of blue collar workers, restaurant workers, farmers, truck drivers... their concerns during the pandemic is “how am I going to pay my rent / mortgage / medical / credit card bills next month”... investing in the stock market is not on their radar:
For the upper middle / upper class who do have extra cash to play with, it’s important to realize these specific market conditions are rare and unpredictable (it’s still possible for there to be another major sell off, just because we’re up doesn’t been we’ll stay up). It’s easy to look back and say “oh I could have made 40% in 3 months” after it happened. Yet many of the best money managers missed most of the upswing because no one was expecting a V shape recovery so quickly.
To build wealth, don’t try to time markets or pull crazy stunts like outing cheap OTM options. Just invest a steady percent of your income in index funds every month over a long period of time.
Consider that many suffer from all manners of adversity that are tough to overcome: ill health, bad fortune, financial setbacks, lack of inherited wealth, and so on.
Look around you – becoming successful is like walking on a tightrope, a series of little nudges can easily knock you off and you may never get back up.
Your bio does say "Ethically challenged software engineer working for a major tech company" ! :)
Easy to get the idea that a statue of Lincoln got torn down because protestors are historically illiterate, or there's fascist spoilers in among the crowds, or whatever. No. There are no wrong statues to tear down, because who put those statues up? Rich people. Old people. People who've failed to justify their hold on power. I don't think it's quite too late for them to start to do so. But I do think they're far too stupid to realize and act on the necessity.
Being as the only reason I'm not getting fucked the same way - not quite so hard, at the moment, anyway - is the luck of having had 20 more years to work with and a chance to make a start in a somewhat less viciously extractive time, my sympathies lie with those who say that either that power will be justified or it will be taken from those who have it now and placed in other hands.
Sure, things could end up worse than they are now. But they could also end up better. If anyone could make a convincing case for how they end up better under the status quo, we would not be here. Hell, Bernie Sanders tried twice, and look what happened to him - not that I think he'd have been able to deliver on his promises, but it would've been smart to have given him the chance to try. Could probably have bought a decade or so that way, I suspect, maybe more. But instead, in 2016 the DNC rigged the primary for a candidate decades past electability who ultimately gave us Trump, and in 2020 the boomers just stomped the babies flat and gave us another possibly senile neoliberal has-been for the general, which he may still contrive to lose despite the Republican revolt against Trump - they've made a lot of ads, but we won't really know how it played out until December or maybe January, and no matter which way it goes it'll be the most questionable US presidential election result in living memory. Maybe ever. Even the AOC/Ilhan Omar crew, the best hope of a better future the status quo ante has so far managed to ante up, has started to get some real side-eye: they still have a solid Twitter game, but in policy terms they're moving toward the center, and people have started to suspect, I think rightly, that DC's capturing them. At this point there is basically no credibility left.
So it depends on who manages to direct the energy to make some kind of change. We haven't seen them emerge yet. If history is any guide, we won't see them coming, either. How it plays out in the long run is anyone's guess. How it starts is in large part up to them, whoever they turn out to be.
I'll never forget when I was told by one person, "if people are mad that companies are making all this money they should just buy their stock!" Let them eat cake if there ever was a parallel...
Unfortunately that’s not really true and they find they wasted a lot of time and money and have no prospects and mounting debt.
After person spends 12 years in the public schooling system being educated and after tax payers have invested hundreds of thousands into that person the result should produce a functional adult capable of filling more than 50% if not closer to 70% of middle class jobs in a given nation.
Instead for the last 30+ years we have pushed more and more jobs out of reach for a person with a standard public education largely do to decreasing standards in that public education combined with the self reinforcing feedback loop up university funding.
This is the true cause of the erosion of the middle class that is perceived to be happening. 20-30 years ago most jobs on the market did not have a degree requirement, and there were many middle class jobs that people with out degree's could fill. As we pushed the jobs more and more to have a degree (any degree not even a degree in the field just any random degree will do), with it means many people are starting their adult life in massive debt, where before the it would have been a home, or something like that.
