Turn financial markets into casinos and investment becomes nothing more than gamling. From Charles Hugh Smith at oftwominds.com:
It’s all so pathetic, isn’t it? The only way left to get ahead in America is to leverage up the riskiest gambles.
It’s painfully obvious that the only way left to get ahead in America is crazy-risky speculation, but nobody seems to even notice this stark and stunning reality. Why are people piling into crazy-risky bets on speculative vehicles like Gamestop and Dogecoin? The obvious answer is because others have reaped a decade or two of wages in a few weeks, and skimming a couple hundred thousand dollars in a few weeks or months is the only way an average wage earner is going to be able to buy a house, fund a retirement account, afford to have a family, etc.
Look at the reality of wage stagnation: I made $12 an hour in 1986, and I wasn’t some highly paid techno-guru or Wall Street shill. $12 an hour was an OK wage in 1986 but it wasn’t fantastic. Now 35 years later, $12 is still an OK wage. A lot of people make less than $12/hour.
But what happened to the cost of healthcare, housing, childcare and everything else required to have a family in those 35 years? These costs have exploded higher. It was already a stretch to buy a house in 1986 making $12/hour, but now–are you joking? Depending on the region, the cost of a modest house has tripled or gone up five-fold or even ten-fold in the past 35 years.