Pushing back against the ‘WTF happened in 1971’ thesis
It’s easy to lose perspective at how good things are now despite all the negativity in the news and the chronic dysfunction of the political class. Conditions for the professional class are better than ever compared to probably any time in US history for wealth creation, both in terms of high wages and the ability to invest said wages in rapidly appreciating assets.
In the 80s and 90s although the stock market and economy boomed, inflation was high, and mortgage rates were significantly higher than today. Moreover, the wage premium for professionals was not as high as it is today, and this even holds after accounting for student loan debt. Adjusted for inflation, doctors and specialists have seen enormous gains over the past 3+ decades.
I think the era of sub-3.5% 30-year mortgages has been one of the biggest tailwinds for the creation of personal wealth ever. And then second, the rise of the consumer information technology sector.