If we want to fix the nation, the solution is not free College for everyone (like many young people and social democrats want to propose) the solution is to make a standard K-12 Education applicable again for most middle class jobs
Interesting thing is, a bachelor's degree in Europe is basically that advanced K-12 you're suggesting. The main difference is that it's way cheaper, and occasionally faster (2-3 year programmes are not rare, certain countries have a degree between high school and research universities).
Now, if you graduate from a decent college and don’t get to “work for a FAANG” and start off making six figures your life is over as far as they are concerned. Take a peek over at r/cscareerquestions
Also, it's not just young people. If you tell someone ignoring the age that you are a plumber or farmer, they aren't going to look at you nicely even if you earn more than the engineer next door. Social media has changed perception of people regarding work. It is a primary means of keeping up with the world for younger gen and targeted advertisements make it worse. Instagram feeds have a happy skin-showing bias. Tiktok removes anything too sad or ugly.
I expressed in my earlier comment that expectations for young people now are different. They think they should be able to live better than their parents do now or did on the same folds the productivity has increased.
Compare 2000 to now and how work has been automated or made easier. Why not 5x-10x improvement in the living condition? That is why they want to get into FAANG.
Just look at the two emphasized parts of your statement.
There is no statistical evidence that young people are buying RVs to live in and not just recreationally.
This is mostly a puff piece, but it is saying that young people are buying smaller RVs and older people are making it more of a lifestyle.
https://www.curbed.com/2019/5/31/18636155/rv-camper-millenni...
As far as farming, the article is trying to tell a narrative, but it’s own citations don’t back it up.
https://www.washingtonpost.com/business/economy/a-growing-nu...
The number of young farmers entering the field is nowhere near enough to replace the number exiting, according to the USDA: Between 2007 and 2012, agriculture gained 2,384 farmers between ages 25 and 34 — and lost nearly 100,000 between 45 and 54.
“Everyone has a boss”.
It's not about money though. The motivations are to get away from money actually, and to just have your needs met. You can eat like a king for a month just from a single pig slaughter.
The millionaire asked the fisherman why didn’t he buy more boats so he could become rich?
The fisherman asked the millionaire why would he want to do that?
The millionaire said so the fisherman can work hard and retire to an island and have a relaxing life....
They see it and they're calling bullshit, as yet not in a very coordinated way, but calling bullshit still.
I suspect that this is like the “no one use Facebook anymore” meme where statistics show otherwise.
Are you working in a technology related field? If so, probably a number of the 70-80% of the people who make less than you do probably think you make too much.
I mean, I don't know how to explain to you that you should care about other people, and here's pretty much where I give up trying. But in a time when more and more people are saying that all the old advice on how to build a good life in America has stopped working and they can find nothing left for them but to barely scrape by or just outright fail entirely, you should maybe consider the possibility that they are not wrong about that. You probably won't. But you should.
BTW, I graduated 24 years ago from a state college and stayed at home. My total college cost was less than $10 grand.
Of course my living cost were subsidized. But how many students think they are too good to go to a local state school or go to a two year program locally and then transfer?
The same school I went to is now about $7K year including books. If you live in the state and graduate with at least a 3.0, that costs goes down by 80% automatically because you qualify for a state (lottery) sponsored scholarship.
Yes a better college can get you more connections. But if I could get noticed in the mid 90s by uploading my own freeware via ftp to the info-Mac archives, how hard would it be today?
I don't know anything about what it's like to be young and trying to make a start today, either, because I haven't done it. Neither have you. So I don't really see much reason to weight your totally unsupported, entirely anecdotal just-so story, about how all the kids today want is to get rich in five minutes, more heavily than I weight the things people actually living in that situation say about what it's like. They at least have a firsthand perspective to speak from, which is more than what you do.
I don't know. Maybe spend less time on Reddit? Or consider that like, it's not the 90s any more and you need to market the hell out of yourself to get noticed from scratch at all? I mean, my first post-apprenticeship job I got 100% thanks to connections of the sort that a random kid at a random state or community school would never get the chance to make. Since then I've leaned on third-party recruiters which, again, how do you even do that if you aren't in a city big enough to have a real industry scene? And how do you afford to live in a city like that, these days, if you aren't already making tech money?
