In this episode, Scott Becker explores the stark contrast between America’s capital-owning class and the nearly 40% of adults with no market exposure.
Chapter 1: Who is Scott Becker and what is this episode about?
Chapter 2: What is the great divide in America discussed in this episode?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's discussion is the great divide in America. And so here's the discussion. And this isn't a social justice podcast. This isn't an equity podcast. This is just a reality podcast of where we are as a nation. So when the market goes up and down.
There is one class of people that gets very concerned about it and then sometimes can't understand why everybody's not concerned about it. And so this discussion is really about why that is. And here's the concept. About 38% of adults, 42% of households have absolutely zero money in equities, the stock market, the index funds, anything.
They essentially have, for all practical purposes, zero real investments besides maybe a checking account or a savings account, if that. And so if you're part of the capital class versus the class that doesn't have capital, You've got a whole different perspective on this than others do.
So if you're actually in this situation where you have equities and you freak out or get anxious when the market goes up or down and can't understand why on Twitter there's so many people saying who cares? The reason so many people don't care is so many people either literally about 40% or so, 43% of households, 38% of adults or something like that have literally no exposure to equities.
And you might say, well, they should think deeper than that, because if they don't have equities, their job is still at risk if the economy is going poorly. And that may be true, but so many people live paycheck to paycheck. And this is not a negative on them. It's not a negative on society. It's not a negative on anything. It's just an understanding of the great divide we have.
One person on Twitter writes, when we ask about index funds versus stock funds versus other things, quote, Most people don't have the extra dollars a month to invest in anything at all. My husband and I barely have a savings account for emergencies. And again, God bless this person.
This is the reality that we live in, that there is this great divide where 38%, 40% have literally nothing in equity stock, anything. 60% do. And even though that's 60%, a huge amount, you have a relatively small amount. But even those people are probably worried about the market when it goes up or down.
But there is a lot of the capital class that gyrates up and down, wealth spending, wealth effect, how they feel. They don't feel psychologically with the markets. And I think it's a great understanding for all of us that if you're part of that capital class where you've got equities and stocks, I'm not saying give it away. I'm not saying anything.
I'm just saying you ought to be damn grateful that you're in that class. You can worry about these things because there's 40% of us that have nothing in the markets, nothing in equities, nothing in index funds, none of those things, let alone private equity funds and those kinds of things. Thank you for listening to the Becker Private Equity and Business Podcast. We hope you enjoy this.
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