Thursday, February 20, 2020

Solid Foundations


Consumption Inequality bothers me more than Income or Wealth Inequality. Scarcity is a reality. This highlights Conspicuous Consumption in a world where a Billion people still live on less than $2 a day. Most people live hand-to-mouth. For most people Income is a proxy for Consumption, and few have the ability to build Wealth. Some have the ability, but not the desire or discipline. You can live a debt-financed life where your consumption exceeds your high income, and still have negative wealth. Building sufficient Capital to finance your consumption detaches the power income and wealth have over you. It doesn’t mean you can do anything. It forges internal resolve and the ability to respond. Reduces anxiety. Gives perspective. If you have a secure base powering your endurance, and the resilience to adjust, you are in a fundamentally different place from constantly hunting for the next meal. I don’t think fear for survival is a motivator for the kind of creativity that inspires. We build from solid foundations.



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