By Shelburne, Vermont Financial Advisor Josh Kruk
October 28, 2021
My grandfather was born in Russia. During World War II, he was put in prison someplace in eastern Europe (Poland, I think). He escaped and walked for ten days to get home while eating whatever he could find along the way. Eventually, my grandparents made it out of Europe and settled in Brooklyn, which was much less gentrified than it is now. My dad didn’t exactly have an ideal childhood there, but it was enough so that was able to put himself through college and give my brother and me a better shot than he had.
To borrow from Isaac Newton, so many of us who find ourselves fortunate today can say that we got that way by standing on the shoulders of giants. Even parents who have a great life themselves usually hope their kids have an even better one. At a micro level, ambition, drive and sacrifice can help make that happen.
As we’re seeing now, it can be a little more complicated at the macro level. Since our kids and grandkids will bear the brunt of the negative impacts, climate is an area where some generational sacrifice would go a long way. But the climate is basically a public asset, and as with most public assets, elements of subsidization and “you first” inertia exist. Why should Country A sacrifice when Country B refuses to? Why should I change my lifestyle while the people next door drive four SUVs and get Amazon deliveries six nights a week?1
One way to turn a macro issue into a micro issue is through basic economics. We are starting to see both the free market and governments globally create incentives that will alter individual behavior, albeit more slowly than what is needed.
In the meantime, how do we put future generations in a better position? Maybe the best approach is to try to bring it back to the micro level. As a society, we’ve probably become too entitled, too comfortable, and too addicted. But we have control over our own behavior, including what we buy, how much we consume, and how we invest. Looking in the mirror, I have a long way to go in some of these areas myself. Trying to include my own kids’ future in the decisions I make every day makes it at least a little harder to take the easy way out, and iterative progress is better than none.2
1. This is hypothetical. The people next door to me don’t actually do this.
2. Actually, in some ways, young people are setting a better example for their parents than the other way around. But that’s a topic for next time.