Are you in the 9.9%?

[Benny Profane]

You know, every now and then I read about how most Americans, of all classes and ages, cannot pass a basic financial knowledge quiz. And here we go again.

[old goat]

https://www.theatlantic.com/magazine...ocracy/559130/

I'd take minor issue with the point that the 9.9% has more wealth than the 90% and 0.1% combined. What about the 9.8% compared to the 90% and 0.2%, or the 9% compared to the 90% and the 1%. Point is, any cutoff is arbitrary and to some extent obscures the true nature of wealth distribution. None of that changes the fact that wealth inequality in the US is huge and getting huger, with no serious prospect for change.

Total wealth is somewhat misleading when real estate is included--at least a primary residence. Everyone has to live somewhere, and while you can sell that house and make a lot of money you have to spend that money on somewhere else to live. However, real estate is important in inherited wealth. As Piketty shows in "Capitalism in the 21st Century", wealth inequality is in large part due to inequality in inherited wealth, including real estate. Most people don't inherit anything.

But if you're looking at who is worth $1.2 million, the answer is pretty much old people. Old people who have accumulated home equity or savings from high-paying jobs, or whose wealthy parents have kicked the bucket. There are exceptions, of course, but there are only so many hedge fund managers and young beneficiaries of dynastic wealth out there.

I've always thought it was weird that seniors get the discount when as a group we have the money. (Of course plenty of seniors are living hand-to-mouth, social security check to social security check or Walmart paycheck.) Interesting that Squaw gives discounts to young adults rather than seniors--as of 2018-19.

[BeardMech]

Nope, and if I ever left my wife Id be fucked as my credit is like a turd in a bowl of cereal (not actually legally married). Im likely to become a 60 year ski bum. Anti dentist.

[iceman]

At that sort of level, net worth is also mostly just a function of age.

Fuck I hope you're right, I would totally dig dying rich.

Imagine the pillows they'd give you.

[Cono Este]

Net worth means shit.

I’ll take income everyday.


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[Ted Striker]

^^^ and where is that income going?

[iceman]

^^^ and where is that income going?

Hookers and blow?

I hope

[XXX-er]

Total wealth is somewhat misleading when real estate is included--at least a primary residence. Everyone has to live somewhere, and while you can sell that house and make a lot of money you have to spend that money on somewhere else to live. However, real estate is important in inherited wealth. As Piketty shows in "Capitalism in the 21st Century", wealth inequality is in large part due to inequality in inherited wealth, including real estate. 2018-19.

I'm not poo pooing the RE that mom left us but really IMO the steady income is still > the big score

but I am a boring old fuck eh?

[iceman]

What No, your net worth is the value of what you own minus the amount you owe. Come on you know this man.

[DJSapp]

Net worth is a still photo in time. The potential income and growth potential is the real difference. Example:

Dude in KC owns a 400k home outright, 700k savings, pulls 65k salary, no debt. 1.1m net worth

Dude in SF just bought a home in SF for 2m and owes 1.6m, pulls 300k salary, has 100k savings. Net worth 100k.

Now fast forward 10 years and grow the home value, savings and salary by 5% per year. Who's going to be able to stuff more into savings faster by tightening up discretionary spending?

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[Ted Striker]

^^^ ?

2 - 1.6 + 0.1 = 0.5

The 400 down isn't equity?

[reckless toboggan]

?

2 - 1.6 + 0.1 = 0.5

Well that doesn't equal 9.9%

[Mazderati]

And if both dudes are 60, KC is cashing out and moving to Costa Rica while SF is still a slave to the machine. There are all kinds of what ifs, none of which change the definition of net worth.

[XXX-er]

What No, your net worth is the value of what you own minus the amount you owe. Come on you know this man.

well I know its un American but I don't owe any money

IME the income is still the big deal IME cuz while the big score was kinda big

the monthly income will continue to be the big deal for another 30 yars or so

[Tippster]

so a fixed amount of assets equals cool kids club

some kids use leverage to apply their capital to live a lower quality life in mecca (SF, SEA, NYC, CHI), while the pragmatic souls shun debt servicing-as-a-lifestyle and go elsewhere to live higher quality lives in less prestiguous environs.

but that choice doesn't change what you are, just how you choose to integrate


"but I can't leave SF! My job, and my frens and..."

