don’t forget the cards, car payments, and possibly student loans. Tons of homeowners are negative net worth. I keep a spreadsheet of all my notable assets and debts, so I can monitor if my net worth is The Man Face Mask Could You Be Any Closer Shirt rising or falling. Also have to factor in inflation for an accurate read. Absolutely! And your house can e negative net worth if the value drops and you owe more than it’s value. There are all sorts of ways to get a negative net worth with credit cards, medical debt, student loans, etc. Less likely these days but I bought a house in 2006 right before the crash, and I was upside down for 10 years. I lost $80K when I sold it. If I had lived in a “no recourse” state, I would have walked away from it. I’d rather have that 80K than “better credit” for buying my next house or car. 80K is a nice 50K down payment (which also improves your loan terms) plus 30K to pay for a car in cash. I get what you are saying; I see it differently, though. This visualization is not the best situation for me to make this point because the comparison range is from us $0 plebs to $130 billion. Mixing the words millions, billions, and trillions in comparative contexts diminish clarity.
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But I also think more people need to see those zeros (absent a direct comparison) so they can see the true quantitative gaps in wealth. The visualization of those extra zeros, I believe, highlights the massive difference. I disagree with using scientific notation to express these values, as it hides too easily how big these numbers are. I just know that the national treasury or whatever that is called switched to American usage about 50 years ago. They might have switched back, it might not have impacted colloquial usage (although it probably has), I don’t really know. This was posted on Reddit a while back and I’m afraid I can’t remember who created it. Really helps put into perspective the vast wealth inequality. It takes some patience and A LOT of scrolling to get to the end. The argument, backed by linked sources (though an argument, not an incontrovertible fact) is that one time windfalls make a significant enough impact on many to lift them out of poverty. I agree that there is a The Man Face Mask Could You Be Any Closer Shirt difference between wealth and liquidity, however, that doesn’t mean we can’t tax and convert that wealth into something meaningful to the public. And once you reach a certain stage of wealth, money becomes comparatively.
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Also, is this actually that surprising to anybody? differently when presented with these numbers. Them = very richly. Me = not very rich. Them = closer than me. It’s The Man Face Mask Could You Be Any Closer Shirt like how Cleopatra lived closer to the moon landing than the building of the great pyramids. If you look at the years it’s obvious, but intuitively it isn’t. I think the only lesson here is that “the wealth of Elon Musk is closer to your wealth than to the wealth of Jeff Bezos” is a useless statement that draws upon an unnecessarily specific comparison that nobody ever makes. My response to that statement isn’t “Wow, that’s so shocking!” it’s “Yeah I guess so, but functionally that doesn’t really mean anything.” I think that’s kinda the point we’re both making, and is the only bit of information you can draw from this post; which is not particularly exciting or useful.
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