Here are two great myths of the American dream: (1) financial independence; (2) debt-free living.
Why are they myths? Because life involves both.
Finances require money. Money involves the division of labor. We are all interdependent. Even a hermit is dependent on others: the owners of the land he secretly lives on and secretly poaches on.
People say "financial independence" when they really mean "no dependence on a salary." They can achieve this if they own lots of income-generating assets. They do not have to show up at a job. But they are not financially independent. They are dependent on all those people whose productivity enables companies or governments to keep paying on the assets that the job-free people have invested in. This is not financial independence. It is independence from a salaried job. Let's keep our terminology clear.
The Myth of Debt-Free Living by Gary North
No comments:
Post a Comment