Millionaire Or Homeless: The American Middle-Class Decides

Realities of the economic system

The world is already at that point and the reality is starting to dawn on many people. It is way more obvious in America than in most other places at the moment. The idea is that the Keynesian economy is splitting the population into two kinds of people — the millionaires and the homeless. No middle ground. If you are not a millionaire, homelessness is the next tier.

This would have severe repercussions for society and the economy too. But for now, no one seems to care that much about this result. I have been saying for some time now that it is the worst-case scenario. That’s because cities become unlivable when there is no middle class.

The middle class is the engine of prosperity for an economy. And while I encourage people to be as rich as possible, most people will pause and stay in the middle class. Why? No ambition.

If you feel fulfilled in your life at the middle-class level of wealth, that is okay. Most people are. But there are special and privileged people who are poised to move forward. When such people don’t, enough wealth isn’t created for the growth we expect.

When this division of “millionaire vs homeless” appears, economists are going to explain it away as a good thing. They will say that the economy is growing because middle-class people are now millionaires. Yes, some will move up from middle class to millionaire. But many will fall into homelessness.

Let’s explore why and what can be done to change it.

The Unintentionally Rich

A lot of rich people like to explain the factors for their success like it is their hard work. But too many things are dictated by economic cycles. In my first book, I explained this clearly — you position yourself to be rich.

I saw a documentary where an older gentleman (likely in his 70s) said that when he was young, he knew someone who was a bond trader as a second job. His other job was at his train station. He needed to do both to make ends meet for his family.

In a few years, this man with two jobs is now fully a bond trader making a fortune every month. Of course, he now lives in luxury. Not that he got promoted as a bond trader or anything like that. Money just flushed in his direction. Lots of money suddenly went into this financial trading industry and it boomed big in a matter of a few years.

This is the case of the unintentional rich. If you ask such a person, they’ll tell you they worked hard to make the money they make. But in the real sense of it, they became rich because they were operating in an industry that suddenly got flush with cash.

Not all industries experience that. But for those who do, it can be overwhelming. This brings me to the first moral point here — when a deluge of money comes in your direction, never make yourself feel like you don’t deserve it.

It is important to own and fully embrace the wealth that comes your way, even if you know that it was just plain luck. Accept your luck. Don’t push it away. Never say that it is too much money. Being lucky is part of success. Don’t feel like you need to give away a large portion of it to feel good.

All successful people got lucky. Yes, many of them added hard work and other things into the mix. However, other people worked just as hard and got nothing.

If you are rightly positioned, you will get lucky. It may take a while, but luck will find you. When that luck comes, don’t disqualify yourself. Don’t self-sabotage. Everybody else got lucky too. Always remember that.

I believe in working hard after getting lucky. I don’t believe in working hard to get lucky. To get lucky, you work smart.

Closing the Gap

The gap is growing every day and is more obvious in big first-world cities.

P.S. Continue to part 2 of this article here: https://www.richculture.co/p/rich-getting-richer-middle-class-shrinking