Updated: "Who Rules America - An Investment Manager's 2014 Update on the Top 1%"

With the advent of the Web and the ease that anybody who wants to can write a blog to tell their life story, I have found several interesting stories. It started when I was researching and reading RV'er blogs, particularly those of full-timers. Then, I found accounts of people who live in cars. It makes for very interesting reading, as I always wonder how people end up in situations like that. And quite often, it was by choice.

There was this story of a woman who lived in her car. She had been working at a small remote mountain town where jobs were scarce and did not pay much. She did not like to move to a more populated place where it would be easier to find work, preferring to be closer to nature in that small town. So, she lived in her car, and camped out in the wood. She worked a bit here and there for spending money. She wrote that she rather had her life that way, then spent time in a job just to pay rent and to have a "regular" life but less time for herself.

I did not detect an envy from her for a "rat race life" that she detested. Is she any different than us who want to ER, and forgo the fancy stuff we can get if we continue to spend time in a cubicle like most people do?

Now, I did not know about this woman's education, but her writing was interesting enough for me to read. She is a lot poorer than many immigrants who do not speak English well, let alone being able to write. But she lives her life the way she wants.

And then, any country will have hard-core drug addicts who simply cannot hold any job, or people with mental problems, or criminals.

I am not saying all poor people are like the above examples, but we can never have zero poverty, the same way economists say we can never have zero unemployment. There are always some people quitting their job out of boredom, moving to a new place and looking for a job that they like, etc... The utopia that we all like to see does not exist.
 
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While I fully agree many VC funds produce rather crappy outcomes in terms of adding value to society the last few years, there are some good examples

The trouble is that it's pretty much inherent in the system that there will be some really bad VC funds and lots of failed VC funded ventures. Often there are cycles too, where VC ventures seem stupid for a while, then we cycle back to generating some really excellent companies from VC funding. Economic game changers that generate lots of wealth - and not just for the people currently on top.

I know a few folks who think the VC approach is just so broken and unfair. I see the successes as well worth the many failures.

Most countries don't have a VC culture. It's truly one of the US's (and a very few other countries) secret sauce.
 
Most countries don't have a VC culture. It's truly one of the US's (and a very few other countries) secret sauce.

I've seen many business not start, fail, or go nowhere because of lack of access to VC capital, supporting networks and entrepreneurial spirit here in Europe. There are some little oases and government initiatives, but they lack power. The still fragmented market isn't helping either.

The world owes a great deal to mr. Fairchild, he started this whole crazy thing with semiconductors :)

Hopefully China will rise soon as an alternative.
 
The other fact that always gets ignored is that the "top x%" is never a lifetime membership. People enter/leave various income and net worth categories all the time. The top x% in 2009 is not the same membership as the top x% in 2011 or in 2014 or in 2020.

To me, that's the most important thing. There is a lot of social mobility in this country. I grew up dirt poor, meager assistance from the government. Now, I've just made it to the 1%. Someone had to move out of the top for me to come in.
 
To me, that's the most important thing. There is a lot of social mobility in this country. I grew up dirt poor, meager assistance from the government. Now, I've just made it to the 1%. Someone had to move out of the top for me to come in.

Nobody really had to leave--you and 99 other people were born to expand the pool. Like a stock split :).
 
The other fact that always gets ignored is that the "top x%" is never a lifetime membership. People enter/leave various income and net worth categories all the time. The top x% in 2009 is not the same membership as the top x% in 2011 or in 2014 or in 2020.

That's the stat I had referred (inelegantly) to.

People try make it sound like there's some conspiratorial ruling class who lock the doors behind them..."you can't win, they've stacked the deck against you".

I saw this quote earlier today:
"The rich get richer, the poor get benefits and the middle class pays for it all".
 
That's the stat I had referred (inelegantly) to.

People try make it sound like there's some conspiratorial ruling class who lock the doors behind them..."you can't win, they've stacked the deck against you".

I saw this quote earlier today:
"The rich get richer, the poor get benefits and the middle class pays for it all".
If by rich you mean people who are earning $1-3mm, these people pay a huge amount of tax. It's just that the political and braying classes want more.

Ha
 
Absolutely on point HA. The aggregate tax US workers pay should cover all our expenses and start paying the deficit down immediately. Of course that naively assumes that tax dollars are used wisely.

Infinite layers of expensive counterproductive regulations, corporate loopholes, entitlement funds that have been diverted from their intended pupose etc.. suck out so much money that we have to continue deficit spending. People paid high salaries as you pointed out are the most severely impacted.
 
I think that it is funny that there is so much talk of the rich getting richer and the poor getting poorer.... like the rich just had it handed to them... that it was not earned by them....


Look at the list of the richest people in America... the vast majority of them created their own wealth.... even going back to when I was younger... Gates, Buffet, Ellison.... and now the people who started Google, Facebook, Twitter etc. etc. etc...

Sure, you have a Walton family thrown in once in awhile.... but it is not that common..
 

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