richardhutnik said:
People don't get rich saving. They get rich owning assets that produce more money for them, and they leverage their time heavily. And then, from this, there is a compounding effect that happens. The saving is needed in order to be able to have extra resources that can be mobilized for more, and theoretically lead to an improved quality of life later. Save to day, get more tomorrow. But today, saving likely is running less than the rate of inflation. What was discussed earlier in another post was about how America no longer had saved, and fell behind. This CNN article goes into further details on this, on America getting soft: http://globalpublicsquare.blogs.cnn.com/2011/10/09/america-is-getting-soft/?&hpt=hp_c2 |
People don't get wealthy from saving (much) anymore because inflationary monetary policies and consumption focused economic policies undermine saving money as a strategy ... Even contractions in the market, which represent huge buying opportunities for those who saved and have liquid assets, are "prevented" to protect those that are over-leveraged (and those backing this insane debt).
Look at the housing market collapse to see the truth in what I say, you can look at this as being a negative to the people who used horrible terms to buy more house than they can afford or as a positive for those who saved up and can now afford their dream house; but all policies and government action sided with those who overbought ...
