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I'm not sure I would use the word "interesting" it is more likely "illuminating" :-) But word selection aside, one of the problems that money brings is that it
by ChuckMcM 8y ago
I'm not sure I would use the word "interesting" it is more likely "illuminating" :-) But word selection aside, one of the problems that money brings is that it is a concrete number, and thus susceptible to being coerced into being a "score." This is particularly true when you have people who are insecure about their value, they might get it into their heads that the person with the highest "score" has the highest value. As the author points out that isn't a horrible place to be, it helps the economy, but it does become toxic when a person uses consumption to advertise their score relative to other people. (It becomes tragic when someone borrows to spend consumptively in order to present the illusion of having a higher score).
One of the examples of how broken this can be, is that of creating a company (with some paperwork and about $1,500 you can do this easily in California), then issuing yourself 5 billion shares in the company (also easy to do, just register them with the SEC), and then "sell" 20 of your shares to a friend of yours (who is a qualified investor :-)) for $20 to establish a "market value" for your shares. And Poof! you are now "worth" $4,999,999,980 by virtue of the "value" of the shares you still hold, you are a billionaire! And you only need to pay the $850/year to maintain your corporation's status.
So who wants to be a billionaire right? And what does that mean? You have a high "score" but you don't have any real wealth. You can't really sell a billion shares for a billion dollars. That isn't going to happen right?
So now people play this game in the crypto coin market, creating a coin nobody will actually use, giving them selves a bunch of it, and selling some to speculators to establish a story about what that coin is "worth." What does it mean really? Not a thing.
- b0bby_tabl3s 8y agoWealthy people understand how money 'works'. It never has a 'concrete number' ;-)
- r00fus 8y agoI wonder if taxing stated wealth (even if at a miniscule percentage) would help avoid insane/gamed valuations.
- nostrademons 8y agoYou get other sorts of gaming. Property taxes function like this, and there's a whole industry around avoiding re-assessment, getting assessors to low-ball property, etc. right up until it comes time to actually sell the property, when you do a bunch of renovations, get it re-assessed, and try to get the highest valuation you can.