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Buying low, selling high does produce economic output. It funnels money into causes that generate economic output. If you are able to buy low and sell high you
by mewpmewp2 3y ago
Buying low, selling high does produce economic output. It funnels money into causes that generate economic output. If you are able to buy low and sell high you must have some ability to tell the promise of something and if you buy low you are making the promise be more efficient.
There's a vector of progress in some direction and you are deciding the direction by choosing what you are investing in.
And if you are using other people's money you are just increasing the power of the vector in the right direction by more than you could have on your own. So if you have that ability, it's a very wise thing to do.
Money is a tool to organise/decide where the direction should be at and magnify that direction.
- Grimblewald 3y agoMarket forces only work when no individual or even large groups of individuals control enough capital to influence market trends, the problem is because of the dismantling of capital gains taxes etc. we have exactly that. We live in a state of affairs where individuals own over 80% of rental properties in entire suburbs. They can then do whatever they like with rent, since there is no such thing as market forces in those areas. They then collude with similar individuals in surrounding areas and create an unregulated monopoly. How do you propose that is beneficial?