The Future of Ownership: Will You Really Own Anything?
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Chapter 1: The Great Reset and Ownership
Are you prepared for a world where you own nothing?
The concept of owning nothing and being content may seem outrageous, but it’s a notion gaining traction among many. According to a Forbes article by the World Economic Forum, we are headed towards a society where our lives revolve around subscriptions, with only the wealthy possessing personal property.
"Welcome to 2030. Welcome to my city—perhaps I should say, 'our city.' I don’t own anything. No car, no house, no appliances, and no clothes. It may seem strange to you, but for us, it’s perfectly normal."
As we delve into the article, the future unfolds like this:
- Privacy becomes a luxury.
- Homeownership is a luxury.
- Clothing ownership is a luxury.
- Raising children becomes a luxury.
The age of ownership is fading, evident in the declining rates of homeownership, the shift to streaming services for entertainment, and soaring household debts. The wealth gap is widening, with the affluent getting richer while the less fortunate face increasing hardships.
Next, let’s examine the impending future of car ownership, which may turn into a subscription nightmare.
This week, BMW revealed they will charge an extra $18 monthly for heated seats in their vehicles, provoking outrage among consumers. South Korea's BMW ConnectedDrive Store offers subscriptions not just for heated seats ($18/mo) and steering wheels ($10/mo), but also for unlocking features like a high-beam assistant and additional safety systems.
Tesla has been leading the way in this trend with their “premium connectivity package,” allowing users to access features like internet browsing and music streaming. By 2030, the landscape will likely include pervasive microtransactions for cars, meaning true ownership will require ongoing payments.
The future of digital ownership is equally concerning.
Did you truly believe you owned that copy of Microsoft Office? In reality, you’re merely paying for access. The same applies to video games purchased on platforms like Steam or Xbox; you don’t own them—you’re paying for the right to play them as long as the servers operate. And the fine print often goes unnoticed. For instance, Steam’s Subscriber Agreement states:
"Valve grants you a nonexclusive, nontransferable, revocable right to use the Software for personal, non-commercial purposes… the Content and Services are licensed, not sold."
Interestingly, NFTs might offer a solution to digital ownership verification, but they still have a long way to go before gaining traction.
The Reality of Homeownership
Owning a home has always been a challenge. Houses are costly, often leading to buyer's remorse due to upkeep, taxes, and mortgage interest. However, overcoming these hurdles can lead to generational wealth and an escape from the instability of renting.
- No longer subject to rent hikes (which are soaring in cities like NYC).
- Potential for a return on your investment.
- Long-term appreciation of real estate.
- Ability to rent out your property and earn passive income.
Unfortunately, these advantages are slipping away as we enter the "Great Reset." The dream of homeownership is becoming increasingly unattainable, primarily due to banks snapping up properties.
Blackstone, a powerful investment management firm, is a key player in driving working families out of the housing market and into rentals. Currently, they control over 80,000 homes as the largest single-family rental company in the U.S. In 2022, Blackstone plans to invest $6 billion to expand its single-family rental portfolio, often paying above market prices. Consequently, home prices will remain high, leading to increased monthly payments and financial strain for many.
To understand the trajectory of homeownership in America, we can look at Japan, which faces similar challenges. Canada also exemplifies where the U.S. might be headed, with home affordability in cities like Toronto being worse than in London, England.
Economic powerhouses like Blackstone and BlackRock can absorb losses from inflated home prices without facing repercussions, as seen in the 2008 financial crisis where banks were bailed out.
The Concept of Ownership Will Evolve
By 2050, the notion of ownership may be entirely obsolete. We, as average Americans, are allowing this to happen by accepting it.
There's a prevalent misconception regarding pricing in today’s economy. Prices are often dictated by how much people are willing to pay rather than the actual production costs. This dynamic is why houses can be built for $700,000 yet sell for $100,000,000, and why shoes manufactured for $30 can retail for $300.
Subscription models aren’t just a clever way to extract more money from consumers; we are complicit in this trend.
And remember, you will be happy.
In the short term, it may seem enjoyable: affordable credit, instant access to entertainment, and the illusion of ownership. However, in the long run, we risk surrendering rights and privileges that would shock the average American from 1958.
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Chapter 2: Perspectives on Ownership
In this video titled “You will OWN NOTHING, and you will be HAPPY” by Douglas Kruger, the implications of this concept are explored, offering insights into its societal impact.
The second video, “WEF - You Will Own Nothing And Be Happy?” discusses the World Economic Forum's views on ownership in the future, highlighting critical perspectives on this topic.