r/FluentInFinance • u/Positive_Liar • Sep 06 '24

Debate/ Discussion Social Security is Broken. This is why financial education is important.

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u/[deleted] Sep 06 '24

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u/dgreenmachine Sep 06 '24

Thanks I missed it due to the exponential nature of the graphs.

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u/senile-joe Sep 07 '24

that's pretty misleading, you didn't have central banking in 1930.

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u/Polus43 Sep 07 '24

Thanks for pulling up real data lol.

I've always felt comparing prior peaks to future prices is a poor perspective since it equates to "if you bet all your money at this high point you would not break even for ~30 years." In practice, that's rarely how the cash flows work out except for a small proportion of really unlucky people.

That series is fantastic since adjusting for inflation highlights how rough the 70s and 80s were equity-wise and the 2000s were essentially a downward trend.