The ladder I climbed isn't there any more. I know you want to believe the ladder you climbed still is. But have you checked any time lately?
You bought up student loan debt.
But, sure, tell me again about all the Reddit posts you read.
You might have better luck arguing that your anecdotes outweigh mine. That way, you at least wouldn't be making yourself look like a hypocrite.
It's not that I mind an anecdotal discussion. Most people live anecdotal lives in an anecdotal world, and that's very easy to lose track of when you try to reason out everything from first principles and raw data. For one thing, it's very easy to assume that a given number has weight independent of its sources or its context, as you seem to have done throughout this conversation. But of greater import is the ease with which one loses track of the fact that these matters, which we so easily discuss entirely in the abstract, determine the course of real people's real lives, and those lives are of greater import than any conclusions we might find comfortable to draw in an environment of security and comfort.
If you're not comfortable with an anecdotal discussion, that's fine too; as my rather longer comment in the other subthread demonstrates, I'm as willing to engage on that field as on this one - especially with an interlocutor who does such a poor job supporting his claims, having apparently chosen a few sources which even then only support his arguments if they're not examined in the slightest degree. But if you're going to claim that anecdotal commentary is a problem when I engage in it, I'd expect to see some behavior on your part other than yourself engaging in it, too.
And if it does - well, what the hell? Those people you cite are correct. I do make too much, and so do you. Even an ex-tech-industry billionaire will tell you that, or did you think it was by accident that people feel the need to worry their jobs will get exported to India or somewhere? I know I'm not going to make any friends talking about a salary bubble in tech, but we all know - or we better know - there is one, and sooner or later something is going to pop it.
Just like becoming a billionaire seems unattainable to you, someone living in the MiddleOfNowhere Omaha probably doesn’t see a way to make $200K in a year that a CS grad working on the west coast can obtain within two years.
When they are talking about “taxing the rich”, it’s going to come as a surprise to a lot of the techie liberals that “they” are talking about them and not just the billionaires.
It seems like there's an implicit claim here, with which you expect me to implicitly agree, that such taxation would be unjust. The thing is that I don't agree. If you'd like me to, you need to convince me. As long as you don't, I'm going to keep calling out that assumption for what it is, and asking how you justify it.
Yes I now work for $BigTech and make somewhere around the salary of an SDE2. But I work remotely in the burbs of a relatively low cost of living area. I can take a hit.
But how will people feel making the same salary and living on the west coast? A lot of them think they are “barely middle class” because they can’t afford to send Timmy to a private school, have the house, max out their 401K and save for their son to go to a top ten college?
Even leaving aside the moral repugnance of making it structurally impossible for almost all young people to build lives in this country, so that a few who already have much more than they need can go on accumulating more still - from a purely utilitarian perspective, in what way does this lend itself to building a strong, stable country, one that isn't both constantly riven with internal strife driven by the results of generational wealth extraction, and ultimately unable to sustain itself because it can't develop enough talent to compete at global scale?
The pie is not static. How many jobs have the five biggest tech companies created either directly or indirectly?
The average starting salary of a college grad is $51K (https://www.shrm.org/resourcesandtools/hr-topics/compensatio...). Knowing that, the emphasis should be on teaching students not to get tens of thousands in debt to get a degree in Ancient Chinese Art History.
I know a lot of people who bought into that, got the credential, and are now learning it isn't worth what they were promised it would be. They're furious, and why shouldn't they be? They didn't expect to find they had been lied to, and they're still holding the bag.
I also know a lot of people who either didn't buy into that, or couldn't, because they weren't born into a situation where even as bad an option as mortgaging their future was available. They don't see any better hope in the "economic system" than to spend their whole lives working three shit jobs, never having time to breathe, and never having even the basic level of "I won't be homeless in a month even if I lose my income today" security that you and I have, and you probably take for granted. (I don't; I've been close enough to homelessness to know better.) Those people are furious, too, and why shouldn't they be?
