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you don't destroy the house, you transfer it from investors to employees, largely executives. reason is, the "loss" isn't cash outflow, it's from compensation
by nerfhammer 9y ago
you don't destroy the house, you transfer it from investors to employees, largely executives.
reason is, the "loss" isn't cash outflow, it's from compensation by creating stock, which investors pay for via dilution.
- CobrastanJorji 9y agoI'm not suggesting the wealth actually is being destroyed in this case. It's a mental heuristic for comprehending large amounts. A billion dollars isn't an amount of wealth that has any real meaning to my brain compared to things that happen in my life. On the other hand, I have a very real and personal understanding of about how much a house is worth. From that, it's reasonable to get a gut understanding of an amount of cost by imagining houses being destroyed at a certain pace.