The British ruined their social security system by allowing citizens to invest. Majority of people in america and around the globe don't know enough to invest , while some may have the concept, very little know how to spot a worthy stock from a high risk one. Americans like most people need someone to invest for them or are better off dumping money long term in an interest return account at a bank or credit union.
I think that the average American is not prepared for the complicated financial market products and does not have the ability to make investor-like decisions. Now-a-days the financial markets are populated with sophisticated products and alternative investments and specialised knowledge and detailed information are required for investing in them. Usually, individual investors are poured with scientific financial projection models data and complicated market analysis, which are above the average outsider/ individual investor knowledge limits .
I doubt that most Americans truly have enough knowledge about how the stock market wirks to make a sound investment. The stock market is enticing to people because it dangles the promise of making you large amounts of money without much work. I think that because of that many people rush into investing without doing the proper amount of research first.
We would like to believe the average family household has at least one parent that went to college and that all participants graduate high school with a full education. However, this isn't exactly true for the "average" American family. While there are millions that are capable of investing in the stock market successfully, I would say most families aren't any more capable of investment then they are of smart credit card use.
The average doesn't know anything about the real workings of the stock market, let alone enough of the basic to make a good investment. The proliferation of investment advisors over the years has seen to that. Investments have become so complicated and so opaque that even seasoned investors have trouble deciding what to do. How can an average investor have any chance in the market?
No I do not think that the average American knows enough about the basics of the stock market to truly make a good investment. I am definitely an average American and I know nothing at all about the stock market, neither does any one that I know, know anything about it.