3 ms·
The problem is that you can't push policies that force investors of any size, individual or institutional to make bad investments because the alternative to inv
by andrewmcwatters 5y ago
The problem is that you can't push policies that force investors of any size, individual or institutional to make bad investments because the alternative to investing in poor yield or overvaluation might be punitive. But that's precisely the duality of the US market right now.
If we had policies in place that basically eroded people's capital and they just had to deal with it because the market was overvalued or yields were so low they're below inflation, you do nothing to uphold the confidence of investors.
At that point, they'd literally be better off divesting from the US market and lifting up foreign markets than dealing with a reduction in effective capital from inflationary forces.
You'd just be encouraging empowering other nations, and we already do plenty of that by offshoring labor and making it more difficult for us to to pay off debts by removing the flow of capital locally.