Re:U.S. stock market returns – a history from the 1870s to 2022
by JumpCrisscross on Friday January 06, 2023 @01:51PM
(#34279109)
> GDP is growing at a slower rate than this
Over what interval are you observing this?
Re:U.S. stock market returns – a history from the 1870s to 2022
by fallingfrog on Friday January 06, 2023 @02:20PM
(#34279510)
Re:U.S. stock market returns – a history from the 1870s to 2022
by nazgulnarsil on Friday January 06, 2023 @02:03PM
(#34279280)
enerational wealth diffuses in 3 generations iirc
Re:U.S. stock market returns – a history from the 1870s to 2022
by fallingfrog on Friday January 06, 2023 @02:17PM
(#34279451)
That's the basic premise behind Piketty's book "Capitalism in the 21st Century". From wikipedia:
"The book's central thesis is that when the rate of return on capital (r) is greater than the rate of economic growth (g) over the long term, the result is concentration of wealth, and this unequal distribution of wealth causes social and economic instability. Piketty proposes a global system of progressive wealth taxes to help reduce inequality and avoid the vast majority of wealth coming under the control of a tiny minority."
Given GDP is growing at a slower rate than this, this means that the rich will genuinely just get richer and get a larger slice of the pie while the poor get squeezed.
Land/house prices will increase to the maximum the market can bear and as that market will be full of money from those inheriting from their parent's patient investment... we'll end up in a society where your quality of life depends on the wealth of your ancestors.