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Could you clarify how the investment and job creation arguments fall flat? My view is that invested money does not magically compound: While invested cash may
by rmellow 10y ago
Could you clarify how the investment and job creation arguments fall flat?
My view is that invested money does not magically compound: While invested cash may be directly applied to financial instruments, the amount invested changes hands many times, and generates extra liquidity in the market, and will eventually, indirectly be spent on the Real Economy endeavours, where it will generate productive jobs.
If these endeavours are successful, they will generate dividends for those participating in the endeavour's risk. Ultimately, those guys who have no idea of the effects their "purely financial" investments had on the market, are indirectly paid by the real economy.
All of this of course considers a fair playing market, which does not happen in practise: Manipulators are parasitic and should be combatted.
Not being sarcastic: Please tell me where I'm wrong.