Why does money get you less and less each year? How come housing, which used to be affordable on a single average income now feels out of reach despite dual above-average incomes?
In this episode of Signal Over Noise, Owen uses his least favoured board game - monopoly - to explain our current situation of precarious personal and public finances and the broader economic forces that contribute to it. He discusses modern monetary policy, inflation, and the challenges of achieving financial independence. Then, Owen presents a three-step individual plan for financial freedom and suggests some half-baked collective solutions for meaningful societal level change, including housing and future generations. He emphasizes the importance of understanding economic systems and taking proactive steps to secure financial well-being. This is essential to avoid either a wartering down of your quality of life or a massive increase in the total hours needed to work to sustain it as our money is melted.
Key Takeaways
- Money feels increasingly hard to get and easy to lose.
- Modern monetary policy drives inflation and financial instability, especially for new entrants to this massive game.
- A three-step plan for financial independence includes funneling in, swatting up, and funneling out ("FISUFO")
- Entrepreneurship can be a viable path to financial freedom.
- Investing in assets that outperform inflation is crucial.
- Trust in institutions is necessary for long-term financial planning.
- Societal changes are needed to support future generations.
- Housing affordability is a significant issue that needs addressing. It is an asset we can live in and, unlike most financial assets, directly impacts our quality of life, whilst also offering financial returns.
- We must engage in conversations about pro-natalist policies - our current financial and social systems depend on future generations existing in reasonably large numbers.
Sound bites
"We need to stop printing so much money."
"Poverty is an obliteration of the future."
"The economic treadmill is in full motion."
Keywords
money, financial independence, inflation, economic policy, entrepreneurship, investing, societal change, housing, future generations, monetary policy