Navigating Financial Realities: A Critical Examination of Investing, Economic Dynamics, and the Urgency for Equitable Wealth Distribution
Investing is indeed a powerful tool for building wealth and achieving financial freedom, but it's important to recognize the challenges faced by younger generations in the current economic landscape. The high cost of living and record-high inflation are significant barriers to financial success, leading many young adults to alter their spending habits According to CNBC. Moreover, we add this seems out of necessity rather than choice which is severe and heavily concerning.
Investment Realities, Immediate Financial Constraints.
While traditional advice often emphasizes the long-term benefits of investing, it may be worth noting not everyone has the luxury of waiting several decades for their investments to mature. Many individuals can only contribute a limited amount each month, which may not be sufficient to address immediate financial needs, we think this is expanding into human development and human rights as their only Resort to make more money is to harder and longer shifts. According to Investopedia what causes this “Income Inequality.” “is a variety of factors, including historical racial segregation, governmental policies, a stagnating minimum wage, outsourcing, globalization, changes in technology, and the waning power of labor unions.” To add the influences from factors such as inflation and the distribution of wealth we suspect is a cause of a cycle that tends to end with this Income Inequality, we hope this would just further the development of the measures we could take to aid income inequality thus protecting our economy and getting to one major concern. This is no affront to the wealthy as a natural law seen innumerable times in history like the Second Punic War in 201BC - 218BC, and games like the Mafia or the werewolf card game play a factor in this loop.
Regarding human development and rights, it's an undeniable truth that the period of youth plays a crucial role in shaping individuals. Clinical psychologist Meg Jay from the University of Virginia underscores the significance of one's twenties, emphasizing the transformative impact of this phase. In a broader context, the message conveyed to young individuals that they have an extra ten years to be in this world can have profound effects. Jay observes, "As a culture, we have trivialized the defining decade of adulthood."
For those in their twenties, particularly those facing economic challenges from lower-middle-class or below backgrounds, the available options may appear constrained in the current economic climate. The route to financial freedom may seem to demand an increase in working hours. However, committing extensive time to work during this pivotal life phase might prove impractical, as many individuals are grappling with essential aspects like finding a long-term partner, determining life goals, acquiring personal lessons, navigating through college, and undergoing overall adult development that lays the foundation for their thirties.
CNBC article says as of 2023 "50% of Gen Z ages 16 - 25 aspires to become an entrepreneur or start their own business, according to a new report from Samsung and Morning Consult." We say They may adhere to an "all work, no play" philosophy, but the typical employee may not aspire to such a lifestyle. Despite this, many individuals find themselves compelled to follow this path out of sheer necessity to meet basic living requirements.
All of this to say we think this could cause a big problem in the younger adult Generation's mental development as It's every human being's right to freedom and if you are working more than you should to keep food on the table this takes away from the amount of time, and freedom thus the way these adults may develop would be drastically different from the generations before them as there time to find out things has been taken.
Why is the address heavily centered around economic dynamics?
The conversation about inflation serves as a call to business owners (Granted enough capital) and policymakers to Provide more aid or employee benefits or consider the impact of their financial decisions on the broader economy. While inflation may be on a downward trend, the lessons learned from recent economic challenges like 2022's record high inflation, and other challenges like COVID-19 and how well W2 employees keep up with it underscore the need for a more balanced and sustainable approach to wealth distribution.
In investing, the time required to achieve total financial freedom is undeniably long. While risk-taking is a factor in financial success, blind risk is not, and the typical employee doesn't have the knowledge to invest wisely, they don't know where to start, nor do they have the capital needed to invest. According to Yoohaa Finance "55% of Americans Think They Don't Earn Enough Money to Invest, Survey Finds" as of 2019 and we don't presume logically with rising expenses this has been conveyed generously over the years. Given that our lower class comprises younger individuals, it is worth considering the apparent mismatch between the values of long-term investments for financial freedom and the desire for early financial independence to live a more youthful life.
What does all this mean and what may be a solution?
The economic problems we're facing may be solely due to the impact of COVID-19. If the pandemic had not occurred, the economy could have been doing well. However, even without COVID-19, many other issues still exist. Whether we like it or not, these problems persist, and it would take a widespread effort to effect any real change. Addressing the economic challenges faced by younger generations requires considering not only individual investment strategies but also broader economic policies. A reexamination of wealth distribution, resource allocation, and inflation's impact can create a more equitable financial landscape.
Firstly, initiatives should be undertaken to bolster educational and skill development programs. By aligning educational curricula with contemporary market demands and emphasizing vocational training, young individuals even teens ages 16-17 can acquire practical skills that enhance their employability, life skills, and adaptability in an ever-evolving job market.
Secondly, Advocacy for fair wages and the implementation of policies aimed at narrowing the income gap are crucial steps. Supporting and strengthening labor unions becomes pivotal in negotiating improved working conditions and just compensation for employees, ensuring that the benefits of economic growth are distributed more equitably.
Another key aspect is the promotion of financial education. By introducing comprehensive financial literacy programs, core classes, or a space to build with no curriculum only the teachings they may need to discover their way how to complete the task, this way schools and communities can empower the younger generation with essential money management skills and the ability to think outside of the box and drive an intellectual generation. This not only fosters responsible financial habits but also equips individuals with the tools to navigate economic challenges and make informed decisions about their financial future.
Focusing on education, income equality, financial literacy, and bringing a new way of thinking we suspect as a world can pave the way for a more supportive economic environment that addresses the unique challenges faced by the younger generation, prevent economic collapses and crises, build a more intelligent world, help them find their pursuit, what's also providing them a new way of thought.