It's not just the West Coast, either, and it's not just tech. I live in Baltimore, and housing prices in this town have more than doubled in the last twenty years, most of the increase occurring in the last ten. As I alluded to before, I've been fortunate enough to stay ahead of that. Most people aren't. And no one should need to be lucky to have a reliable, healthy place to live.
It's not just the single dimensionless number you cite, either. That doesn't account for regional differences in starting pay, or how your imaginary Omaha kid can't expect to make that kind of money starting out. It doesn't account for how that kind of money barely affords a one-bedroom apartment in my own town, to say nothing of in an actual center of the tech industry. And it doesn't account for all the new college grads for whom that number is meaningless anyway, because they can't get a job at all. The article you linked makes mention of that, but you don't. Why is that?
And it's not just about "job creation". Uber alone could be said to have created tens of thousands of jobs, but that, again, is a dimensionless number that explains nothing. Are those jobs worth having? Do they pay enough to deserve counting one-for-one with others? Hell, given the effort and expense Uber goes to to avoid being required to treat its employees as employees, do those deserve to be counted as jobs at all? And where in the tech industry does anyone deserve more favorable consideration? Amazon, another leading light in this sort of discussion, only gives a damn if its warehouse workers live or die inasmuch as it affects DH production targets. If this is the best we can do, we should at least have enough of a sense of shame not to big ourselves up as "job creators". But maybe you'd like to demonstrate, with cited examples, that we predominantly do better. That's what you seem to want to argue, so, okay, argue it.
I mean, I get that you want to blame all these people for the shitty situation they've found themselves in, but what I don't get is why. Why do you want to make it their fault? It doesn't take much benefit of the doubt to assume that they're no more foolish and no more stupid than you and I were when we were young, and that they can't make it the way we did is for some reason other than their own incompetence. But you won't give them that benefit of the doubt. Why not?
That isn't a rhetorical question, either. I really want an answer, because I really don't understand where you're coming from with this stuff. Like, when we were kids the joke was about "underwater basket-weaving", now you're making it about ancient Chinese art history, but it's still basically the same joke, and it already wasn't a good joke even when it still had the virtue of novelty.
So, what? Is it that you think nothing has changed in the decades between our own youth and today? I have a hard time imagining anyone could actually think that, but you're not really giving me a lot to work with here. Will you please explain your thinking, so I can at least understand where you're coming from on this?
“teach yourself to code” is about not going to college to learn how to code. It says that right there on the tin. You don’t have to get tens of thousands worth of debt. Go to a local state school.
I also know a lot of people who either didn't buy into that, or couldn't, because they weren't born into a situation where even as bad an option as mortgaging their future was available. They don't see any better hope in the "economic system" than to spend their whole lives working three shit jobs, never having time to breathe, and never having even the basic level of "I won't be homeless in a month even if I lose my income today" security that you and I have, and you probably take for granted. (I don't; I've been close enough to homelessness to know better.) Those people are furious, too, and why shouldn't they be?
Name a scenario where someone can’t go to some college somewhere because of affordability between government grants and loans?
It's not just the West Coast, either, and it's not just tech. I live in Baltimore, and housing prices in this town have more than doubled in the last twenty years, most of the increase occurring in the last ten. As I alluded to before, I've been fortunate enough to stay ahead of that. Most people aren't. And no one should need to be lucky to have a reliable, healthy place to live.
The home ownership rate in the US is 65% (https://www.census.gov/housing/hvs/files/currenthvspress.pdf). The majority of Americans are homeowners.
There are around 600K homeless in America out of 300 million people. (https://endhomelessness.org/homelessness-in-america/homeless...). I’m not saying homelessness isn’t a problem but let’s not over exaggerate when we have statistics.
That doesn't account for regional differences in starting pay, or how your imaginary Omaha kid can't expect to make that kind of money starting out
Let’s take Omaha Nebraska. 65% homeownership rate.
https://www.rentcafe.com/average-rent-market-trends/us/ne/om...
