The path to financial justice feels hard. But why? What’s happened in people’s lives to the point where most individuals are struggling?

That’s really the biggest question of our times. People aren’t wealthy, in general, but given the productive output of the economy as a whole, they should be. So what went wrong?

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The Game Is Rigged

The biggest factor is that the game is rigged from birth. Those born into wealth and privilege are most likely to bring it with them into adult life. They make the necessary connections and get the capital they need early on, giving them a much higher chance of being successful long-term.

Intergenerational wealth isn’t the only transmission vehicle, though. Research suggests that once someone achieves a certain level of market power, their wealth is liable to continue growing. Millions of people across the U.S. have become rich as a consequence of simply buying assets early and then enjoyed rising valuations over the last 30 years.

Labor Is No Longer Valuable

At the same time, the value of labour has been stagnant for around 50 years. Real earnings per hour haven’t risen much, if at all, in spite of the colossal changes in technology and productivity since the 1970s.

This regime is part of the financialization of the economy. New money creation has poured into beefing up asset prices, most of which is owned by the wealthy. These assets then create new income streams, keeping the value of labour lower than it otherwise would be.

The Legal Game Is Challenging

The legal game around wealth is also challenging. People who earn a lot of money often have teams in place to protect them against cases.

That’s why Barrera Law Group LLC strongly suggests working with attorneys whenever liability or negligence is an issue. Individuals who’ve lost money should seek ways within the system to claw it back, since there are usually legal avenues.

College Debt Is Too High

College debt is another reason why life is more financially challenging for a lot of people. Many workers are going into the red to finance education which, for the most part, aren’t as valuable as they were fifty years ago. The debt also can’t be discharged via any legal mechanism, making it more insidious than private debt. Many people continue to pay their fees into their thirties, forties, and fifties, with interest rates continuing to compound against them.

Housing Became A Casino

Finally, housing became a casino. People didn’t know what was going to happen to the value of their properties after they bought. Sometimes they’d rise, and other times, they’d plummet, reducing security.

The upshot of this is that house price valuations have exceeded inflation for about 25 years. The downside is that all this price growth is built on the financialization of the economy. It’s not a growth in real wealth over time since the houses themselves haven’t improved. Therefore, prices may fall substantially in the future without warning, perhaps in the next crisis.