3 ms·
yes, slack in the economy (in forms like cash reserves and inventory) provides robustness and resiliency, but our financial sector has mined it for the benefit
by clairity 7y ago
yes, slack in the economy (in forms like cash reserves and inventory) provides robustness and resiliency, but our financial sector has mined it for the benefit of the wealthy and to the detriment of the rest of us. it's yet another reason to revise policy to move us (back?) toward a better balance.
for instance, we need to allow all kinds of businesses to (live and) die, and also provide a robust safety net so people can try ideas big and small without being left destitute upon failure. then they can pick themselves up and try again. capital then flows to find the best ideas because we're allowed to try more of them. instead we get stupid capital gains & inheritance tax rates that mainly benefit the already wealthy and blunt capital's edge.