You should know what’s happening in today’s ‘not-so-nice’ economy to protect yourself. Professor Mark R. Rank uses some good analogies in his 2014 book ‘Chasing the American Dream’ to explain how the ongoing economic war has gotten much worse. Musical chairs, lakes and thin ice.
There are fewer high paying, quality jobs in today’s economy. There are simply not enough good jobs to be found. Like the game musical chairs, when the music stops everyone scrambles for a chair. But there aren’t enough chairs to go around. Those who don’t get a chair or good job may have all the qualifications, work-ethic and intelligence as those that do, but that’s the game. Those are the rules – more players than chairs. Thank you globalization, technology and wealth redistribution politics!
Income is like a flowing river or stream. Wealth on the other hand is like a lake or reservoir. You can enjoy the water from a stream and even divert the flow of some of the water into a lake. When the river runs dry you have a reserve water supply until it starts flowing again. The moral of the analogy is to build a reasonable amount of wealth so that if income is interrupted, your family’s lifestyle is maintained.
Finally, thin ice illustrates the increased financial risk that Americans face today. Walking on ice that is not frozen solid is risky because you can fall through. Today’s brutal economy prohibits many people from generating enough income to build solid personal wealth. They can’t divert enough of the river into a lake reservoir so they are walking on thin ice. Today’s War Chest advice….. get a chair and make a lake so you can walk on solid ice.