First, one might assume that the way for a country to get out of debt would be to decrease spending. But governments are not households and some of the spending can be directed towards investing in its people.
US productivity has doubled since 1971 but real wages have not kept up. Health care costs aside, wages actually only went up by 4%. So while not everyone is more productive, many of those who work in the service industry are truly the support personnel for those who are. The statistics clearly show that a small % are profiting from this increased productivity while arguing against a raise in the minimum wage. We buy that argument because again conventional wisdom suggests that doing so will kill jobs but is that true?
The book, "Rich Dad, Poor Dad" is the classic conservative capitalistic mantra. People do not have money because no on has taught them how to have money.
The book makes several key points and I do not disagree completely with any of them. I just don't think it is quite that simple. First, it says that you need to think of assets and liabilities and the most controversial concept is remembering that your house if not an asset. While that may be true, unless you want to be homeless, some type of housing is necessary. If you take that point to avoid buying up and living beyond your means, then it is probably a positive message. But having a home and eventually getting to the point where you don't have house payments or rent is not a bad thing.
I do agree that more education on how to invest in the stock market is called for in a world where pensions don't exist and you have to depend on your 401K and Roth investments to retire. This is the part I find interesting. Not everyone wants to understand the financial markets and investing to such an extent that our new world order requires. What is wrong with a day where people just want to work hard and be rewarded for that intention. Why does everyone have to become the person described in this book. What exactly should we expect from a just society?
But this point is made and it is hard to disagree.
"Our current education system has not been able to keep pace with the global and technological changes in the world today. We must teach our young people the skills, both scholastic and financial, that they will need not only to survive, but to flourish." While some people can read this book and become inspired to turn the corner financially, it is just not for everyone and we cannot leave those people behind.
The book makes several key points and I do not disagree completely with any of them. I just don't think it is quite that simple. First, it says that you need to think of assets and liabilities and the most controversial concept is remembering that your house if not an asset. While that may be true, unless you want to be homeless, some type of housing is necessary. If you take that point to avoid buying up and living beyond your means, then it is probably a positive message. But having a home and eventually getting to the point where you don't have house payments or rent is not a bad thing.
I do agree that more education on how to invest in the stock market is called for in a world where pensions don't exist and you have to depend on your 401K and Roth investments to retire. This is the part I find interesting. Not everyone wants to understand the financial markets and investing to such an extent that our new world order requires. What is wrong with a day where people just want to work hard and be rewarded for that intention. Why does everyone have to become the person described in this book. What exactly should we expect from a just society?
But this point is made and it is hard to disagree.
"Our current education system has not been able to keep pace with the global and technological changes in the world today. We must teach our young people the skills, both scholastic and financial, that they will need not only to survive, but to flourish." While some people can read this book and become inspired to turn the corner financially, it is just not for everyone and we cannot leave those people behind.
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