If one were to invest $24 dollars and get 6.3% interest, in 400 years the investment would be worth $1,000,000,000,000 or approximately the value of all real estate on the island of Manhattan.
On May 4, 1626 a tribe of Native Americans "sold" the island of Manhattan to Peter Minuit of the Dutch West Indies company for $24 worth of glass beads and other trinkets.
Some people claim that the "real value" of the trinkets was $1150. If so, then one would need a return of 5.3% interest compounded over 400 years.
As everybody who ever dabbled in real estate learns: Location. Location. Location.
5.3% and 6.3% interest is not crazy-high, especially with technology growing and a continent being opened up just west of one of the greatest harbors in the world.
The Native Americans did not get cheated. If anything, the Native Americans cheated naive Peter since the island was probably used by several bands of the Lenape tribe.
The island was used mostly as a garbage dump and was not necessarily "owned" by any tribe or clan.
ReplyDeleteUp here in Canada all those red $%^^&* do is drink their faces off, complain, and claim that everything in Canada belongs to them. They literally get free food, free housing, free medical, free dental, free education and preferential treatment at hiring time if they can be sober enough to work.
ReplyDeleteFactor in the problems with crime, drugs, arson, incest, rape, murder... and as far as I am concerned they can cry me a river.
That’s everywhere Glen, it’s the sociopathic white man influence. A 100, 200, 500, thousands of years ago they were fantastic stewards of the land. Those same white men are the ones coming after us today, and I mean all of us.
DeleteSelling the land probably meant getting the use of the area without getting an arrow in the back. William Penn's famous Walking Purchase was similar. The Cherokee sale of Kentucky land to settlers was not recognized by the Seneca who hunted there but lived in Ohio. In the end, Buyer and Seller beware.
ReplyDeleteAgree with Gerry on this one!
ReplyDelete