This is a portion of a documentary that I made for Fidelity Financial Management back in 1994. At that time, so many people were talking about how glorious the 1980s were in terms of how much money people were making.

The ‘80s are referred to as the "decade of spending" for several reasons that relate to significant economic, cultural, and political shifts happening globally, particularly in Western countries like the United States and the United Kingdom.

The era was marked by the economic policies of leaders like President Ronald Reagan and Prime Minister Margaret Thatcher in the UK. These policies, often referred to as "Reaganomics" in the U.S. and "Thatcherism" in the U.K., emphasized deregulation, tax cuts for the wealthy and a reduction in government spending on social services. But military spending increased significantly under Reagan's administration, contributing to the notion of the 1980s as a period of substantial spending.

The ‘80s saw a significant rise in consumer culture, fueled by advances in technology, the proliferation of credit cards, and aggressive marketing tactics. This era witnessed the introduction and popularity of personal computers, video game consoles, and the VCR, all of which became symbols of status and modernity. The availability of credit made it easier for people to spend beyond their means, leading to a surge in consumer spending.

The decade experienced a significant boom in the stock market, with the Dow Jones Industrial Average reaching unprecedented highs. This financial euphoria was partly driven by deregulation which encouraged more speculative investments and led to a culture of risk-taking among investors and corporations alike.

The 1980s also saw explosive growth in real estate markets and a trend towards leveraged buyouts (LBOs), where investors borrowed large sums of money to acquire companies, often leading to excessive corporate debt. This financial strategy contributed to the image of the 1980s as a time of lavish spending and financial recklessness.

Popular culture in the 1980s, with its portrayal of wealth, excess, and opulence in movies, television shows, and music, further cemented the decade's reputation as one of spending and extravagance. Television series like "Dynasty" and "Dallas" epitomized the luxurious lifestyles of the rich, while the film "Wall Street" captured the greed and excesses of the financial world.
Here are the average savings rates as a percentage for the USA.
USA
• 1980s: 10.35%
• 1990s: 9.13%
• 2000s: 6.8%
• 2010s: 6.6%
• 2020s (up to 2021): 7.95%

Peter Lynch, shown in this video, was a highly respected figure in the world of finance. He managed the Fidelity Magellan Fund from 1977 to 1990, during which time he achieved an annual average return of 29.2%, making the fund the best-performing mutual fund in the world.

Lynch is also well-known for his investment philosophy, which emphasizes investing in what you know, a principle that suggests individual investors should invest in businesses they understand or have direct experience with.

Lynch's concept of "invest in what you know" encouraged countless individual investors to engage more actively with the stock market by focusing on companies whose products and services they use and understand. His ability to demystify the investment process and encourage a proactive approach to investing has left a lasting impact on the investment community.

Jeff Vinik also in my video was a prominent figure in the finance industry, best known for his tenure as the manager of the Fidelity Magellan Fund from 1992 to 1996. Taking over after Peter Lynch, Vinik continued the legacy of one of the most watched mutual funds in the United States, achieving notable success during his management period.

Beyond his achievements in the financial sector, Vinik has made substantial impacts in sports and real estate. He is the owner of the Tampa Bay Lightning, a National Hockey League (NHL) team, and has been involved in major real estate development projects in Tampa, Florida. These ventures aim to revitalize the city's downtown area, indicating Vinik's commitment to community development and economic growth outside of his financial career.

Vinik's philanthropic efforts are also notable. He and his wife, Penny, have been active in charitable causes through the Vinik Family Foundation, contributing to various initiatives focused on education, health care, and community development. Jeff Vinik's career trajectory showcases a successful transition from finance to broader business and community engagement, highlighting his versatile skills and interests beyond the investment world.