In 2004, Jason predicted the hollowing out of the middle class through a mass concentration of power and transfer of wealth. Well, it’s no secret that we are now experiencing this exact phenomenon. We have a mass affluent society today, but also mass poverty and a widening divide between the haves and have nots. However, there is hope. Jason and his team are here to help you move up into the middle class or higher and it can happen a lot sooner than you think if you put inflation and time on your side. People with a net worth of 30 million or more are considered the ultra elite, but you would be surprised how quickly you can get there by investing in income properties and running a good business or career as an intrapreneur, rather than an entrepreneur, and having a side hustle (a great real estate portfolio for instance). The mobility available to people if they are using income property is staggering. Just look at where Jason came from and how he grew up with very humble beginnings in the inner city of LA.
We are now living in a mass affluent society and private jet companies are a good sign of that. NetJets is now pausing immediate access to new fractional and lease purchases of private jets. There are just no rooms left at the inn or airplanes for sale! The super rich can’t even get a jet anymore… FlexJet is also pausing sales as fractional demand for their memberships surges with consumers ready to go all in on flying private and has now enacted massive changes for renewing members with regards to booking times and surcharges.
The Ever Widening Wealth Gap
So why does this matter? Isn’t this a website about real estate investing? It matters because this is a sign of wealth concentration and the wealth gap getting wider and the rich getting richer and richer. And it’s a sign of… you guessed it: inflation. As real estate investors, we can use inflation to our advantage. The wealth gap is widening and will get worse. Costco has raised its minimum wage to $17 per hour. Mom and pop businesses will not be able to compete with that and go out of business and constrain supply. Amazon will continue putting smaller retailers out of business by making it impossible to compete by raising minimum wage. We’re seeing a consolidation of power, a consolidation of wealth and it’s going to continue.
It’s also a good idea to compare how things are made. Just compare one of Jason’s first cars to the cars we have now: a cheap Toyota with no air conditioning, a radio maybe, stick shift, used and resold by the rental car company – they don’t even make cars like that anymore! They don’t make cheap cars and they don’t make cheap houses anymore because of all the regulations. That’s why the type of properties you buy through the Jason Hartman network will be properties that become extremely rare in the future because what we are seeing is the end of the entry level home. Just another reason to start your real estate portfolio as soon as possible.
Most people overestimate what they can do in a year and underestimate what they can do in five years, but it is incredible to see how Jason’s clients have grown over time by following his plan. The opportunity for economic mobility with investing correctly is staggering. So consider building a real estate portfolio for yourself because Jason is here to help you in these unprecedented times. Stay tuned for an announcement about our fantastic virtual event coming up soon – see you there!
Ashley & The Jason Hartman Team