The Effect of Money on Social Debt

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The more money people have, the more social debt they tend to be burdened with. Once you accept that having the nicest home in your social group is actually your goal, it becomes an obsession. Henry David Thoreau once explained, quote, the cost of a thing is the amount of what I will call life, which is required to be exchanged for it immediately or in the long run.

I think there’s an “ideal” net worth for everyone, when money not only stops bringing pleasure but becomes a social liability. And that number is probably lower than most people think.

A subtle problem with money is that assets are easy to measure but liabilities can be hidden. Measuring assets is simple. But how do you measure losing your privacy? Or the nagging doubt that some friends only like you for your money? That’s way harder.

My theory is that the more money people have, the more social debt they tend to be burdened with.