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> This means that, by the same metric used in this headline, your average groundhog or newborn baby has more "wealth" than the poorest 2.85 billion people in th
by aluhut 10y ago
> This means that, by the same metric used in this headline, your average groundhog or newborn baby has more "wealth" than the poorest 2.85 billion people in the world.
But isn't that true? If you are not born into a family that will give you a huge dept and a second mortgage on the house, you are better of.
- tjansen 10y agoNo, not necessarily. Cash flow matters more than debt. Spending all the money that you earn and keeping your net worth at 0 is actually a great way to live (at least until you retire). Being born into a family with huge debt is likely giving you above average income potential. I'd rather be worrying about being born into the family with just a little debt, but struggling to pay it off.
- aluhut 10y ago> Being born into a family with huge debt is likely giving you above average income potential. I don't understand that. A family with a huge dept is a badly managed family. How can there be anything good coming from that?
- tjansen 10y agoIn order to get huge debt you need to be able to demonstrate a high income potential, high enough to convince the creditor to lend you that kind of money. If you have huge debt, it's likely you can pay it off sooner or later. Also, you won't get it as an uneducated working class family. The background of a huge debt family usually results in an above-average income for the offspring.
- aluhut 10y agoI don't really need to demonstrate anything with credit cards looking to the US for example. Thinking of those nasty dept packages that got so prominent 2008.