You can also find a cheap one bedroom there for less than $600
https://www.rentcafe.com/cheap-apartments-for-rent/us/ne/oma...
Going by the 30% rule of thumb, that should be affordable by someone making $24K a year. Yeah that’s about how much I was paying when I was making that much.
I mean, I get that you want to blame all these people for the shitty situation they've found themselves in, but what I don't get is why. Why do you want to make it their fault? It doesn't take much benefit of the doubt to assume that they're no more foolish and no more stupid than you and I were when we were young
Unless you are emancipated, you can’t sign up for FAFSA unless your legal guardian sign with you. Yes I was dumb, that’s what adults are for. I told my son that he would have to go to a two year college at first and then he could transfer to a four year local college and stay at home. I also told him that we wouldn’t pay for a degree where the return wasn’t worth it.
Like, when we were kids the joke was about "underwater basket-weaving", now you're making it about ancient Chinese art history, but it's still basically the same joke, and it already wasn't a good joke even when it still had the virtue of novelty.
It’s not a joke. It’s the job of parents to help their children make good decisions. We have the internet now. It’s not hard to research potential salaries based on major.
So, what? Is it that you think nothing has changed in the decades between our own youth and today? I have a hard time imagining anyone could actually think that, but you're not really giving me a lot to work with here. Will you please explain your thinking, so I can at least understand where you're coming from on this?
Yes things have changed. I have children that I have had to guide through the process. It’s called being a responsible adult as a parent.
Second, I didn't say "teach yourself to code", because that isn't what has largely been pushed. Yes, if you're plugged into the tech industry zeitgeist, that's what you tend to hear. But most people aren't, and the people who have primarily been targeted by the "learn to code" marketing extremely aren't. Mostly they've been targeted by bootcamps selling snake oil and pricing it as if it were gold. Even TechCrunch sees this, and has seen it for years. [2] Why don't you see it now?
Third, you're talking out both sides of your mouth when it comes to affordability. You ask me to cite a situation in which someone can't afford to go to college based on grants and loans et cetera, and then you spend a lot of time talking about how it takes a lot of parental support to get access to those programs. As you accurately note, you can't sign on your own for grants or loans; you need a parent to do it for you, or you need to be emancipated, which is itself a complex and often quite expensive process.
It's nice to assume, based anecdotally on the circumstances of your own life, that everyone trying to make a start in life has parents with the requisite knowledge, free time, and goodwill to provide this kind of support. Unfortunately, that assumption isn't very well borne out by reality. A lot of potentially eligible students don't understand the process well enough to get through it [3], and if you don't have the good luck to be white, your odds get a lot worse. [also 3]
Beyond that, FAFSA application rates appear to have dropped significantly [4, "2017-18 Application Cycle"], well before the additional decline in both new applications [5] and renewals [6] apparently caused by the COVID-19 pandemic - both of which also appear to affect primarily students from low-income families, who are most in need of aid. And, in general, the complexity and difficulty of applying for federal student aid, and the consequent difficulty of getting the benefits you so casually assume based on personal experience must be equally available to everyone regardless of circumstance, is well acknowledged in the academic industry and has been for quite some time. [7], [8]
All of that is before we even start to get to the question of whether, and which, college degrees have value as job-getting credentials. You haven't shown anything to suggest I'm wrong in saying, or that the people I'm hearing it from are wrong in saying, that that credential doesn't have the same value it once did. Certainly in the present moment it doesn't seem to be doing a lot of good [9].
Even before COVID-19, the chances for a fresh college grad looked less than rosy, and those numbers probably don't mean a hell of a lot in light of the pandemic, when there's suddenly a glut in the job market of people who already have, not only training, but also the kind of experience that employers preferentially look for. It'd surprise me very much if we didn't, over the next few months to a couple of years, see those people tend much more to get hired back, than see people who as yet have no job experience get hired to fill the roles that do open up. And it would surprise me very much if we don't also see fewer roles open back up, even by comparison with the situation before the pandemic.
