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Can you not take on risk? Then you can obtain your own wealth.
by aantix 7y ago
Can you not take on risk? Then you can obtain your own wealth.
- Mikeb85 7y agoIt's nice to think this and there certainly are high-achievers who accomplish this, but Piketty's research relates to the economy as a whole and the entire point is that the economy's aggregate return on capital is outpacing economic growth (r > g). This means even if some do obtain wealth, ultimately there's more losers than winners. Outliers mean little in statistics and economics.
- solidsnack9000 7y agoPart of how returns to capital work is taking on risk and then hedging. Without significant cash (for hedged investments) or control (take care of that risk by dealing with it) taking on a lot of risk is just going to the casino. That’s why index funds work for casual investors and stock picking doesn’t.