Today I learned something new. The latest statistic in the United States was edifying in what it revealed.
$1.4 trillion in college loan debt
The latest number for the amount of college loan debt that exists in the United States is $1.4 trillion. This debt prevents many Americans from saving, from investing, from becoming true and full participants in capitalism. Is it a big surprise that on college campuses throughout the United States we are seeing a rise and embrace of socialism, of even hard core communism?
I'm sure some bloggers on Steemit are anarcho-communists and while I do not consider myself in any way a communist I will reserve that debate for another time. The point I am making is that the more in debt, the less able to participate the students and college graduates are, the more attractive socialism, communism, and other Marxist style theories will become. The Zeitgeist may even favor an anti-capitalist approach at least by a sizeable portion of millennials.
Why cryptocurrency is essential to the survival of capitalism
While I cannot pretend to know what the future holds I can say that cryptocurrency fills a need, a desire, particularly in millennials, and most specifically in male millennials. It led me to an interesting conclusion and hypothesis which I will post more about later but the gist of it is that the young males in society have been disempowered, excluded from the benefits of capitalism, and cryptocurrency was the right idea at precisely the right time. For right or wrong, masculinity has been classically defined by, or associated with a desire to feel in control of one's own destiny. This sense of being in control has been systematically stripped from most young males in society, and now in the crypto-world there is property to own, a sense of being in control, a feeling of power, which likely attracts a lot of males. This may at least in part explain why crypto is a high percentage male, but this of course may not be the only reason.
What about the debt to income ratio?
The signal for being financially healthy is to have a very low debt to income ratio. The current trend in society pushes credit (spending money we don't have), and this creates debt (owing money). My argument from research while not a financial advisor, is that a low debt to income ratio is better. I don't like using credit, or credit cards, particularly because I acquired college debt and understand there is no value in owing money. In fact, it's better to be in the position of the lender than of the borrower in my opinion. The reason? The lender has a lower debt to income ratio.
I still do not prefer the idea of buying a house vs renting. If I rent then I can gain more experiences per dollar than if I own. What I mean is I can rent nice places all over the planet and keep maximum mobility. I can experience more of the planet, more variety of people, and even possibly live in nicer homes, by renting than if I own one home. This of course doesn't make sense for everyone which is why a financial advisor should be the person you discuss this with but if the goal is maximum quality experiences per dollar and you do not have a family reason to settle in a specific location then why not? At the same time if you do choose to own a home you do not have to live in it to legally hold ownership, and you can rent that home, condo, or apartment, while you live where ever is best for you at the time.