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How does wealth concentration tie into the report's findings? What I saw was that most of the small businesses in the JPM report are operating on margins of a
by lainga 7y ago
How does wealth concentration tie into the report's findings?
What I saw was that most of the small businesses in the JPM report are operating on margins of a few dollars a day. That might be the consequence of competition, driving down prices; or, maybe broadly high confidence in market stability -- whether reasonable or not -- lowering the level of caution small business owners thought they needed to take. But I'm not sure how it relates to wealth concentration.
- Mathnerd314 7y agoAs I see, it means small businesses are getting squeezed too, just like poorer individuals who also have small cash buffers. It's possible to interpret this as economic efficiency, but it is efficient in the same way communism is efficient, i.e. efficient at misallocating resources. Tight budgets are like tight rubber bands and if there's enough stress something will break. I think that's enough terrible analogies, you get the point.