3 ms·
Over the long run, investments beat inflation. A trust with a sufficiently large endowment could survive and grow indefinitely.
by NotYourLawyer 4y ago
Over the long run, investments beat inflation. A trust with a sufficiently large endowment could survive and grow indefinitely.
- rebelos 4y agoYes it could but that still wouldn't have some sort of deleterious effect on the broader system. Money is economic kinetic energy. Assets are economic potential energy. And, by and large, any institution attempting to store and grow wealth through asset allocation will need to conduct continuous exchange operations back and forth between economic kinetic energy and economic potential energy, which is another way to describe investing. This is, of course, a useful activity because it facilitates the transmutation of human self interest into productivity and social value. And, to the extent that such a system gives rise to negative externalities, it is the job of government to correct for that.
- bombcar 4y agoIf that were true then eventually it would be worth more than all everything ever, which is clearly impossible. At some point something would hamper or destroy it.
- NotYourLawyer 4y agoHuman nature, usually.