5 ms·
They'd work just as well if the expected rates of profit were lower, due to profit taxes. Money is invested because people with money chase yield, if yields ar
by vkou 4y ago
They'd work just as well if the expected rates of profit were lower, due to profit taxes.
Money is invested because people with money chase yield, if yields are positive, but lower across the board, that money would still be making the exact same investments.
- somethingreen 4y agoYea, the stumble is usually at the step of gaining control of the whole board or keeping money in the chunk of the board you control.
- aetherson 4y agoI don't want to sound like an extremist here: reasonable capital gains taxes are on net good. But it's certainly not the case that people make the "exact same" investments with or without taxes, especially of course as taxes get higher. Money will shift out of investment to consumption as expected profits decrease, or indeed out of the tax regime to other areas or to black markets.
- pas 4y agothat's absolutely not a problem, quite the opposite. the goal is to have investments that serve broad interests. instead of investing in better yachts, supercars, jets, etc. instead of investing into Amazon to dropship fake shit for quick bucks our economic surplus ought to go into developing better actually useful appliances, tools, technologies for example, instead of OralB and Philips bamboozling us with sonic this and that with smart AI toothbrush marketing we ought to actually figure out dental care. okay, sure, higher taxes on the wealthy doesn't guarantee more conscious consumerism, but might at least give it a chance.
- aetherson 4y agoI'm afraid that in fact the kind of consumption encouraged by high cap gains taxes are things like yachts, supercars, and jets (which are not investments).
- ianai 4y agoI think those are more about inequality and greed. They have so many resources they’re exhausting any and all passing interest. Bees seem to have solved this with graduating highly productive bees into a bohemian class. They spend their time doing oddball stuff and inform the hive of new opportunities missed.
- tdehnel 4y agoSounds like you’ll be angling for the position of Commissar of Which Things are OK to Innovate.
- rs999gti 4y ago> reasonable capital gains taxes are on net good Except on the middle class. All capital gains do to middle class workers is ensure they stay middle class
- nicoburns 4y agoI’d agree that the won’t made exactly the same investments, but I’d argue that on average they’ll make better ones.
- WalterBright 4y agoThe riskier an investment is, the higher the return must be to justify the investment. Lowering returns across the board means nobody is going to invest in long shots.
- vkou 4y agoWhat else are they going to invest in? Sure things that return net-negative after inflation?
- WalterBright 4y agoThey're going to invest in less risky things.
- andromeduck 4y agoReal estate.
- Llamamoe 4y agoOkay, and... so what? Other than complete lack of sustainability and distribution, humanity has been capable of providing the necessities for every human on earth for a long time now. What use is there in long shot startups that could possibly triumph giving people unalienable access to necessities and free time?