And, although I'm aware I risk cliché by saying it, the pandemic changes everything. We're probably all tired of hearing that said, but that doesn't give us a free pass to ignore its effects on our economy, and on the prospects of people who have to start out making their lives in a post-COVID world. (Not that we're anywhere near a post-COVID world here in the US, judging by the latest case rates.) Making favorable assumptions based on last year's situation is dangerously likely to lead to massive error, the way things have gone, to say nothing of making favorable assumptions based on situations a quarter century gone.
Unfortunately, you don't seem to have changed your perspective at all, whether because of the pandemic or for any other reason. You're still doing what you started out doing, namely, blaming young people today for failures that they haven't committed and that are not their fault. Asked to explain yourself, you've narrowed your focus to implicitly blaming young people who fail to launch today for the failures of their parents, in being unable or unwilling to provide the massive amount of support required to ensure they get a good start, from federal aid to college choice to guidance on how to make a reasonably remunerative career.
And that's something I do know a fair bit about, albeit not quite firsthand. As I mentioned, I didn't go to college myself, but I came up among a cohort many of whom did, and I saw how it consumed much of their, and their parents', time and effort during our senior year of high school. And that's for people who already know how to do it - and, on top of that, in a school that at least tried to do a halfway decent job of providing career counseling and support, which isn't something that can be expected of a lot of schools today. [10] dates from 2015, the most recent I could find - what do you have to show that situation has improved at all since then? What do you have to show that any of this has improved since then, or that it will do so in the wake of the worst economic injury our country has suffered within living memory?
I have to admit, I appreciate the effort you've put in to try to clarify your position here. I wish I could say I was less disappointed in the result.
[1] https://www.jchs.harvard.edu/sites/default/files/ahr2011-3-d...
[2] https://techcrunch.com/2016/05/10/please-dont-learn-to-code/
[3] https://blogs.edweek.org/edweek/high_school_and_beyond/2018/...
[4] https://studentaid.gov/data-center/student/application-volum...
[5] https://www.nasfaa.org/news-item/21414/Decline_in_FAFSA_Comp...
[6] https://www.insidehighered.com/quicktakes/2020/05/07/steep-d...
[7] https://www.ncan.org/page/fixfafsa
[8] https://www.insidehighered.com/views/2019/01/08/hidden-fafsa...
[9] https://fred.stlouisfed.org/release/tables?rid=50&eid=48713&...
[10] http://themoriahgroup.com/wp-content/uploads/2018/05/College...
If you are young and single, it’s dumb to buy a home. You limit your mobility and optionality to move to where the jobs are.
You ask me to cite a situation in which someone can't afford to go to college based on grants and loans et cetera, and then you spend a lot of time talking about how it takes a lot of parental support to get access to those programs.
Have you filled out a FAFSA recently? The only support it takes from parents is filling out their tax information. It’s pushed by every school counselor.
You're still doing what you started out doing, namely, blaming young people today for failures that they haven't committed and that are not their fault
I’m blaming parents. And what massive amounts of support? Filling out a form and actually doing research? The FAFSA process goes out of its way to inform parents.
And that's something I do know a fair bit about, albeit not quite firsthand. As I mentioned, I didn't go to college myself, but I came up among a cohort many of whom did
So you didn’t go to college yourself nor have you recently gone through the process as a parent recently. I have gone through the process as a parent within the last four years.
Everything is crazy now with Covid, we are giving our younger son a year off. But we will be doing the song and dance again.
What do you propose the government do differently?
If you are young and single, it’s dumb to buy a home.
Yes, I'd agree. So why'd you bring up homeownership as though it mattered? I mean, you did that, and I took it on faith that you had some kind of point to make with that, and I examined it on that basis. Now you're saying you had no point in bringing it up in the first place. So, why did you?
I’m blaming parents.
Are you, though? You haven't explicitly assigned blame to anyone until now, and it's interesting to me that you've waited so long. It's also interesting that you didn't do that in all the time you spent talking about people's Reddit posts about how they feel like they've been screwed and they don't know what to do about it. You seemed very happy then with whatever assumption people made, and you didn't see a need to get specific until somebody gave you real pushback. Why is that?
