The disparity between generations is a subject that often incites tension. Who inherits the assets of preceding generations? If viewed from this perspective, it's likely that no one will receive anything. Money, designed for consumption, can be saved and accumulated. Such money is deemed outside the system. Savers are inherently frugal. The concept of wealth accumulation sometimes provokes irritation, but it shouldn't. The act of accumulating wealth serves as a stimulus for the economy.

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Restricting wealth accumulation could potentially lead to significant tension. You may have heard stories about a 60-year-old CEO who becomes involved with a woman in her twenties. Suddenly, his family seeks ways to limit the amount of money he can bequeath to his new spouse. Claims of mental illnesses, Alzheimer's, or distressed behavior may surface, leading to constant cognitive testing. These could be pretexts to limit his access to his bank accounts. This is not advisable as it curtails the motivation to work hard and create value.

Another issue to consider is the 'Game of Life' style gambling with large sums of money towards the end of one's life. This should not significantly impact earlier generations. There is no value exchange when you receive a gift or reward from someone who is retired and has no other place to invest their money.

Often, the opposite occurs. Quantitative tightening reduces the money supply, diminishing the value of hard work and increasing the value of accumulated wealth. Should scientists abandon their careers and switch to elderly care or gardening services because only the retired baby boom generation possesses excess liquid assets? Probably not.

Excess savings tend to accumulate with the elderly. Higher inflation implies that the value of the companies they built is less than previously anticipated. For instance, consider a building in San Jose that once served as the headquarters of a semiconductor company. Its value is now zero due to a lack of tenants. The owner likely struggles with mortgage payments. It's unfortunate, but there is no money in the system to hire employees or attract customers.

The generational gap is typically addressed through education. Experienced professionals mentor the younger generation in their field, who then take over the profitable business upon their retirement. Prestigious institutions like Ivy League and red brick colleges almost guarantee employment. These colleges typically admit a limited number of students. The fewer the students, the higher the likelihood of securing a well-paid job, thereby increasing tuition fees and faculty salaries.

The author had the privilege of working with professionals who designed entire computer systems in the 1980s. He also gained insights into the workings of successful companies during their prime, joining Microsoft a few weeks after Bill Gates' retirement.

Contrary to popular belief, inflation is not caused by excess money in the system. The definition of price level in macroeconomics refers to recurring revenues each year. This involves the money that continues to circulate, multiplied by a value representing the number of times it is exchanged during that period. Inflation occurs when high earners or the existing wealthy invest in commodities and products, outbidding consumers and expecting them to pay more the following week. If they invest in other assets like artwork or pre-existing properties, it may cause deflationary effects.

Over time, the recurring economy of the previous generation establishes its own financing system. Their investment banks employ licensed professionals. A stable industry with recurring revenues is less risky and more likely to attract debt investment. The jobs expected to be created when the seniors retire become prime targets for Ivy League schools.

However, growth may be limited, categorizing such stable companies as value stocks. Their profits become wealth that is passed on to families, philanthropic organizations, or venture capital funds. These markets are volatile and less transparent, necessitating scrutiny. Many investment restrictions requiring accredited investors or regulated crowdfunding limit this market.

Those outside this system represent growth. They need to find their own investment. Such stocks usually become growth assets. If you create something new, the shares become a new asset in the economy. You are likely to be rewarded with the entire value of the company, especially if you can keep the costs low.

Existing literature posits that the distinction between debt and equity financing primarily lies in the income tax levied on the cash flows. However, we propose that stable economies are more likely to be financed through debt, given their lower risk profile. Franchises, for instance, will analyze relevant data and allocate a portion of the local food economy to a nascent business.

On the other hand, growth-oriented businesses and startups, which inherently carry higher risk, are more likely to resort to equity financing. An exception to this rule can be observed in infrastructure projects, which are typically financed through government-issued debt. This strategy views debt as a low-risk mechanism for generating new capital and fostering economic growth, supported by the acquisition of machinery.

Equity, in competition with this approach, may not be readily available due to the aforementioned frugality effect. Therefore, it is imperative to explore avenues for low-income and low-wealth individuals to secure debt, thereby promoting economic growth and opportunity.