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This is wrong. The rich people are stiffling the economy and displacing a large swath of working people. This process will hollow out the economy and produce m

by samiv 1y ago

This is wrong. The rich people are stiffling the economy and displacing a large swath of working people. This process will hollow out the economy and produce more poverty and more inequality. For the wealthy people there are two ways to invest. 1. Invest in passive assets such as stock market, property, valuable items, gold etc. 2. Invest in new businesses. What are they doing? Mostly 2. How do we know. Simple.. look at the real economies. The western economies are growing (barely) at around 1-2% per year. The wealthy (since pandemic) grow their wealth at 10-20% per year. Where is this growth coming from? Certainly not from new business development since the real economy is not growing. The only way it can come is by taking a bigger slice of the pie, i.e. displacing middle class by subsuming their wealth. This is harmful to the economy and will lead to the collapse of the economy and the society.

GardenLetter27 1y ago
You are right that the problem is a lack of economic growth - and that is what must be addressed, e.g. by removing bureaucracy and harmful regulations. Robert Zubrin's The Case For Nukes is a great book on this.
- samiv 1y ago
  The bureaucracy and the regulation isn't the problem by and large. If anything it just needs to be easier and more automated to navigate the regulation when setting up business. I know that the capitalist really like to sing this song. "It's the regulation, just let us self regulate and we'll create so and so many jobs". Yeah, just like they did in the 1800 hundreds. Abysmal working conditions, minimum pay, toxic waste dumping etc. etc. Or how the banking sector has managed to blow up several times since "deregulation" in the -80s by Reagan. 2008 market crash anyone? The problem is that there's less and less purchasing power. Even if you have a proven business case such as hairdressing or serving food your most important asset is a customer base who have money. You start by putting money in the pockets of the people and suddenly all kinds of lucrative markets and business ideas become viable. The regulation is needed to protect the society from all the harmful shorcuts that businesses would otherwise take. Such as poisonous food, toxic waste dumping, ponzi schemes and insider trading etc. etc.
bluecalm 1y ago
>>The western economies are growing (barely) at around 1-2% per year. The wealthy (since pandemic) grow their wealth at 10-20% per year. Imagine you are in Germany: -you have a business that has modest profitability of 4% per year (profit/company value) -your economy grows 1-2% per year -your inflation is 2% per year How much do you expect the company value to increase after a year? Right, it's 8 % - exactly how much DAX (German stock index) grew on average during last 10 years.

by samiv 1y ago

GardenLetter27 1y ago

You are right that the problem is a lack of economic growth - and that is what must be addressed, e.g. by removing bureaucracy and harmful regulations. Robert Zubrin's The Case For Nukes is a great book on this.

samiv 1y ago
The bureaucracy and the regulation isn't the problem by and large. If anything it just needs to be easier and more automated to navigate the regulation when setting up business. I know that the capitalist really like to sing this song. "It's the regulation, just let us self regulate and we'll create so and so many jobs". Yeah, just like they did in the 1800 hundreds. Abysmal working conditions, minimum pay, toxic waste dumping etc. etc. Or how the banking sector has managed to blow up several times since "deregulation" in the -80s by Reagan. 2008 market crash anyone? The problem is that there's less and less purchasing power. Even if you have a proven business case such as hairdressing or serving food your most important asset is a customer base who have money. You start by putting money in the pockets of the people and suddenly all kinds of lucrative markets and business ideas become viable. The regulation is needed to protect the society from all the harmful shorcuts that businesses would otherwise take. Such as poisonous food, toxic waste dumping, ponzi schemes and insider trading etc. etc.

bluecalm 1y ago

>>The western economies are growing (barely) at around 1-2% per year. The wealthy (since pandemic) grow their wealth at 10-20% per year. Imagine you are in Germany: -you have a business that has modest profitability of 4% per year (profit/company value) -your economy grows 1-2% per year -your inflation is 2% per year How much do you expect the company value to increase after a year? Right, it's 8 % - exactly how much DAX (German stock index) grew on average during last 10 years.