There has been extensive talk about how social security systems around the globe are having issues due to declining birth rates as well as a decline in the quality of employment for younger generations.
But another less often talked about issue is that almost nobody is able to make savings anymore.
Think about it. We all know at least some boomers. Most of them bought a car in their teens, a house in their thirties, went on frequent vacations and still even with all that were saving money beyond just for retirement savings.
Since that time, wage growth had stagnated, house prices have skyrocketed, and the purchasing power of the average salary has been going down.
So aside of the social security bubble potentially bursting in the future, there's also a bigger underlying issue.
Purchasing power has only been getting worse from generation to generation, and thus being able to make any savings is already a distant dream for most. Younger people just keep working more for less, to s point now where mostworking people can't put even a single dollar aside.
Could there be a solution for these issues? Economists have long argued about the strengths and failures of our economic system, but alas it appears as though "trickle down economics" has failed humanity.
So, do you agree that radical changes are needed?
But another less often talked about issue is that almost nobody is able to make savings anymore.
Think about it. We all know at least some boomers. Most of them bought a car in their teens, a house in their thirties, went on frequent vacations and still even with all that were saving money beyond just for retirement savings.
Since that time, wage growth had stagnated, house prices have skyrocketed, and the purchasing power of the average salary has been going down.
So aside of the social security bubble potentially bursting in the future, there's also a bigger underlying issue.
Purchasing power has only been getting worse from generation to generation, and thus being able to make any savings is already a distant dream for most. Younger people just keep working more for less, to s point now where mostworking people can't put even a single dollar aside.
Could there be a solution for these issues? Economists have long argued about the strengths and failures of our economic system, but alas it appears as though "trickle down economics" has failed humanity.
So, do you agree that radical changes are needed?
Decling birth rates are a great thing for this planet and no one will ever be able to convince me otherwise. That's also not the issues with SS. The issue is corruption. The government doesn't handle money properly (any government, all governments..take your pick). They all lie about everything, spend money on shit needlessly and worst of all, the killer of all..WAR. Imagine what we could do as a world if we stopped fucking fighting. I also wish most people knew it's our gov's not the people behind this crap. As an American I always remind my foreign buddies that I hate my gov probably more than they do, and that I want nothing but peace. The US spends more on it's military each year than the rest of the world combined. That is so ass backwards it sickens me to even think about.
For the rest of the world, I feel that too much socialism is the problem. Also the whole buying a home thing is more so a problem of big corporations and foreign nations buying homes and becoming slum lords. Driving prices up on rent as well as making the buyers market a disaster. It's really sad the way things have been headed. However most of my friends, with good, medium and okay jobs are still finding ways to buy homes. So it's not as bad as some make it out to be.
I encourage my clients to invest as if SS wont be there. I actually have a friend coming over shortly to help set up a portfolio for her, and will be echoing this same thing to her tonight.