What do you propose the government do differently?
Solve the problem? Do the job its members, official and otherwise, are collectively paid, forcibly and with remarkable exorbitance, to do? I mean, you're asking a software engineer a question that's far outside his competence, and unlike some, I have the good sense to know it's a question I'm not able to answer in detail. One wonders why you'd ask such a person such a question at all.
But I also know there are people whose profession it is to be able to answer that kind of question. Quite a lot of them, actually, between government service proper, the similarly vast NGO industry, and various policy posts in industries other than that one. If you want a detailed answer for how a problem like this gets solved, ask some of those experts, and I'm sure they'll be able to provide. But I don't have to be one of those experts to recognize that a problem exists and badly needs solving.
Anyway, isn't all of this, that a government exists to identify and solve this sort of problem in order to maintain a stable, livable society for everyone, more or less the basic deal implicit in a phrase like "deriving their just powers from the consent of the governed"? I don't know, that's just something I remember hearing once somewhere. It's probably not very important.
Unless you are emancipated, you can’t sign up for FAFSA unless your legal guardian sign with you. Yes I was dumb, that’s what adults are for.
I’ve been talking about home ownership and renting since the very beginning.
I’ve also spoken about the other alternative - staying with your parents as part of a multigenerational home until you can afford to move out like much of the rest of the world.
I’m a software engineer. But, I’m also a parent. It’s my responsibility to be informed and give my children advice.
Were my parents better informed than average - especially my mom who was teacher at the time and helped plenty of low income and minority students work their way through the school system - yes. No, this isn’t a “white savior complex”. My mom is Black.
Were her parents who didn’t have even a high school education and grew up in the segregated south “privileged”. Heck no, out of their five kids, two went to college and became teachers, one became a nurse, and one has owned his own car repair shop for over 30 years.
Myself, I went to a local state college that no one had ever heard of and within three years I was making the same amount as people who graduated from college with tens of thousands in debt.
It’s not the government’s job to help young people make good decisions - it’s the parents.
I try explaining non-liquid assets and how selling all of that stock would change control structures and sink the stock price, but it doesn't resonate.
A lot of them also hate the stock market outright and don't know (or care) that stocks comprise retirement funds.
Future generations will be burned once they realise living like the baby boomers did is unsustainable, hence a lot of us have given up on the economy, whatever that means.
Please view your own pessimism with a bit of skepticism. Pessimism tends to betray people who buy into it too much.
I heard very similar things 30 years ago when I was <25 and in part I bought into it. And buying into it did me damage because none of it came to pass. Society continued to muddled along.
It's possible that the system will suffer a disorderly collapse, or maybe it will be uprooted and replaced with something more progressive. Just don't bet your future on either outcome.
I try not to come across that way.
Young people are correct to outright reject this. We’re kicking the can down the road so that boomers can have one last hurrah.
The more I learn about the financial system and how it works with government, the more I have become convinced that the whole thing is a scam, robbing the working class in a way that only benefits the very wealthy.
QE can be thought of as a tool to accelerate the wealth transfer from poor to rich. Every time we go through one of these cycles the whole thing speeds up.
Additionally, I think we should reconsider the idea of making it easy to acquire debt. An economy based on debt serves only to inflate assets that are easy to acquire debt for (i.e., houses) and prices out everyone who isn't in a position to acquire debt (which is a huge number of people, mostly young and poor people, including myself).
The debt thing to me seems like a "band aid" on keeping consumption going. If people have no meaningful money saved, then to keep consumption going cheap credit needs to be made available.
This is no true. It’s QE is funded by other rich people who buy bonds. If we do pay off the debt, again it will be rich people paying it off. The top 10% pay 70% of federal taxes.
Also, the megarich don’t lose much when the stock market collapses. Even if they lose 90%, of their wealth, they’ll live comfortably. Meanwhile, millions of working class people will lose their jobs because companies run out of credit to pay them.
