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I'm probably only slightly less "poor" than my parents were at my age, but I'm vastly more wealthy.

roymurdock 11y ago
Interested to hear what you mean by this... "Wealth" in economics is the sum total of all of your physical and intangible assets, including a calculation of discounted future earnings. So being rich and being wealthy are very similar concepts in economics - large NPV of assets and income. But in normal parlance, rich and poor can also refer to standard of living/quality of life/happiness. So are you wealthier? Happier? Earning less?
- austenallred 11y ago
  "Wealth" and being "rich" (or making money) are similar but not the same. Adjusted according to inflation I make slightly less money than they do - meaning I have less cash in my bank account. But the prices of everything are being driven down so quickly that I live a much fuller life than they did on a per-opportunity basis. I have access to all the world's information, seemingly infinite entertainment, and a faster computer than they could even imagine in my pocket (not to mention my tablet and laptop). I can travel the world (I actually make money when I do so by Airbnb'ing my house), Amazon drops stuff they couldn't afford on my doorstop for very cheap. So I make slightly more, but what I have access to is much greater than they did. I'd argue my life is much richer (er, wealthier), despite making slightly less.
  - roymurdock 11y ago
    Gotcha, thanks for clarifying. Yes we do live in an amazing time where the standard of living/availability of goods and services in developed countries is great relative to 40 years ago. The only thing I would push back on is the increasing cost of some of the more fundamental investments - higher education and housing. Can't (sustainably) enjoy fast computers/airplanes/Amazon without a degree and a home.
    - austenallred 11y ago
      I suppose it depends on where you live/where you go to school. I went to BYU so my tuition was $2k/yr (then dropped out, so no degree either), and I live in a small town so I pay very little for rent ($800/month for a three bedroom house, work remotely). If you're in SF though, yeah, you're in trouble.

Interested to hear what you mean by this... "Wealth" in economics is the sum total of all of your physical and intangible assets, including a calculation of discounted future earnings. So being rich and being wealthy are very similar concepts in economics - large NPV of assets and income. But in normal parlance, rich and poor can also refer to standard of living/quality of life/happiness. So are you wealthier? Happier? Earning less?

austenallred 11y ago
"Wealth" and being "rich" (or making money) are similar but not the same. Adjusted according to inflation I make slightly less money than they do - meaning I have less cash in my bank account. But the prices of everything are being driven down so quickly that I live a much fuller life than they did on a per-opportunity basis. I have access to all the world's information, seemingly infinite entertainment, and a faster computer than they could even imagine in my pocket (not to mention my tablet and laptop). I can travel the world (I actually make money when I do so by Airbnb'ing my house), Amazon drops stuff they couldn't afford on my doorstop for very cheap. So I make slightly more, but what I have access to is much greater than they did. I'd argue my life is much richer (er, wealthier), despite making slightly less.
- roymurdock 11y ago
  Gotcha, thanks for clarifying. Yes we do live in an amazing time where the standard of living/availability of goods and services in developed countries is great relative to 40 years ago. The only thing I would push back on is the increasing cost of some of the more fundamental investments - higher education and housing. Can't (sustainably) enjoy fast computers/airplanes/Amazon without a degree and a home.
  - austenallred 11y ago
    I suppose it depends on where you live/where you go to school. I went to BYU so my tuition was $2k/yr (then dropped out, so no degree either), and I live in a small town so I pay very little for rent ($800/month for a three bedroom house, work remotely). If you're in SF though, yeah, you're in trouble.