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I don't think you deserve to be downvoted, but consider the implications of this worldview: no one would rationally invest in any business venture that they mig
by lr4444lr 7y ago
I don't think you deserve to be downvoted, but consider the implications of this worldview: no one would rationally invest in any business venture that they might not live to see come to fruition, and that higher wealth to invest correlates with being older.
- denzil_correa 7y agoThe other implication would be that people genuinely interested in a cause would invest money in such beyond lifetime business ventures. That could fix some of the perverse incentives with such ventures.
- jackpirate 7y agoThis is simply not true under any standard definition of "rationally." You are assuming a loss function that values only growing the wealth of your family, whereas many other people have different loss functions that lead to different rational behavior.
- lr4444lr 7y agoI never said families, nor did the OP: just that being able to make decisions, protected by law, as to who receives your assets after you die is a desirable thing for long-term productivity. Name 1 other "loss function" that would scale society-wide. Even the charitable impulse requires that there be well established businesses at which the recipients can spend and benefit from the money, businesses which take a lot of time to build without seeing a return on investment.