In the Digest this week, we’ve been featuring Eric Fry’s research on what will likely be the biggest influence on American society, and your own wealth, over this next decade — the Technochasm.
This is the name Eric has given to describe the growing wealth gap between the “haves” and “have nots” that’s being fueled by wealth generated from technology.
Yesterday, I got a peek at Eric’s latest issue of Smart Money, which went out earlier today (you can click here to sign up for free for Smart Money). It’s an interesting piece that ties in the Oscar’s “Best Picture” winner with the Technochasm. I found it timely, and wanted to run it here in the Digest given our “Fry takeover week.” Fortunately, Eric agreed.
So, today, we’re going to turn it over to Eric. You’re going to see how the Technochasm is occurring globally, being reflected in our arts, and why it’s only going to continue from here.
Enjoy,
Jeff Remsburg
2019’s Best Picture Could Hold the Key to 2020’s Biggest Profits
By Eric Fry
If you haven’t already, I hope you get a chance to see Parasite.
That’s the South Korean thriller that this past Sunday won the Academy Award for Best Picture and three other Oscars.
It’s my second-favorite film of the year — after Jojo Rabbit.
Its plot runs like clockwork.
It’s got thrills, scares, action, and violence — all the good stuff.
The actors really dig into their roles and provide a lot of humor in an otherwise serious story.
You get to see a lot of Seoul, a world-class city most of us will likely never get a chance to visit.
And it’s got one of the most incredible you-didn’t-see-that-coming twists I’ve ever seen.
Seriously, if you can handle subtitles, you should check Parasite out.
Also, it delivers an incredibly timely message about the biggest crisis facing the world today …
A Mansion on a Hill … and an Apartment Underground
In Parasite, the Park family live in a beautiful hillside home in an upscale suburb.
There they are pampered by numerous staff members. It’s a life many of us would covet.
The Kim family, on the other hand, live in an overcrowded underground apartment.
From their hovel, they scrounge up low-paying “gig economy” jobs in order to survive another day of lower-middle-class life. Not much to envy there.
As the movie progresses, the Kims con their way into the Parks’ home and get hired on as tutors, maids, and other servants.
Events … escalate from there. While describing the plot further would spoil things, it’s safe to say that Bong Joon-ho, Parasite’s director and cowriter, is delivering a message about the tension between rich and poor.
About wealth inequality.
In South Korea, the top 1% account for 12.2% of all income.
That may sound unfair, but it’s not bad in the global scheme of things.
In the United States, the top 1% make up about 20% of all income … and in Brazil, the richest of the rich hold 28% of the income.
And these numbers refer only to income. If we look at net worth, the gap between the rich and poor becomes truly breathtaking, as the chart below shows.
Here in the U.S., the top 1% controls more than 60% of the country’s total household wealth.
That wealth gap has grown significantly over the past few decades — and is as big as it’s been since the Great Depression.
Now, I’ve got nothing against the rich getting richer … and I definitely want you to get richer.
That’s why I’m in this business.
But I do believe many of us have fallen too far behind — that the wealth gap has reached unhealthy levels … that there’s too little opportunity for most folks to move up the ladder, no less get rich.
How did this happen? Why have the rich done so well … while so many others are struggling?
Well … one scene in Parasite in particular (don’t worry, it comes early) illuminates the problem perfectly.
Wi-Fi as a Metaphor
The Kim son and daughter hunt through their tiny apartment for a Wi-Fi signal they can piggyback so they can order a pizza. You get the feeling they’ve played this “game” before.
They eventually find a signal by crouching in a squalid bathroom corner.
The father toasts his kids’ success — “to this bounteous Wi-Fi!”
He’s being sarcastic, of course … but in a way, he’s right.
The internet, Wi-Fi, and dozens of other technologies have been “bounteous” for the companies behind all those innovations.
But, as Parasite goes to great lengths to demonstrate, all that wealth has left so many good people behind.
Here’s why …
Thanks to the acceleration of these technological advances, companies can operate with far fewer employees than they used to … yet they can generate even more revenue and profits.
Just consider: Hilton Hotels Corp. (HLT) employs about 170,000 people who helped generate about $9 billion in revenue last year. That’s about $53,000 per employee.
But … tech upstart Airbnb Inc. generates 40 times more money per employee than Hilton! Soon, Airbnb will be making more money than Hilton Hotels … but with a 98% reduction in labor.
In short: The best new companies of today simply don’t need many people compared to companies from a decade or two ago — so while the pay for many employees is soaring, the number of great jobs is decreasing.
The result: The bottom 20% of U.S. households have a negative net worth. Their average net worth is negative $8,900.
That’s why I call this wealth gap the “Technochasm.”
Ultimately, Parasite offers no solutions to this crisis.
It can’t.
There are none.
There’s nothing Washington … or Hollywood … or you or I can do about it.
In fact, I have little confidence that our politicians will even try to create a solution.
But there is a way to make sure you and your portfolio are on the right side of the Technochasm.
There is a way to keep you and your family safe from its wreckage.
And it starts right here, right now, with you.
To make 1,000%+ gains today, you must learn how to take advantage of how rapidly advancing technology is transforming our society.
That’s why my team and I recently traveled to the most expensive ZIP code in America to film a special video presentation about the Technochasm … and about how investors can keep from falling further into it.
Remarkably, while there, we suffered our own personal wealth gap “metaphor.”
While having dinner in one of the nation’s most expensive neighborhoods, someone smashed the windows of our SUV and stole thousands of dollars’ worth of video equipment on a busy, well-lit street.
“It’s happening all the time now,” the responding police officer told us. “There’s a break-in boom here in Silicon Valley.”
Truly incredible.
Now, within our brand-new presentation, I’ve included not only all my research on the Technochasm … but also my plan for making sure investors don’t fall further behind.
