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Shuffling money around is absolutely an important part of the economy. It moves resources from unproductive or low productive companies to higher producing com
by loudmax 6y ago
Shuffling money around is absolutely an important part of the economy. It moves resources from unproductive or low productive companies to higher producing companies. The name for this activity is called "Capitalism".
One could argue that Warren Buffet should pay higher taxes. And he would agree! But unless you find capitalism itself unethical there is nothing wrong or underhanded with searching for undervalued firms and investing in them.
- JackFr 6y agoI agree in general. My biggest complaint is that that instead of paying higher taxes Warren Buffet could maybe not jawbone Congress into bailing out AIG. AIG should have gone bankrupt and Goldman Sachs (and their other counterparties) should have borne that pain, and possibly gone bankrupt themselves. Instead Warren Buffet refuses to come to the rescue of AIG, comes to the rescue of GS, and then tells Congress that the economy will freeze up if AIG and other banks aren't bailed out. That is not efficient allocation, that's crony capitalism.
- loudmax 6y agoAny private citizen has a right to jawbone Congress. By itself, that isn't a problem. What is a problem is that congressional representatives are enormously influenced by donations to political campaigns. Even if they lose a reelection there's a whole industry in place to put them into cushy jobs if they've followed their party line. And the party line is to do what the campaign donors want, not necessarily what the constituents want. That is a problem.