Nobody really gets rich by playing the market. You get rich by working hard and/or starting your own business, and investing in a diversified portfolio of index funds and dividend paying blue chips.
Exxon is up 40% year-to-date (YTD), BP is up 20% YTD while SNP500 is up 12% YTD.
So I'm not even sure the premise of this tangent is correct; oil stocks aren't shown to be the recipient of the current price spike.
But it's not sustainable in the medium term.
You think this is the only basis of investment in a large fund? You think they don't make plays which respect this fact, in their risk profile?
Come on now
'Tax the Rich' politicians will never give you a number when you ask just who they are talking about. It has to be fluid. Bernie Sanders used to rail on millionaires until he became one. Now he only says billionaires.
I'm also poor relative to the to 0.1% of people, but I still make a ridiculous amount of money compared to the minimum wage worker. If were better able to provide for everyone by taxing me more then I'd be all for it.
i agree. "capitalist" is the word for what people really mean when they talk about "the rich"
Let’s also assume you save every penny, you don’t buy a single thing, from food to shelter.
Let’s assume that inflation is zero, and you work for 50 years at this level from 20 to 70.
You will have earned $22.5 million.
Not bad. Remember this is without spending a single cent.
Now how do you think you get to a net worth of $220m? Or $2200 million? By working ten or one hundred times harder
You don’t get rich from working hard. You get rich by being rich and letting it snowball. $40k a year in an 8% return for 50 years gets you about the same.
Which is rich.
Don't get me wrong. I would love to have that kind of money. I would retire immediately if that was in my bank account.
But we're comparing to people who have 100x that. Or nowadays apparently literal trillionaires.
Like there's rich and then there's rich
Keep in mind that the situation that the OP suggested is a sort of spherical cow. Substantially more people earn <40k per year than earn 450k per year. It is extremely unlikely to earn that kind of money over that kind of timeframe, nevermind being able to save every single cent of it
And there are people 1000 times richer.
The way to may 22m isn’t working this crazy way, it’s to invest in the stock market and try to have a larger slice of everyone else’s work.
Yeah, right
Depends on how you define "regular folk".
40% of American adults don't have any retirement savings account at all. And entirely unsurprisingly whether they do or not correlates extremely strongly with income/wealth.
So one could easily claim that the further from actual "regular folk" you are the more likely you are to benefit.
> 40% of American adults don't have any retirement savings account at all.
So, 60% have, 60% is more than half, so it takes the value of "regular folk". Ah, statistics.
Any definition of "regular folk" that excludes more than half the population is nonsense.
There is overlap, but there is also a large portion of regular people that do not hold stock in oil companies.
And going back to the original topic, these figures should help us realize two things that are both true:
1. a big part of the population is gaining from the gas price raising via funds growth.
2. a big part of the population, the one with less resources already, just pay the consequences of the gas raises because they don't own funds at all, so they cannot reap any growth there.