The question was “what real value does an investment like this yield for the economy as a whole?”
If I understand your comment correctly then your answer is essentially: it provide no value to society, but few other businesses do either.
To which I largely agree, and is the reason why myself and OP are left frustrated that society spends billions on things to improve arbitrary efficiencies while disregarding the well being of millions of people.
> it provide no value to society, but few other businesses do either.
That’s correct, this one happens to be more lucrative and scalable (revenue increases with capital size, overhead costs are logn) when it works.
Regarding a communication network that alters the terrain for the benefit of very few people, I can see that being frustrating. The business model typically does turn into licensing of the data route and others can benefit.
You decided to understand tangible goods and decided not to understand ephemeral goods.
The value is no less real and the distinction is arbitrary.
The only thing happening here is an uncomfortable relationship with people making money and having complete discretion to acquire more goods and services with that money than others.
HFT has no more or less arbitrary value or merit than any ephemeral software business that you might happen to respect. SaaS, ad tech, data brokering, YC cash burning darling, etc.
Trying to rationalize its utility (“is it providing liquidity or just front running”) is just as much of a red herring.
Its just a business.