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> any normal person with any financial savvy knows that market returns are much better than deposit returns And, if I understand the arguments, that's confirm
by pjmorris 8y ago
> any normal person with any financial savvy knows that market returns are much better than deposit returns
And, if I understand the arguments, that's confirmed by Piketty's r (return on capital) > g (economic growth rate). My concern is that more money is getting tied up in chasing financial assets than in the real economy (houses, hamburgers, cows, etc.) If you have financial assets, that's good. If you don't, that's bad. Most people don't have financial assets. Sooner or later something's going to correct that trend. It'd be better to find a non-violent solution.
- perl4ever 8y ago"Money" isn't resources. It's just numbers in databases. The whole point of financial assets is so that real resources don't get tied up, so I think your outlook is totally backwards. If people don't understand this and get violent, it will just be another civilization destroying seizure, signifying nothing.
- sdhgaiojfsa 8y agoYou do not understand correctly. r vs. g has little to do with the return of debt vs. the return of certain classes of securities (since neither is pegged to economic growth). Rather, the return on deposits and the return on stocks are both part of a composite (r) that is meant to be greater than g.