Life Lessons from Monopoly
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Yeah, life lessons from monopoly. I saw this story today. It was about how older Americans right now are better off than ever. They invested for decades working longer and get bigger social security checks than in the past. When again, good life for senior citizens. That’s fantastic. It really is. And you got the recent data coming from the Federal Reserve Financial well-being is the best in US history. Why? Is it because of social security? Is it because of entitlements? Or is it because of the private sector? Is it because of individual initiative, private initiative? What is it? Well, you don’t think about it. Do you think it’s social security?
You think Social Security has been the major driver of why senior citizens are doing so well? Historically? Interesting. For most of U.S. history, incomes of senior households have been well below those of younger households. But after adjusting for relevant differences, seniors live in smaller households. They pay a lower portion of their income and taxes. This is no longer the case. As of 2018, the adjusted median household incomes of seniors equal that of younger households.
Now, despite COVID in 2021, seniors adjusted income continued to equal that of younger households. Now, why? Why is this? Again, over the past four decades, income of the poorest 25% of senior households grew faster than those of middle income senior households.
Also the inflation adjusted medium income of senior households had by people 75 and older increased by 140%. This is due to wealth, to wealth. The typical seniors household inflation adjusted net wealth in mid 2022 was nearly 200% higher than it was in 1983. Households headed by people now 55 to 64 are positioned to continue this improvement.
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Why? Why do you think this is doing the right thing? Saving, working longer? Okay. Again, you think about this, the increase in income from investing household savings and higher earnings from working past 65 account for 80% of the growth in the average senior household income. We need to have more policies out there.
More policies out there that encourage people to save, to put money away. I’ve been lamenting a long time here on the program, we need a better job in schools explaining to kids how money works. You make choices in life people. I know we are preoccupied in this country with this concept of…
equality, we think the world equality, it’s equal. It’s wonderful. It’s great. I don’t necessarily see it that way. I have a much, much different approach than a lot of angry Americans out there that are always musing about victimhood and not being fair and not being equal and all this other than I take that I throw that away discount that.
Am I gonna be angry? Am I gonna be ticked off that, you know, I wasn’t, you know, blessed with being, you know, six foot two, 240 pounds and able to play linebacker for a pro football team? It is what it is. Okay? It is what it is. That wasn’t my place in the world. You’re gonna worry about something like that? You’re gonna worry about whether or not someone…
grows up and has more than somebody else, grows up and is born into a wealthy family. You’re gonna look into the pockets of others and you’re gonna worry about equality. Gonna talk about, is it fair, is it not fair? People. You do that, you’re gonna be enormously frustrated throughout your entire life. You’re gonna look for bogeyman, you’re gonna look for people to blame.
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And rather than place blame, my suggestion is improve your own lot in life by whatever talents God has given you. And I bring up Monopoly. I had this sent to me. This is why this story, it reminded me. And I had a look it up. There was a line talking about the game of Monopoly. And we all familiar with the game of Monopoly. Imagine playing the game of Monopoly.
Okay, you roll the dice, you’re going around. And you get a good roll, and I know, what’s that one that’s around the corner there? You land on St. James, you’re starting off the game. Nah. Nah, I’m not gonna do that. You move on, you go to another spot on the board. Nah, I’m not gonna buy that. Again, you play the game of Monopoly, and the only thing you do is roll the dice. Roll the dice.
and you go from spot to spot to spot. You never buy any assets at all. The only thing that you get, the only thing that you get is your $200 when you go past go.
Think about that. So what you’re gonna end up doing in that game of Monopoly is you’re gonna continue to go around the board, you’re gonna collect your salary, and you’re gonna give the money to the people that were smart, the rich people that invested, and you’re gonna spend your time trying to basically stay out of jail throughout the entire game. You know how many people do that? You know how many people in this country go through life?
Like that?
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A lot, a lot. And again, more often than not, those are ones that end up being bitter and blaming other people’s situation. Again, you know, personal initiative, taking a chance, investing, saving, building, creating. It can make life a hell of a lot more exciting. I could say, how boring would that Monopoly game be? Think about that for a second. You’re playing Monopoly, you don’t buy anything.
You don’t put up any houses or they don’t do anything. Not a lot of fun, is it? Watchdog on wallstreet.com.
