Thursday, November 12, 2015

Best Investment Advice: Get Married

The next era will be one in which the family business is the last bastion of self-actualization.  Since a town can now tell you what to pay employees, they do.  Since freedom to contract is necessary for business survival, no freedom to contract in wages means, well, no employees.

 (Why are govts so destructive in wage policies? It's tricky,  most gov't union contracts are minimum wage plus, so the push behind this is a raise for gov't workers, not some "justice" issue.)

This is too bad as far as it goes, but not insurmountable.  There is a genre of business, the family business, and while it once hired many people, may also be run as a family affair. And really, in life, there is nothing as satisfying as family and kids, etc.

At the same time, the trend is to not start a family, and I think Mish is typical among many economists who say "very good."  But to me this just means fewer families makes each one more valuable.  And fewer family businesses makes each family biz more valuable.

Mish is probably not uncommon among cold-blooded economic writers who are pro-abortion, and in a recent post he asked why not let refugees die in the Balkan winter cold, as a sway to check refugees.  Yikes.  How about instead USA stop creating refugees by starting wars (although in fairness, Mish also advocates that.)

So Mish welcomes this:
Delaying marriage is yet another deflationary trend the Fed is fighting. The Fed's inflation tactics and government interference are largely to blame.
Wages have not kept up with education costs and for someone in college the CPI is seriously understated. In addition, union handouts and ridiculous pensions that millennials have to support but will never receive, add greatly to the problem.
Millennials also have to overpay for health care, picking up the tab for overweight boomers etc.
Finally, attitudes towards having children have changed. Many women put their careers first, a smart thing to do in my opinion. Kids, who can afford them?
Well, if people waited until they could afford kids, none of us would be alive.  Most poor kids have no idea they are poor until someone points it out.   There is no preparing for kids, and as one who has raised three, the challenge is not monetary, no, not at all.

Find a mate, start a biz, get married, have kids... Mish advises not, I advise do.    Make sure you are both on the same page for the ups and downs of self-employment.  It is a lifestyle, not an accumulation method.

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