Easy to be penny wise, harder to be pound wise.

[zbigi]

But that new car smell must be carcinogenic.

I got a car that has been in transit from country of manufacture and sitting on dealer's lot for roughly a year before I bought it. I got a decent discount (in Poland, people care about year of make, so last year's car is automatically worth less) and there was zero new car smell inside.

[delay]

Because of the exponential nature of investment the beginning is lackluster while the end is intense. I never said things grow exponentially forever. I don’t think I’m near consuming the world GDP with my investments yet. The early seeds had the biggest impact is all I meant. So sacrificing more when I was young was a good plan. Up to a point…,

Thanks for your thoughts. Since we agree that things can't grow exponentially forever, we agree that the stock market will not do that either.

If you invested in the summer of 1929 stocks would not reclaim their original value until 1960. In that case, the early seeds would have done worst! Not to mention what happened to the stock markets of France, Germany or Russia. It's only with the knowledge of today that we know investing in our youths was a good idea.

[chenda]

And the Japanese stock market has never recovered from the 1990 crash. And perhaps never will.

[zbigi]

The japanese stock market did recently finally recover to 1990 levels (in nominal terms anyway, there has been some inflation along the way...)

[7Wannabe5]

Well, there's always the possibility of investing in timber and meat rabbits prior to the creative destruction of stock market gains. Although, also entirely possible that climate change will lay waste to that form of security. Another example of penny wise, pound foolish would be that population growth in the U.S. is currently greatest in the areas most likely to be experiencing hellishly hot weather and/or flooding by mid-century. I would also now throw AI and humans collaboration into the mix for possible post-capitalist dystopian paradigm catalysts.

[chenda]

Some economic wag once observed there are 4 types of economies; developed, undeveloped, Argentina and Japan. No one can work out why resourceless Japan with it's sucky geography got so rich, nor why resource rich Argentina with fantastic geography got so poor. I'm not sure what lessons can be drawn from that.

[jacob]

No one can work out why resourceless Japan with it's sucky geography got so rich, nor why resource rich Argentina with fantastic geography got so poor. I'm not sure what lessons can be drawn from that.

Here's a hint: https://en.wikipedia.org/wiki/Corruptio ... ions_Index

[chenda]

Here's a hint: https://en.wikipedia.org/wiki/Corruptio ... ions_Index

Yeah but I wonder if it's a egg and chicken thing. Argentina is possibly unique in that it was briefly very wealthy circa 1900 then got permanently poor again.

Its also notable that cold countries are usually wealthier than hotter countries although that may be entirely coincidental.

[zbigi]

Japan also has off-the-charts work ethic. They may be the most anti-ERE/FIRE country in the world, in terms of culture - for them, total devotion to work is a large part of their identity. South Korea seemed to try to copy this, but did it in less harmonious way (so it basically looks like blatant exploitation to many people in SK). They also had an incredible growth story, but at huge social cost.

[chenda]

@zbigi - yes indeed, the collectivist culture made them very efficient at manufacturing, and they had stable and authoritarian political systems which could enforce a state-driven industrialisation programme. Latin America has had neither political stability nor the work ethic.