You Built the Wealth. Where’s the Income? – Ep38 Dr. Mart McClellan

Based on that starting point, maybe the big macro comment on that would be that the amount of money that's been printed in our system has created just a tremendous amount of unrecognized problems that really people are not paying much attention to.

We just kind of go along doing what we do.

And people don't realize that the biggest wealth rotor in the ability to build wealth is inflation.

And so the more money that gets printed, the faster people become poor.

And so this is the, we call it in our business, stealth tax is something that never goes away.

And it's one of these things that if you, you know, put the numbers on it, you almost have to make your money twice.

You put your money into an investment, whatever it may be, but then it gets deflated away over 15 years or so back to, you know, zero.

You're like, you almost have to do things twice because of the, the inflation is just crushing your ability to advance.

And so I think that's a big part of it.

And then of course, with the, The debt to GDP piece, I think that's a big, big unrecognized piece of the equation.

Right now, we're right around 122 percent of debt to GDP and numbers support.

If we hit the 130 mark, most governments go in the direction we don't want to go in, like 99 percent.

So I think, you know, over those last seven years, you know, things have changed a lot.

Interest rates.

early part of the, you know, when COVID just started kicking in, it was cheap money.

You're in the real estate business.

You very well know the issues that many, many of these operators are having as expectations of interest rates, you know, staying the same or not going up and having to refinance at higher levels has a dramatic impact on people's cashflow and your ability to sort of make the investment that they want to make on that front end.

And so I think those, those two pieces over this last seven years have really, really created a lot of issues that people recognize interest rates.

They don't always recognize the inflation piece.

And, uh, And then you can go down a rabbit hole inflation, too, about how it gets calculated and all this and that, which is another maybe story for another day.

But it's real.

And of course, you hear all that affordability stuff and this and that.

And we can get into a deeper dive on why that is.

And I have definitely some thoughts on that piece of the puzzle.

You know, the economy, I'm happy in the direction that we're sort of moving in, because I think we are, you know, GDP is going to be one of the highest GDPs we've had in a long, long time.

Based on that starting point, maybe the big macro comment on that would be that the amount of money that's been printed in our system has created just a tremendous amount of unrecognized problems that really people are not paying much attention to.

We just kind of go along doing what we do.

And people don't realize that the biggest wealth rotor in the ability to build wealth is inflation.

And so the more money that gets printed, the faster people become poor.

And so this is the, we call it in our business, stealth tax is something that never goes away.

And it's one of these things that if you, you know, put the numbers on it, you almost have to make your money twice.

You put your money into an investment, whatever it may be, but then it gets deflated away over 15 years or so back to, you know, zero.

You're like, you almost have to do things twice because of the, the inflation is just crushing your ability to advance.

And so I think that's a big part of it.

And then of course, with the, The debt to GDP piece, I think that's a big, big unrecognized piece of the equation.

Right now, we're right around 122 percent of debt to GDP and numbers support.

If we hit the 130 mark, most governments go in the direction we don't want to go in, like 99 percent.

So I think, you know, over those last seven years, you know, things have changed a lot.

Interest rates.

early part of the, you know, when COVID just started kicking in, it was cheap money.

You're in the real estate business.

You very well know the issues that many, many of these operators are having as expectations of interest rates, you know, staying the same or not going up and having to refinance at higher levels has a dramatic impact on people's cashflow and your ability to sort of make the investment that they want to make on that front end.

And so I think those, those two pieces over this last seven years have really, really created a lot of issues that people recognize interest rates.

They don't always recognize the inflation piece.

And, uh, And then you can go down a rabbit hole inflation, too, about how it gets calculated and all this and that, which is another maybe story for another day.

But it's real.

And of course, you hear all that affordability stuff and this and that.

And we can get into a deeper dive on why that is.

And I have definitely some thoughts on that piece of the puzzle.

You know, the economy, I'm happy in the direction that we're sort of moving in, because I think we are, you know, GDP is going to be one of the highest GDPs we've had in a long, long time.