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> What happens to an entire class of working people In a free market capitalist society, the most optimal case is that they spend a significant portion of thei
by hx87 10y ago
> What happens to an entire class of working people
In a free market capitalist society, the most optimal case is that they spend a significant portion of their earnings buying capital (i.e. stocks and bonds), so as time goes on more of their earnings come from capital. Unfortunately, in the USA at least, we make capital accumulation ridiculously hard for working class people due to the cult of homeownership and a tax system where interest on mortgages (but not stock purchases) are deductible.
- pjc50 10y agoHomeownership is capital accumulation. I'm not sure that a system where a large part of GDP is directed at stock purchase is sustainable; that's how private pensions are supposed to work but the system is creaking.
- allendoerfer 10y agoAdditionally, home-ownership has the unique feature to be financed with money which would otherwise be a sunken cost. I like the idea of some kind of modern/virtual self-sustained living, where you own your house, produce your own energy and cover all costs by dividends from stocks of the same companies you buy products from.
- pjc50 10y agoOwnership by the workers of the means of production and distribution! ;)
- allendoerfer 10y agoYep, but actual ownership of a share with the choice on what to own on top of a capitalist base, not forced ownership together with everyone else through a state with corrupt elites.
- hx87 10y agoA home is a massively illiquid and spectacularly undiversified asset, and the same benefits can be gained by, say, investing in a spread-out housing cooperative with a diverse set of owners.