over9k
So I didn't tell my wife, but I...
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The video above is worth the 35 minutes. She absolutely hits the nail on the head with every single thing she states.
I've bought the book as a result.
In my day, we could only afford a cardboard box
actually it was only a two-man hiking tent for a while , ( for me ) but then i migrated to a garden shed ,Jeez, yours was cardboard, we could only afford paper
22.5% interest on something that is 4 times your wage is probably a lot better than 10% on something that is 10 times your wage.yeah , life was so easy in the '70's
i bought a block of land back then and the mortgage was only 22.5% per year
imagine the squeals of despair if they had to pay 10% on a HOUSE mortgage nowdays
I am not a it was better harder in the past even if i rant so much.
well the wages were lagging , but i discovered 'side-hustles ' ( and had a knack at gambling back then ) way before they become popular22.5% interest on something that is 4 times your wage is probably a lot better than 10% on something that is 10 times your wage.
Especially if the interest rates are 22.5% because of inflation which is also increasing your wages rapidly, vs wages that are stagnant.
They younger generations are facing all sorts of problems, I am not saying older generations didn’t also have problems to over come, it’s wrong to think things were harder in olden days just because interest rates were higher.
That's not really how things work. John Maynard Keynes wrote about how in the future everyone would only work a few days a week because the productivity explosion from new technologies would make everyone so wealthy they would not need to work as much. But it never happened. Keynes was wrong about a lot of things in general.even with a UBI and robots, people will find meaningful ways to add value and earn more, but might choose to work a lot less hours than we expect today.
The difference back then is the house or land was far cheaper, relative to income, than it is today meanwhile incomes were rapidly rising thus eroding the real value of the debt.imagine the squeals of despair if they had to pay 10% on a HOUSE mortgage nowdays
I think robots could make Keynes prediction come true.That's not really how things work. John Maynard Keynes wrote about how in the future everyone would only work a few days a week because the productivity explosion from new technologies would make everyone so wealthy they would not need to work as much. But it never happened. Keynes was wrong about a lot of things in general.
"In a short essay published in 1930, the world’s most important economist, John Maynard Keynes, predicted that within 100 years, most people would be working no more than 15 hours a week.
He believed the standard of life for most people would be four to eight times better for us all by 2030, and that for the majority, working would be optional.
“At that point,” Keynes wrote, “everybody will need to do some work if he is to be contented … a 15-hour week may put off the problem for a great while. For three hours a day is quite enough to satisfy the old Adam in most of us.”
Long before Keynes economists like David Riccardo and Henry George and John Stuart Mill wrote about how "economic rent" absorbs a large portion of the productivity gains of society. i.e. land prices will benefit the most from the rising productivity of society and keep rising so that people will continue having to work long hours just to put a roof over their heads.
What Is Economic Rent? - Fat Tail Daily
In today's Land Cycle Investor, I respond to a reader's question about economic rent.daily.fattail.com.au
You'll notice that the trend was broken in 1999, right when howard & co halved the capital gains tax rate. This is not a coincidence.
As someone who was paying close attention at the time, I recall it somewhat differently.You'll notice that the trend was broken in 1999, right when howard & co halved the capital gains tax rate.
And let's not forget the internet Making mainstream Real estate web presentation.As someone who was paying close attention at the time, I recall it somewhat differently.
Two things happened followed by two more:
1. The First Home Owners Grant
2. A sentiment shift in bank advertising which had previously focused almost entirely on strategies to pay of your mortgage faster. Now, all of a sudden they were actively pushing loans without even requiring a 20% deposit. The entire sentiment shifted from finding a house then seeking approval from the bank to simply "how much can I borrow?".
Then came the next two:
A. Real estate became a prime focus of the mainstream media. Practical "how to DIY this project" TV programs had previously existed but typically aired at midday on a weekend or some other obscure time hosted by an actual tradie showing how to do this or that and giving details of what timber, what size bolts and so on to use. The idea that home renovation would be considered prime time entertainment was a new concept and took off in a big way.
Meanwhile print media, and a majority of people still read newspapers at the time, jumped on the bandwagon with editorial content extolling the virtues of real estate. Plus in Tasmania at least (not sure about other states) the printed "Real Estate Guide" became a very dominant feature of the Friday paper - the whole thing was printed in full colour on gloss paper at no doubt very considerable expense. That hugely fuelled "property pr0n" - even people not in the market tended to look at it at least casually.
B. Universities stopped being about educating people who wanted to enter a particular profession and shifted focus to aggressively chasing students, both foreign and domestic, with the idea that everyone ought have a degree. That added to immigration (actual foreign students).
Meanwhile in the background everything surrounding the trades was slowly but surely being destroyed. The whole thing - TAFE, the public utilities, the various in-house workshops and depots within government, the entire manufacturing industry, etc, all actively being run into the ground and much was already stuffed at that point. What that did was ensure a future shortage of tradespeople, since the bulk of training was always done by government utilities etc plus the manufacturing sector, and combined with the efforts of the universities discouraged many from even trying to enter a trade.
I'll acknowledge the CGT change may also have had an effect but it wasn't the only issue that drove a sentiment shift at that point. FHOG in particular set the market on fire and the rest followed.
My personal view is the only thing that'll fix it is a broad paradigm shift. It's not one individual thing, it's a broad shift that's needed back towards production and back towards competency being seen as critical in all fields with politics there to be the gatekeeper not the originator.
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