Net Worth Wealth: For All of Us
Monday, March 17th, 2008By: Robert F. Abbott
I see in a news story that the net worth of the average Canadian is now a whopping $165,400, more than ever before. The statisticians got that number by taking the country’s total assets of 5.5-trillion dollars and divided by the number of people in the country - - 30-million and a bit.
We could argue all day, of course, about whether that’s an accurate figure or not. And, people on the left would no doubt raise some sort of convoluted clash of classes argument, and demand more redistribution of wealth.
But, leave all that aside while we reflect on how far we’ve come over the past two hundred years. At least those of us who live in and whose forefathers lived in what has become the developed world.
Few of us know, apparently, that until the beginning of the Industrial Revolution our forefathers had an average net worth that was very near zero. They lived on the edge, so to speak, never sure when a famine or some other catastrophe might literally kill them and their families.
Like residents of poor countries today, there were no social safety nets then, except perhaps the kindness of neighbors. Of course, there’s a good possibility that the neighbors might be suffering through the same catastrophe and unable to help.
It’s also worth noting that before the Industrial Revolution, there was little communication and little transportation between towns just a few miles apart. That meant one town could be undergoing famine while another town a short distance away was enjoying bountiful harvests.
The average net worth of the people in your country may be greater or less than that of the average Canadian, but if you live anywhere in the developed world, you are undoubtedly far wealthier and far more secure than our forefathers of just a few hundred years ago.
You’re reading the commentary section of People, Profits, & Pensions. There’s also a book section, where you can read excerpts from my forthcoming book by the same name, visit http://www.people-profits-pensions.com . In addition to reading, you can also be a book critic and give me your thoughts on what you’ve read.
