Have we largely become a Huckster Economy?

Question

I have been thinking about this for a while, and I was listening to a podcast tonight while I was in the shower and it just kind of brought it around to this thread.

Today, it seems to me, at least in the US, there is a greater proportion of "huckster-ism" in our economy and in the ambitions of the population than in any time that I can remember (I'm half a decade from 60) in my life. I see and hear signs of this everywhere I look, and I like to think it's not just because I'm looking for it.

I'm no pollyanna. I know in any economic system, especially a capitalistic one, there will always be some proportion of people & businesses that don't deal or create anything of any real value. But today I see more of this than I can ever remember in the past, and I see it everywhere. Multitudes of people on BP looking to become rich on real estate by "wholesaling" or "rental arbitrage", essentially folks with no money or assets looking to punch their golden ticket. Dubious, or no value, real estate training courses, books, seminars, etc by people who often have less experience than the people they're "teaching". Syndications that hawk unreasonable returns and unbelievable risks while raking in chunks of fees for the syndicators, sometimes people who have almost no experience or knowledge in the products they're selling.

And that's just what I see on BP. I see it everywhere. I have a grandson who aspires to make his fortune as an "influencer". Making money by getting people to follow his channel, where the only real monetization is due to the fact that legitimate businesses are willing to pay advertising money to place ads where eyeballs will see them. A lot of his friends think that getting a "real job" or creating a "real business" is for chumps. Why would you want to work a real job and save your money when you can do stupid stuff on Youtube, hawk junk products and try to get free AirBnb stays?

Today it seems to me that everyone wants to make their money by being some kind of middleman, syphoning money off the interface. When I tell people about the hard work and long hours it took to rehab all the houses in our portfolio, they look at me like I have 3 heads. We created value by rehabilitating dilapidated housing and renting it out to people in need of quality homes to rent at reasonable prices. It wasn't rocket science. When I was a kid people created businesses by purchasing property and building homes, or renting out space and creating a nice restaurant, things like that. Hucksterism was Amway and Tupperware parties, but everyone knew it. Bringing this back to the podcast, the entire thing consisted of a guest telling people to figure out ways to sell repackaged information to people and generate advertising dollars, which the podcast itself was generating by appealing to people's get rich quick bias.

I'm no Luudite, and I know there's still plenty of things of value being created out there (even if I dislike some of it like AI), but I just find it disturbing to think that a lot of economic activity is just selling nonsense to each other rather than creating products or services of real value.

I'm going to link some people here because I know they'll have smart things to say. And generate some responses here as well. Hey, maybe I can get paid per click from this thread! 😂

@Russell Brazil @Jay Hinrichs @James Wise @Chris Seveney @Don Konipol @James Hamling @Bruce Woodruff @Scott Trench @Jonathan Greene @Shiloh Lundahl @Steve Vaughan  and if I left you off this list it might be because I just couldn't get you tagged properly :)

Jacob Thorpe · Answer

In response to your post

"I am half a decade away from 60" :  Try talking to younger men about their job/dating/life prospects in this new American landscape which has changed dramatically since you were in your earlier 20's and 30's.  You might find an answer to a lot of your questions/thoughts.  I'd recommend truly listening to them before telling them to pull themselves up by their boot straps. For us, walking into an office, making eye contact, and a firm handshake - isn't at all what it takes to find quality employment for a lot of younger guys.

"I know in any economic system, especially a capitalistic one, there will always be some proportion of people & businesses that don't deal or create anything of any real value." Can you describe 'real value'? What is the 'real value' of the American dollar since Nixon ended the gold standard - it is a fiat currency not backed by anything? Is/was their any value in Toys'R us that made childrens toys? Has there been any value by shipping manufacturing overseas, only to be sold on consumerism? I find more value from crypto, wholsalers and podcasts than I do from Black rock and vanguard or the stock market.

"Multitudes of people on BP looking to become rich on real estate by "wholesaling" or "rental arbitrage", essentially folks with no money or assets looking to punch their golden ticket" : I feel as though this was made in poor taste.  I know plenty of people working as wholsalers, podcasters, game developers, YouTubers etc and I am glad they're able to do what they do and be paid for it. On real estate,  I am more than happy to work with wholesalers, and have bought many deals from wholesalers.  If there are young men with the ability to drive around all day, find run down properties, speak with the home owner and negotiate a property getting it under contract and getting that contract to me - than I am more than happy to pay their commission so they can spend 8 hours a day building a portfolio for my and other investors review.

