As I mentioned in my last post, investing makes a lot of sense for people who want to retire earlier, safer, and with a higher degree of protection than one would have with a regular job. This is applicable to basically everyone.
I explained this with the distribution of all the freshly printed cash that is being pushed into our economy. This is especially true in times of a crisis as we are currently experiencing. The difference in the amounts of cash that ends up in the hands of ordinary people, and in comparison with how much of that money goes to companies, is astounding.
But don’t rely on my word for it. The ones who know about this best are obviously the ones who get all the money, and I recently stumbled upon an article in my Flipboard account about that topic that explains it further very well.
You can find the entire article HERE, but let me take out and quote the most important paragraph of the read:
“All the signs are that coronavirus will increase inequality even further. The government is accumulating debt to subsidise the wages of the employed and self-employed unable to work because of the lockdown. Businesses are taking out loans to keep afloat. This debt is being used to pay bills and rent to those who own assets.“
The money goes to those who own assets
Now, The Guardian is not my favorite paper but every now and then there is a good article. This article also has some weak points that might be debatable, but in the essence, this paragraph as highlighted above explains it really very neatly. I underscored the key points above.
Governments are printing money, issuing bonds. Interest rates are being pushed down to make loans cheaper thus more attractive. And all this money, trillions of dollars and euros, is ultimately being pushed to and ends up with those who own assets.
It’s your choice to make
I know, it’s easy to get offended by this system. It’s easy to blame it for all the problems in the world. But as I learned early on in my career, complaining solves nothing. You need solutions. Just complaining for the sake of it doesn’t help anyone. You need to have a solution, some viable alternative. And the fact of the matter is that currently there are no alternatives to the system we live in that would assure us to end up on a better path.
Politics aside, everyone has a choice here. You can be outraged, you can complain, and you can think about alternatives, go into politics, and plan for a better future. Or do nothing.
But in the meantime, it might be smart to own some assets.