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Reply to "We lost almost a full percentage in IT workforce count over 9 year period"

The ECONOMIC UNIT is just an abstract representation for many possible economic entities that all have certain things in common. It could be a single person living alone. It could be a family of 4. It could be a hippy commune. It could be a multi-billion dollar corporation.

In some ways you could compare it to a water tank. Water flowing in is income. Water flowing out is expenses. But the tank is not prefect, there is leakage from the bottom which is depreciation. A single man living alone has a job which provides income. He pays rent which is an expense. But he has a car which he drives to work every day. Little by little the car is wearing out, that is depreciation, there is no way to prevent it. Good maintenance may reduce it but cannot eliminate it.

Net Worth = Assets - Liabilities

Actually I don't recall ever hearing the term Gross Worth before. I think that would be Assets. But valuing assets is a somewhat tricky thing. If you have a house to sell it would probably be a good idea to get an appraiser to estimate the value, this will probably cost a couple of hundred bucks, that would be an expense to selling the house. The value of a house can change every few months. Then there is the question of how fast you want to liquidate. It could take months to find someone to pay your asking price, if you need to liquidate in a hurry you need to drop you price. That could cost you $20,000 depending.

People try to pretend economics is very rational, especially economists, but it is actually very psychological. The good players know this and use it. Suckers get taken all the time.

determine at what point in time outliving your assets might become an issue.

Outliving your assets means your children or relatives inheirit. Don't you think people like the Rockefellers make sure their assets outlive them? The worker consumers are supposed to be stupid and not leave anything. We should all know accounting and not throw money away on things that depreciate. I think every automobile manufacturer in the world knows how to make cars that last 30 years. The laws of physics don't change style every year and human beings don't change shape. Redesigning cars is stupid bullsh!t. People act like buying cars is like buying clothes.

I think 80% of Americans should have had their home payed for 20 years ago. The United States should be on a 3-day work week by now. But we have to play these silly status, my car is better than your car, games when all of the cars are underengineered junk designed to fall apart.