Warren Buffet: One Of America's Greatest Mistakes

The first mistake made by the people was that they thought they could stuff Ben Franklin’s in their pockets and life would be a success. The reason people thought they could bulk up their pockets because they could buy stocks. People buy stocks because they want their money to grow over time. That way they could use it for savings and in case everything went south on them they were ready. Warren Buffet started as a poor man living in the slums. He owned some of the most successful stocks in the world. He is one of the few to learn from his father mistakes and succeed. That is an example of knowing what you are going to get instead of grinding your teeth waiting for Santa to arrive. The people back then thought. there is no risk, and things
will work out for me. The reason was because people felt that since of Europe was in ruins after World War I and the U.S.A prospered they were the best.
At this point in time, the U.S.A was The World’s banker and Europe depended on loans from them. The people already believe that they are superior to others with their nation being a banker to many countries. Some people of the nation owned a little bit too much. The richest 1% of population owned 40% of the nation’s wealth. These people are so wealthy that if they mess up, the whole economy can go down like the Titanic. This causes others to think that they can be like 1% of population, but in reality, the odds are not in their favor. Most people want to be happy, and to be happy is to be rich. To be rich, is to have a nice pay day at the end of the month, so that is why people get up when they hear their alarm clock. Another trouble is that 5% of the richest people in America make up 33% of the income. The population gets a false sense of goodness based off of seeing one or two people doing it out of millions. Those percent’s cause problems because the economy was like two legged dog. There was a great gap between the rich and poor due to the over dependent production. Over dependent production is when you rely of someone else for help. The poor were letting the rich help them out instead of trying to do something on
their own. If we go through the three social classes of life, we can break it class down and see what is happening. First the rich or upper class, they have wealth and success, but there are very few of them. The middle class are the people who want to be rich, and before the crash the consumer spending dropped and unsold goods piled up; slowing the production. Then there is the lower class, which lets the upper class help them. A worry for the economy is when there is no balance between three classes. See when the all the middle class people try to move up, there is no middle class to balance and all hell breaks loose. We see that when the stock market plummets. Let us see what else the people messed up on.