Attachment 236867



"but nobody in NYC with 1.2M is aristocracy, that only starts wiff a place in _____"

Attachment 236869



I really fkd this up a few weeks back by jumping the gun on "ya but _____ drastically underestimates the impact of social distinctions..."

Live & learn.

So if reality was different you'd be willing to move to the MS delta to make your accumulated wealth equivalent to someone with 1/2 your expenses? Come on.

I guess I am within the range. That said I do have a choice, and always have, not to live in a trailer in the sticks. I could sell out and "retire" right now to rural South Dakota and be considered a wealthy man. I do not consider that a viable choice. Call me an elitist but so be it. I choose not to be a prisoner in my home, hoping an ambulance can drive me 70 miles to the nearest hospital when I'm incapable of driving myself, since if all goes well my kids will also be living in a place of their choosing, not near me due to my infirmity.

So many sneering bro-brahs in this place. Fuck you. Your choice to live in the wild while you are young and healthy making different financial and long term decisions than others does not make you "right" and others wrong.

[old goat]

Piketty's book boils down to this. Capital (wealth) earns an avg of 5%, pretty steady over many countries and centuries--both pre and post industrial revolution. Wages increase at the rate of the growth of production--avg about 2%. (Why this is I don't understand but he's the one with a PhD so I'll take his word for it.) Bottom line is this--without government intervention the gap between those with wealth and those without inevitably grows. The narrowing of the gap in the 20th Century was an isolated aberrancy caused by the destruction of capital in 2 world wars and a depression and the increased production necessitated by post war rebuilding. His solution is to tax wealth (as opposed to or in addition to income. Good luck with that.

Interesting that while income equality in the US is greater than in Europe, the opposite is true for wealth, due to more inherited wealth.

The most interesting boring book I've ever read--and it is tough reading.

[reckless toboggan]

[VTeton]

so a fixed amount of assets equals cool kids club

some kids use leverage to apply their capital to live a lower quality life in mecca (SF, SEA, NYC, CHI), while the pragmatic souls shun debt servicing-as-a-lifestyle and go elsewhere to live higher quality lives in less prestiguous environs.

but that choice doesn't change what you are, just how you choose to integrate


"but I can't leave SF! My job, and my frens and..."

Attachment 236867



"but nobody in NYC with 1.2M is aristocracy, that only starts wiff a place in _____"

Attachment 236869



I really fkd this up a few weeks back by jumping the gun on "ya but _____ drastically underestimates the impact of social distinctions..."

Live & learn.

Chicago is cheap as shit, fuck, providence is probably more expensive than Chitown...

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[St. Jerry]

Where does the 9.9 stop and .1 start? Asking for a friend.

For household net worth it's $20M (from study linked in Atlantic article). 160,000 families in the US at this level or above.

[DJSapp]

^^^ ?

2 - 1.6 + 0.1 = 0.5

The 400 down isn't equity?

Stupid phone app won't let me edit. My point remains, SF dude will outpace net worth

[Just Looking]

doesn't being in the 9.9%, or higher, kinda reflect poorly on being a TGR Bro?

I mean maybe hasbeen or bootlicker, but ...

[hawkgt]

paper money is paper money...... cash is king.

Try paying your employees and invoices with equity....

[capulin overdrive]

Stupid phone app won't let me edit. My point remains, SF dude will outpace net worth

Figures as presented, the SF dude would lucky if he could even make his 30 year mortage, let alone eat.

[Ted Striker]

Try paying your employees and invoices with equity....

So there's this region of CA that roughly starts around Palo Alto, and runs down through San Jose. Maybe you've heard of it?

[BeardMech]

Is 9.9% above being a dentist?
Shoulda been a dentist, mom said it
Pain's the way that my craft expresses
Born in a little shop of horrors that I can't even afford to rent in
Where's the exit?