"Dubious, or no value, real estate training courses, books, seminars, etc by people who often have less experience than the people they're "teaching". Syndications that hawk unreasonable returns and unbelievable risks while raking in chunks of fees for the syndicators, sometimes people who have almost no experience or knowledge in the products they're selling. "  : I can't exactly speak to what you're trying to say here, I have paid for plenty of courses, paid for plenty of books and seminars. At each of these purchases I was able to gain knowledge and networking and access to new opportunities. Some were duds and I had felt mislead, but that is the price you pay for knowledge in a dynamic and changing information driven world we live in. Eventually you get good at sussing out what's worth buying before you pay.

"And that's just what I see on BP. I see it everywhere. I have a grandson who aspires to make his fortune as an "influencer". Making money by getting people to follow his channel, where the only real monetization is due to the fact that legitimate businesses are willing to pay advertising money to place ads where eyeballs will see them. A lot of his friends think that getting a "real job" or creating a "real business" is for chumps. Why would you want to work a real job and save your money when you can do stupid stuff on Youtube, hawk junk products and try to get free AirBnb stays?"  That's good, I am proud to see you're grandson is smart enough to see how the world is changing.  Would you suggest he should he spend four years at a college with the slim chance that might turn into working a company job, competing with H1B applicants for employment, to eventually 20 years later of saving to maybe flip burgers at his own establishment in competition with Mcdonalds?  Maybe he spends 20 years working for a corporation then should he build a machine shop in your garage and start a tool company and compete with Milwaukee Tools? Should he sacrifice 2 or 3 decades of his life in the hopes that maybe, someday, he might "make it" on his own? He has already the advanced knowledge that that worldview your generation was sold on is a lie. The 'system' is not there in anyway to benefit the common working class man and there is no way in hell he alone is going to take on the likes of private equity, corporations, hedge funds - there is no way he is going to out compete indians or the Chinese in the labor market. He has at his disposal a computer (capital) and is using it as a means of economic generation (labor)  which is smart and he has direct access to a community of millions of people by using YouTube (entrepreneurship ability) so your grandson who you scoff at, at his young age, already is understanding the key components to any economic endeavor and he probably learned it from listening to podcasts or watching other content creators.

It is normal to admit to the alienation you may feel to the dynamic and changing marketplace especially if you have spent decades mastering older more traditional frameworks which are no longer relevant. Economic incentives have shifted away from the skills and ethics you were most likely raised with, and your grandson is adopting what is modern and required for future success. Also, in a world driven by conglomerates and private equity the idea he is going to create anything of value in his garage(your garage since the likelihood of him owning a home without family help is slim) , like a Model-T, are highly unlikely or out right restricted by the government as our world today is also over regulated or over licensed. If he is able to create anything on his own it most likely will be in tech, mirror a 'huckster valueless app' and more than likely the creation will be assisted by AI. If it found any success, its likely he would sell it to a major tech company like Google, Facebook, etc only after he had 'huckstered' the app to early adopters.

"Today it seems to me that everyone wants to make their money by being some kind of middleman, syphoning money off the interface. When I tell people about the hard work and long hours it took to rehab all the houses in our portfolio, they look at me like I have 3 heads." What was the interest rate on the majority of your portfolio while you did this? Was it pre-2008? This is a place where I can slightly agree with you. The rules are changing but hard work, integrity, and consistency are still virtues that will make all the difference. Although, it will also take the understanding of being your own brand, social media, marketing, sales, AI - the workload has definitely changed. Access to information has changed. I'd challenge you with a Darwinian question and ask if you are putting in the hard work at adapting to a new landscape? what will happen if you don't? Chances are you probably don't have to if you've acquired a massive rental portfolio when loans were at 3% and required no more than a pulse to get them.

"I just find it disturbing to think that a lot of economic activity is just selling nonsense to each other rather than creating products or services of real value." Consumerism has been a driving force behind the economy since you were born, and it continues to shape the younger generation’s spending and business habits. What’s changed is the form. it takes new technologies, trends, and marketing strategies. so it might feel more chaotic or superficial than it did before. In real estate, e-commerce, whatever.. there is, regardless of the age, always going to be snakeoil sales men and Tupperware salesman, or now the modern e-course motivational salesman like Wes Watson or Andrew Tate.

Ultimately, the economy and the ways people create value have changed dramatically over the decades. While the fundamentals of hard work, integrity, and consistency remain timeless, the tools, platforms, and strategies required to succeed today are very different from what many may have learned in previous decades.

Understanding and adapting to these shifts is key—not just to survive, but to thrive. There is an easier access to information, so gatekeeping isn't working anymore. think of apps like Zillow or  "Listing spark" that are replacing real estate agents. There is AI now which can create campaigns, content, websites, CRM's so getting a product to market is a lot faster, easier and cheaper than it ever has been before.  Social Media has allowed for faster and easier networking capabilities.  Information technologies, AI, social media, these are an extra layer added on top of timeless skills like honor, dependability, integrity and entrepreneurship prowess.

You can choose to be like the dodo or the crocodile. I wish you the best.