Re:How the 0.001% invest
by pbhjpbhj on Monday December 17, 2018 @11:28AM
(#18699924)
>If the author's explanation of what family offices are is correct, they didn't create inequality. If you take your money from a deposit and decide to invest yourself you don't create inequality. //
If you can afford to invest, and do so successfully, you therefore make money from others labour. As poor people can't do that, any successful investment is contributing to wealth inequality.
In general, if you win on investments someone else is losing.
This means that if having large capital base means you have accessv to better investments - eg avoiding large fees - then you'll drive more inequality.
To recapitulate: There's only a certain amount of wealth generated, if you receive "higher reward" without doing more wealth generation then those generating the wealth are getting a smaller proportion.
If you can afford to invest, and do so successfully, you therefore make money from others labour. As poor people can't do that, any successful investment is contributing to wealth inequality.
In general, if you win on investments someone else is losing.
This means that if having large capital base means you have accessv to better investments - eg avoiding large fees - then you'll drive more inequality.
To recapitulate: There's only a certain amount of wealth generated, if you receive "higher reward" without doing more wealth generation then those generating the wealth are getting a smaller proportion.