Rewriting the American Dream: Strategies for Wealth in a Stagnant Economy

The United States ranks relatively low in economic mobility compared to other developed nations. When compared to 24 middle-income and high-income countries, the U.S. ranks 16th in intergenerational earnings mobility. In the Global Social Mobility Index, which measures social mobility holistically through various determinants, the United States ranks 27th out of 82 countries.

Key Findings

1. Intergenerational Mobility: Both the United States and the United Kingdom stand out as having higher associations between fathers' and sons' earnings, indicating less economic mobility.

2. Absolute Income Mobility: The rate of upward absolute income mobility in the United States has declined substantially over the past 50 years.

3. Relative Social Mobility: Contrary to the self-conception of the U.S. as the "land of opportunity," the likelihood of a child born to low-income parents climbing to the top of the income distribution as an adult is low compared to many European countries.

4. Time to Reach Median Income: For an American household with low income to reach the median household income, it would require approximately five generations.

It's important to note that while the U.S. ranks low among developed nations, it still performs better than some less developed countries, particularly in Latin America. Additionally, when examining shorter-term mobility measures (5-10 year periods), the United States falls in the mid-range compared to other countries.

These rankings challenge the traditional view of the United States as a land with more mobility and opportunity than other countries, highlighting the need for policies to address economic inequality and improve social mobility.

This understanding is actually freeing.

To escape the limitations of low-income or middle-class living—especially with the middle class evaporating—you need to grasp how to build wealth. It’s not about taking risks the way you might think.

1) Keep a stable job, regardless of the pay, and focus on smart investing.

In today’s economy, it’s crucial to maintain a roof over your head. With an oversupply of labor and many using AI tools to do the work of multiple people, wages have remained stagnant for 30 years while inflation continues to rise. At best, you'll likely find a job that covers your monthly expenses—nothing more.

2) Profit from other people’s money rather than you own—because you don’t have any

Without a rich uncle, the true path to building wealth is through leveraging other people's money, often from a credit union or community bank. Once you establish a solid credit score, you'll be offered a line of credit, which you can use to purchase businesses or invest enough to cover the debt payments.

Unsure how to get started? We have a range of businesses available for purchase that will not only cover the debt service but also provide a strong return.

3) Focus on tried-and-true methods of building wealth.

You are not going to get rich buying-and-selling stocks, crypto, or precious medals. Those that do often move the market with the billions they’re trading with. You don’t stand a chance.

Instead, focus on what has made 95% of people rich

1) Buying real estate with the bank’s money.

2) Building a business and getting a bank’s line-of-credit

If you're poor, you're judgment-proof and can always file for bankruptcy. Focus on consistently doing these two things, placing assets into irrevocable trusts, and maximizing your credit leverage.

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