4 ms·
Genuine question from a non-economist: in the absence of the US stock market, what dynamics would make this disastrous?
by mwint 4y ago
Genuine question from a non-economist: in the absence of the US stock market, what dynamics would make this disastrous?
- lotsofpulp 4y agoThis is just a completely amateur opinion. Society has made promises decades ago about returns that would be delivered in the future, which would then translate to people being able to procure labor/services, especially in old age. Without those returns, actual quality of life will not meet expected qualify of life (which is and has been happening for decades for greater and greater portions of the population, hence all the political turmoil). Typically, this growth was easy to achieve due to almost all women having 3+ kids each. Then, advances in technology picked up some of the slack from decreasing birth rates. But seems like advances in technology are not able to make up for the decreasing birth rates since a while now, especially in non US countries.
- mjfl 4y agoTake the money in your retirement account and divide it by 10, and that's how much money you would have left. Your money wouldn't grow anymore, and it's growth due to stock appreciation is responsible for roughly 90% of its value. I would learn this stuff, pretty important for your retirement...