The fed now buying junk bonds - directly propping up the LBO/PE industry - crossed a fundamental line for me. Not only is the USG propping up its productive corporations - not great, but excusable, in my view - now it's propping up its worst, too. Why is it doing that? Who is in charge and who are they obeying? Uncomfortable questions all around.
When the USD loses its reserve status - when, not if, and all the sooner given the fed's recent behaviour - we are going to see some serious shit.
Anyone else seen this?
In all fairness, there are just so many people without STEM degrees thinking that they will make 200k a year (in Europe). I'm not saying they can't, but it's honest to God very, very rare, and very, very difficult in their current understanding of labour markets, finance, and investment.
However, I would like to say also that I don't think this is a new phenomenon. I also know an even greater amount of older adults who are fooling, instead of educating, themselves.
I have long been a critic of of the public education system in the US for its failing to teach basic financial literacy in high school. I would be in a much better position today if I would not have screwed up my early 20's due to my ignorance on those topics.
I guess I should have not isolated "young people" more said there is a generally lack of economic education in wider population.
My parents who are just now retiring, bought into the US SocSec promise, so they had every little savings... Now me and my siblings are supporting them as we are more economically secure (and more economically successful).
On the other hand, the Occupy movement appeared and vanished after the 2008 financial crisis without really leaving lasting traces. We've yet to see what post-COVID politics looks like; the US is bracing for the November election, and the UK facing the end of the Brexit transitional arrangements.
An entire generation of young people is going to have a disruption "fossil layer" across their education. If this isn't taken into account and employers expect business as usual, they are going to be really unimpressed.
I support equal opportunity rather than bandids. The system is rigged and harm some people more than others. We need to find the core problems and fix them but I have no political power. By the time I do, I may become a grumpy old man who thinks people deserve what they got and it's their fault. Education system normalize this. Punishments are applied fairly but students are not equal and don't have the same situation at home or outside school. We need to stop punishing people in ways that only drag them behind. Be it students or petty criminals. Dragging people behind is never a good way to achieve progress and our society is riddled with it. Living is a zero-sum game for many.
IMO it's time to rethink the financial system (and I'm a strong proponent of UBI as a way to redistribute wealth). Just because it's been done a certain way for decades doesn't mean it should continue to operate that way.
The financial system as we know it today was designed in an era where information did not flow freely, and we did not walk around with an internet connected computer in our pockets.
There are people, like Warren Buffet, who do very well riding these waves. What I find weird is that some of them are revered on HN.
So, naturally, people admire those rags to riches stories.
For the record, I'm not against people trying to get rich, but I really dislike the fact that so many people try and pretend it's about something other than getting money.
Being a VC is not a charity, it's literally about growing an investment. Starting a company is not about charity, it's about generating revenue and ROI.
He loves to blast the system for which he profits from greatly. That seems to be name of the game today...
If you find something unethical, even if it is legal, you are still an unethical ass if you exploit that legality for your own gain.
https://dqydj.com/average-median-top-household-income-percen...
How many are advocating increasing taxes of people making above 200K (putting them in the highest decile)? How many admits that they have benefited from equality between their chase to “work for a FAANG” or get rich from exit?
https://marginalrevolution.com/marginalrevolution/2018/01/lo...
It's a mistake to look at per-firm performance. To a large extent, the wealthy are cooperative rather than competitive with each other and collaborate on class interests. The goal is to protect their collective power. They often know each other personally, went to the same schools, sit on each other's boards of directors, and bail each other out when things go pear shaped.
Either way, we don't need some marginal or even non-marginal improvement in the tax code. We need genuine, honest-to-god inventions moving the world forward.
Meanwhile, we're inventing fewer drugs and they cost more, more and more people in the academia are making slower and slower progress, tens of thousands of programmers are making slightly better IRC, USENET or Jabber programs. Trends that can't continue, won't.
Billionaires and millionaires speak with presidents all the time and develop strategies publicly with them, it's foolish to think this has no effect on the structure of the capitalistic system at all.