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This isn't much of a surprise. Previous large-scale disasters often destroyed capital. During the Blitz, bombs blew up factories. COVID leaves physical capital
by munificent 6y ago
This isn't much of a surprise. Previous large-scale disasters often destroyed capital. During the Blitz, bombs blew up factories.
COVID leaves physical capital almost entirely untouched. It is most harmful to people and in particular the poor who often work "essential" (but undercompensated) jobs, those without healthcare, and small business owners. National restaurant chains can ride it out while sole owner ones with less cushion fold. Small stores die while everyone flocks to Amazon.
The pandemic is essentially a net transfer of power to the rich. The stock market is an index of the rich—the wealthiest 10% own 85% of all stock. Of course it's going up.
- hn_throwaway_99 6y agoYeah, I feel like we're realistically far from "eat the rich" land, but I do feel like society is being pushed closer and closer to the precipice. I mean, just take a look at pg's wealth tax post, which while I won't necessarily say was "tone deaf", it was at least woefully out of touch IMO: "You can't add a wealth tax, founders will go elsewhere!" If we don't figure out how to more equally distribute the rewards of capitalism, we may find there are very few people left to buy the goods founders want to sell, unless we all want to do high-end art marketplace startups.
- deleted 6y ago[deleted]
- cryptica 6y ago>> I feel like we're realistically far from "eat the rich" We could have a financier as a main course as well as a dessert.
- perl4ever 6y ago>If we don't figure out how to more equally distribute the rewards of capitalism But trillions are being redistributed and that is why the stock market is up. Creating money out of nothing is a wealth tax.
- munificent 6y ago> If we don't figure out how to more equally distribute the rewards of capitalism We actually have figured it out. It's called "taxes". Taxes are how you do it. There, mystery solved. The problem is that the rich have reached a level of power —through Citizens United, Fox News, disenfranchisement, and just straight up getting richer—that they can prevent taxes that harm them but would benefit the majority of Americans.
- axaxs 6y agoThat's a bit of a simplification. Fact is, real estate is at or near peak as seen by slowing prices. The interest rate for any money vehicle is near zero. The stock market is the only place to stash it.
- cryptica 6y agoAlso, banks tightened lending standards for real estate (commoners). My guess is that they didn't do the same for corporations. So all the money went to corporations... Probably stock buybacks; so it went to shareholders; tax-free too; and even when the shareholders decide to sell, they'll only pay capital gains tax, which is lower than income tax. The stock market is a scam. A the biggest pyramid scheme the world has ever seen. CEOs who understand how the system works and willingly participate in it are criminals.
- zzzzzzzza 6y agothe underlying asset of the stock market is in large part real estate/property.