Why isnt everybody rich?

[The_Real_Crunk]

Srsly.

Dont most people pass all their **** on to their offspring when they die? And then shouldnt that have compounded over generations? Or does everybody just blow all the stuff that gets passed down to them? I dont get it.

Like say my parents owned a house, and then I bought a house and was paying it off. Then they died and left me the house, and now I have two. And then when my kids get old enough they start paying for their own place, or move into one of the places I have, and start banking all their money. Then repeat it again.

Or am I just stupid and dont understand economics or whatever?

[Sampson]

Re: Why isnt everybody rich?

Compared to the people of a hundred years ago, we are all rich.

The poorest in this country live better than the richest of the dark age kings.

150 years ago, you were insanely wealthy if you had indoor plumbing. Now, all but the homeless have that. Ditto TVs, Cars, cellphones, computers...

Assuming our society doesn't collapse due to peak oil or war or corruption or what have you, our great great middle class grandchildren will probably gizmos that make the billionaires of today envious.

[Big Rick Cook]

Re: Why isnt everybody rich?

The government is partially responsible for heirship shenanigans. They tax the BALLS off of passing money and property (depending on the property, that is) from deceased to their living family and friends. Aside from that, a lot of generations of families are just as poor as their descendants, or poorer, as Sampson suggests.

Also, yes, people who end up with large amounts of money all at once tend to blow it within a year or two with nothing but a bunch of large toys and a big house they can't pay taxes on now that they went through all their money.

I know that my grandparents left nothing but debt, and my two surviving grandparents will be leaving nothing but debt as well.

[Deeth Irteen]

Re: Why isnt everybody rich?

Everybody rich? That's COMMUNISM!!!


Seriously, though. Nobody's ich in this country because we all somehow owe money to other countries.


Either that, or we've all been spending everything on diets, male enhancement, and drugs, drugs, drugs.

[Hrafn]

Re: Why isnt everybody rich?

Yeah, you have to realize that hundreds of years of careful family scrimping and saving can be undone by one dimwit with a gambling problem or a gold-digging wife. You also have to realize how many people there are who literally live on their Social Security checks because they lived paycheck to paycheck their whole lives, and didn't save jack (or perhaps they made a decent wage, but didn't save because they didn't care to). All they're passing on to their children is their bad money sense. It's why the lottery tends to work out for state economies so well; it's a voluntary tax on the lower class. They are the ones who mostly pay to play it, some of them get rich, but most of those, having never really developed good money sense, will blow that money in a few years time, sending it circulating back into the economy and themselves spiraling back into financial obscurity. A gross generalization with a lot of exceptions, but still something that's a fairly true guideline.

[John Mora]

Re: Why isnt everybody rich?

I mean, there was that guy that made like $20 million and blew it all in like a year.

[IamPinhead]

Re: Why isnt everybody rich?

Hrafn seconded.
People who aren't used to having a great deal of money don't adapt to the possession of it very well. They tend to treat it as endless and without consequence, but know all too well how easily that much buying power can corrupt somebody once it's gone.

[Duel]

Re: Why isnt everybody rich?

I believe that being loved by your family and friends is the best kind of wealth.

[Alex]

Re: Why isnt everybody rich?

"Dont most people pass all their **** on to their offspring when they die?"

If they had anything but debt to pass down, sure.

"Or does everybody just blow all the stuff that gets passed down to them?"

Some people do blow whatever was provided for them, yes.

"Or am I just stupid and dont understand economics or whatever?"

This isn't just economics. It's life. There's a million reasons why I am not rich. Why aren't you rich?

Both sides of my family have been poor for generations. When they combined and made me, I became part of the super poor generation. Now I've got to climb more metaphorical ladders just to reach the middle class. **** being rich, I've already accepted being poor for the rest of my life.

[Kire]

Re: Why isnt everybody rich?

People get sick before they die. Getting sick here costs money. LOTS AND LOTS of money.

[Wavelength]

Re: Why isnt everybody rich?

Between normal costs in life, and the sometimes enormous costs of health care in old age (and no this is not an argument for universal healthcare), and given that people who live a long time likely spend the last 25-30 years of their life without significant income, it seems completely logical that most people are going to die without passing much networth on. Maybe your ancestors were able to give you a fully-paid-off house, but most can't.

Additionally, inflation (and, as Big Rick mentioned, high inheritance taxes) ensure that the fruits of your grandparents' lifelong efforts are going to be greatly diminished by the time they're passed to you.

[Hrafn]

Re: Why isnt everybody rich?

Yep. My grandfather got around this by giving away a lot of the valuable items he owned while he was still alive, after my grandmother passed. Property, vehicles, all that stuff. Of course, while the plus side is avoiding the inheritance taxes, the down side is you really have to trust your family to do this; otherwise you'll be spending your twilight years rotting away in one of those nursing homes they stick the destitute sorts.

[Nixon]

Re: Why isnt everybody rich?

People get sick before they die. Getting sick here costs money. LOTS AND LOTS of money.

People are born sick, too. Some have to deal with chronic health problems that start in their childhood.

I'd actually have some savings if not for the thousands of dollars I have to spend on health care every year (and yes, I have health insurance). As it is, that's my biggest expense aside from rent.

[John Mora]

Re: Why isnt everybody rich?

Also the wealth of two people (more like one person, since women weren't bread-winners) was split between many children.

[Cutter De Blanc]

Re: Why isnt everybody rich?

MONEY DON'T GROW ON TREES, SON