The Good ‘Ol Days Weren’t

Family Update


My wife is back up in Chicago getting her Botox shots for migraines. You’d think these treatments would be pretty standardized, but they’re not. She’s seeing the doctor who actually trains other doctors how to do it. We’ve tried two doctors- one treatment worked and one didn't. Remember: don't assume doctors know what the heck they are doing. Her migraines are much better now, and we’re not going to risk switching. Botox has proven to be one of the most effective tools for her.

Grammy is coming down on Thursday, and we’re driving up to see Senay’s apartment. That sort of thing is really important to Grammys. I’m sure we’ll check out the campus and maybe even crash a couple of wild frat parties. Maybe chug a beer or two.

The kids are back in school. I’d have a cute back-to-school picture, but Dalanee isn’t here, and Dad isn’t the best at remembering to do those things. Alex really liked his first day at Cardinal Mooney. They do everything on iPads, no paper at all. They also have the kids put their phones in locked pouches that don’t open until dismissal. That’s some pretty fancy technology. 

Imagine it’s 1723. You’ve been invited to dinner in the pristine New England countryside, untainted by factories, still green and quiet. A family of English settlers greets you warmly. The father, strong from a day’s work in the fields, reads from the Bible at the head of the table. His wife tends a bubbling pot of stew. Their 17-year-old son has just returned from a brisk horse ride, and their 12-year-old daughter is quietly playing with her dolls. Picturesque, right?

Only this is a mirage. In reality, the father likely suffers chronic pain from decades of punishing labor. The wife’s lungs are failing from years of inhaling smoke from the hearth. She will probably die before 40. Without a dowry, the daughter may remain single and marginalized. The son may already carry an untreated infection that will blind him and kill him before he’s 30.

In 1900, the typical American family spent almost 100% of their income just on food, clothing, and shelter, leaving almost nothing for savings or investment.

Today, thanks to higher productivity, global trade, and technology, the average U.S. household spends about 50% on essentials, freeing up more income for savings, retirement accounts, and recreation.

Modern markets give us access to investments unimaginable to previous generations. Two centuries ago, “investing” often meant lending money to a neighbor or speculating on risky shipping ventures. Today, ordinary people can own shares in the world’s most profitable companies, real estate across continents, or even a diversified global portfolio all from a phone in their pocket.

Compounding works in our favor in a way our ancestors never experienced: an 8% average annual return in the S&P 500 over the last century would have doubled money every nine years, impossible in the pre-industrial economy.

Retirement itself is a modern invention. In 1880, the average American was already dead before they could reach what we now call “retirement age.” Social Security didn’t exist until 1935, and the first 401(k) plan wasn’t introduced until 1978. Today, a well-planned retirement can last 20–30 years or more.

Access to credit has transformed opportunity. In the 1800s, if you wanted to start a business or buy land, you often had to rely on family wealth or the goodwill of a local banker who might demand outrageous terms. Today, we have structured lending, mortgages, and low-interest financing, allowing some upward mobility.


• For most of human history, nearly everyone lived on the equivalent of $2/day or less, which is extreme poverty.
 

• In 1820, over 90% of the world lived in extreme poverty. Today, it’s under 10%, thanks to trade, technology, and economic growth. The global middle class now numbers over 4 billion people, fueling opportunity, innovation, and stability.
 

• Interestingly, in 1900, the wealthiest 2% of American households owned over one-third of the nation's wealth, and the top 10% held roughly three-quarters. Meanwhile, the bottom 40% held virtually no wealth. This is almost the same today, almost to the exact percentage point. Weird.



 Be Blessed,
 

 Dave