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I guess I'm missing what it is to disagree with. Are you arguing that people with good ideas should simply be entitled to the capital to pull them off, to avoid
by acjohnson55 8y ago
I guess I'm missing what it is to disagree with. Are you arguing that people with good ideas should simply be entitled to the capital to pull them off, to avoid the need to compete in capital markets?
- annabellish 8y agoI mean, sure, that'd be great. I think it'd need one heck of a societal overhaul to achieve, though. If we wanna keep it in terms of a capitalist market, the problem is that investors are essentially selling a service just like anyone else, but because wealth inequality is where it is, there's relatively little competition in that "market". Thus, what you get is very high "prices" for relatively poor "service". This is a problem. In an ideal free market, investors are just another kind of business, and would compete both on price and their offering such that everyone was getting a good deal and everything moved along efficiently. In the real world, investment is a very concentrated market, meaning that the deals are shoddy and inefficient.