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Old 05-07-2017, 01:07 PM
 
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People don't understand because they have either the Poor Mans Mindset or the Middle Class Mindset. The poor want the middle class lifestyle but don't realize that this lifestyle is because those people are in debt. If they didn't have the debt, most would live just like the poor.

Redefining the Middle Class
Under this new definition, every household one housing-bubble-burst away from the destruction of their home-equity "wealth" isn't really middle class. Neither are households a paycheck or two away from insolvency.

Compare this to what the wealthy own. Note that the bottom 90%'s assets are largely the family home, an asset which is offset by a heavy burden of debt. The wealthy own income-producing assets: business equity, stocks, bonds, trusts and rental real estate.

Of Two Minds - Redefining the Middle Class: It Isn't What You Earn and Owe, It's What You Own That Generates Income

Last edited by petch751; 05-07-2017 at 01:16 PM..
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Old 05-07-2017, 01:09 PM
 
40,993 posts, read 22,528,845 times
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Poor Mans Mindset: Look to the government to save them, spend every penny they get,

Middle Class Mindset: As they become more successful, they buy liabilities and support their lifestyle on debt (take money out of their pocket). This group is taxed heavily to support social safety nets but few benefit from them. It is difficult for this group to grow their capital to buy assets as the rich do, they live in a rat race.

Rich Man's Mindset: Buy income producing assets to pay for their liabilities.
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Old 05-07-2017, 02:59 PM
 
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A class of well-paid proletarians burdened with debt is not middle class --it is a class of debt-serfs who have been persuaded that debt-fueled consumption is wealth because this delusion is politically useful to the self-serving elites who own the wealth and thus the power.

Living within their means and servicing their mountains of debt removes most families from the middle class.
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Old 05-07-2017, 07:50 PM
 
Location: 500 miles from home
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No takers, eh?
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Old 05-07-2017, 07:53 PM
 
6,822 posts, read 5,639,774 times
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Quote:
Originally Posted by petch751 View Post
People don't understand because they have either the Poor Mans Mindset or the Middle Class Mindset. The poor want the middle class lifestyle but don't realize that this lifestyle is because those people are in debt. If they didn't have the debt, most would live just like the poor.

Redefining the Middle Class
Under this new definition, every household one housing-bubble-burst away from the destruction of their home-equity "wealth" isn't really middle class. Neither are households a paycheck or two away from insolvency.

Compare this to what the wealthy own. Note that the bottom 90%'s assets are largely the family home, an asset which is offset by a heavy burden of debt. The wealthy own income-producing assets: business equity, stocks, bonds, trusts and rental real estate.

Of Two Minds - Redefining the Middle Class: It Isn't What You Earn and Owe, It's What You Own That Generates Income
Absolutely true!

The new norm is to get into massive amounts of student loan debt to increase to a higher payscale for the overwhelming majority of positions.

Sure there are exceptions, but they are exceptions not the norm.

Just look to the student loan crisis in this country to see it first hand.
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Old 05-07-2017, 07:57 PM
 
Location: Los Angeles (Native)
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I remember reading a book on this topic a while back

https://www.amazon.com/Distinctions-.../dp/0345500229
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Old 05-07-2017, 08:09 PM
 
5,309 posts, read 3,775,414 times
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Originally Posted by Mikelee81 View Post
Absolutely true!

The new norm is to get into massive amounts of student loan debt to increase to a higher payscale for the overwhelming majority of positions.

Sure there are exceptions, but they are exceptions not the norm.

Just look to the student loan crisis in this country to see it first hand.
The student loan crisis is part of a bigger crisis, the higher education bubble. Adolescents are heavily and fiercely persuaded to go to college to get a degree, any degree regardless of future income prospects because there is a gigantic surplus of over-educated PhDs who have no job prospects except to teach at college. The only way to sustain income for these college professors is to constantly draw in more and more students with no concern whatsoever for the future economic prospects of the students. That is why many millenials have had a hard time obtaining gainful employment.

At this point in time blue collar careers are probably better for today's adolescents. There is more demand in the blue collar arena because gen-x and millenials were heavily steered towards college. Blue collar careers also provide better opportunities for ambitious people to own a business and build actual wealth.
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Old 05-07-2017, 08:10 PM
 
6,822 posts, read 5,639,774 times
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Quote:
Originally Posted by AtkinsonDan View Post
The student loan crisis is part of a bigger crisis, the higher education bubble. Adolescents are heavily and fiercely persuaded to go to college to get a degree, any degree regardless of future income prospects because there is a gigantic surplus of over-educated PhDs who have no job prospects except to teach at college. The only way to sustain income for these college professors is to constantly draw in more and more students with no concern whatsoever for the future economic prospects of the students. That is why many millenials have had a hard time obtaining gainful employment.

At this point in time blue collar careers are probably better for today's adolescents. There is more demand in the blue collar arena because gen-x and millenials were heavily steered towards college. Blue collar careers also provide better opportunities for ambitious people to own a business and build actual wealth.
All true.

People are slowly but surely being unplugged from the matrix.

I've been preaching this truth since I graduated college in 2007 only to experience a world-wide financial meltdown in 2008.
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Old 05-07-2017, 08:21 PM
 
33,031 posts, read 24,048,262 times
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Quote:
Originally Posted by petch751 View Post
Poor Mans Mindset: Look to the government to save them, spend every penny they get,

Middle Class Mindset: As they become more successful, they buy liabilities and support their lifestyle on debt (take money out of their pocket). This group is taxed heavily to support social safety nets but few benefit from them. It is difficult for this group to grow their capital to buy assets as the rich do, they live in a rat race.

Rich Man's Mindset: Buy income producing assets to pay for their liabilities.


Which income-producing assets are within reach of the poor?
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Old 05-07-2017, 08:22 PM
 
Location: Los Angeles (Native)
25,304 posts, read 17,503,493 times
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School system and society teaches to do well in school , go to college , then get a good job .

There isn't any time spent on teaching how real wealth is created.

A good job is considered safe and secure but in a way it could be more risky than having multiple streams of income .

The wealthy usually have multiple streams of income .

They might own businesses , real estate , get paid dividends from stocks .
Many of these streams might be passive or mostly passive .

For example someone might own property but they have it professionally managed so they aren't running over and fixing toilets .
Their time might be spent on "managing the manager" which might only amount to several hours a month versus 160 plus hours a month that a full time job requires .

Even a big business can eventually be a passive income stream if it gets big enough and have the right management .
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