The Trap of Compound Interest: Many view compounding as beneficial because interest earned is reinvested to increase profit. However, for those who are in debt, compound interest can increase the burden, leading to even greater losses. This effect disproportionately harms poor people, who often pay higher costs and face greater opportunity costs than the wealthy. While compounding enhances gains for those profiting, it intensifies harm for those losing money. This structure benefits the powerful, as the rules are designed by those in power. As a result, the desire for power can drive people toward questionable actions. - Joseph’s “just my thoughts”
Rather than building more houses to catch skyrocketing real estate prices, investing in transportation infrastructure is more effective. An office worker unable to afford London’s murderous rent moved to Barcelona, Spain, to live in a three-room house. He commuted to low-cost airline Ryanair for about £ 300 less than commuting from London (as of 2017: £ 580 house rent + £ 778 transportation fee = £ 1,358). The transportation environment changes our lives. Thoughts can’t keep up with the change. - Joseph’s “just my thoughts”