We live in remarkable times, and our relationship to money is very different because of it. Appreciating this can open up possibilities for how you think, feel and act with your money. We all see the world through the lens of the culture and the times in which we live. People living during the Renaissance didn't know they were living during the Renaissance. It's often only in hindsight that we can see the pattern. Today it's hard to fully appreciate the truly remarkable conditions in which we live. To us, it's just life. To our ancestors, it would be breathtaking. Consider that for nearly all of mankind's existence, our ancestors lived on the equivalent of about $1 to $3 a day. Imagine paying for your home, your food, your clothing, your medical needs - everything - from a total of $1,095 for the entire year, or about $91 per month. For us that would be dire poverty, yet that's what our ancestors lived on - and, until recently, most of the population on Earth. Something changed all that, beginning in the late 1600s in Holland, spreading through England in the 1700s and moving gradually - and then recently more quickly - throughout the rest of the world. That $1 to $3 a day grew by a very conservative factor of 16. And more realistically, when you include the vast improvement in the quality of goods and services, it grew by a factor of 100 (how do you compare an iPhone or antibiotics with anything in existence a few hundred years ago?). This was the beginning of the Industrial Revolution, followed soon after by what Deirdre McCloskey calls the "Great Enrichment" - which we are very much still enjoying. |
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