2 ms·
Top 1% of capital owners are just mostly very old people with comparatively little income. And their capital is passive and brings no or almost no profit (havin
by anovikov 7y ago
Top 1% of capital owners are just mostly very old people with comparatively little income. And their capital is passive and brings no or almost no profit (having 10M of capital and making 350K of income only 17% of which is income from capital - rest is from work - means abysmal 0.5% average return). It is in fact even less because most people who are top 1% by capital aren't top 1% by income: top 1% by capital is typically someone who bought some land on the cheap in 1950s and turned out lucky now when he's 90 years old, top 1% by income is a 30-year old Hollywood agent, Google coder, or a NYC lawyer.
These people (top 1% by capital) are as far from archetypal "sharks of capitalism" as it gets.
- goatinaboat 7y agoTop 1% of capital owners are just mostly very old people with comparatively little income. Indeed. Someone who bought their house in the 70s or 80s and has now paid off their mortgage and also been contributing to a pension fund for a 40-year working life could easily retire with a “net worth” of $770k. It would be a stretch to count them as “rich”.