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> The logical conclusion to that would be that everyone wants to be an employee and nobody wants to be an employer. Is that true? If I have capital wouldn't I
by acover 9y ago
> The logical conclusion to that would be that everyone wants to be an employee and nobody wants to be an employer.
Is that true? If I have capital wouldn't I want to allocate it for the best risk/return/effort. That my percentage of the pie is shrinking doesn't mean I would allocate my capital inefficently to accelerate that shrinkage.
For example, imagine today you had 1 million dollars. If interest rates were 0.1% would you say no to that risk free $1000 a year? I wouldn't. I would click that button. Perhaps it would encourage me to spend more but I wouldn't sit on cash.
- arkis22 9y agoI agree that it makes sense to allocate your capital efficiently. A risk free 0.1% doesn't look like you're being an employer though. It sounds like the rate that comes from your deposits at a bank (which lends your deposits to make money, which in some way most likely depends on them getting a higher rate of return on capital than growth in output)