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The accredited investor rules are in place to protect people who can’t bear the losses from an extremely adversarial financial system. I promise you that even i
by jakelazaroff 5y ago
The accredited investor rules are in place to protect people who can’t bear the losses from an extremely adversarial financial system. I promise you that even if you get rid of the rules, people with a few thousand dollars to spend still would not have access to the best investments.
- datadata 5y agoI believe that every financial transaction has the potential to be adversarial, there are many ways outside of investing that the poor are disproportionately exploited (lotteries, debt interest). I think the libertarian perspective is that we shouldn't have protections that prevent people from making personal choices that result in harm to themselves, but only from harming others. I think that transparency for the companies seeking investment, or education of the investors themselves are better ways to restrict investment. Net worth/Income is not a fair criteria.
- kyleplum 5y ago> I think the libertarian perspective is that we shouldn't have protections that prevent people from making personal choices that result in harm to themselves, but only from harming others. There are a few ways that someone bankrupting themselves via bad investments does hurt others: Dependents will be significantly harmed They are more likely to end up homeless or in jail on the dime of society They are less likely to be a productive member of society. I suppose the libertarian response would be that if someone bankrupts themselves, let them die homeless on the street - but I don't think you'll get agreement from any significant portion of society on that approach and even then someone has to pay to clean up their body.