One of the problems with having very wealthy people is that often they have no idea what they should do with their money.
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@futurebird an astute argument for paying higher rate taxes, wealth taxes and inheritance tax. Love it.
The entire concept of markets being good things is dependent on every dollar being spent in some way representing the intentions, desires and values of real human beings and the things that they want.
So what happens when a large portion of the money isn't being spent on things that make sense? What happens if the best way to increase your wealth is to exploit loopholes and insider information?
The whole system starts to fall apart.
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The entire concept of markets being good things is dependent on every dollar being spent in some way representing the intentions, desires and values of real human beings and the things that they want.
So what happens when a large portion of the money isn't being spent on things that make sense? What happens if the best way to increase your wealth is to exploit loopholes and insider information?
The whole system starts to fall apart.
This whole rant was prompted by reading about several overvalued companies, bitcoin, and other market perversions. There is a point in all of these stories where the charismatic conman finds a rich guy, or several rich guys who simply . . . give. . . this person an obscene amount of money for their venture. The venture becomes important and pulls others in due to the seed cash.
It makes me think: why are there so many people with 50 million dollars to just toss at these things?
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This whole rant was prompted by reading about several overvalued companies, bitcoin, and other market perversions. There is a point in all of these stories where the charismatic conman finds a rich guy, or several rich guys who simply . . . give. . . this person an obscene amount of money for their venture. The venture becomes important and pulls others in due to the seed cash.
It makes me think: why are there so many people with 50 million dollars to just toss at these things?
I can answer my own question: sometimes the returns for those who get in first are massive. 50 million becomes 300 and that must feel good. Just as often it all vanishes.
But I'm not really interested in that angle. I'm interested in what this kind of investment does to the whole economy?
And how would it compare to if the 50,000 *least* responsible people with average incomes were given that same money to spend?
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The entire concept of markets being good things is dependent on every dollar being spent in some way representing the intentions, desires and values of real human beings and the things that they want.
So what happens when a large portion of the money isn't being spent on things that make sense? What happens if the best way to increase your wealth is to exploit loopholes and insider information?
The whole system starts to fall apart.
@futurebird @tgent_fens markets are always, inevitably, bad things. Markets move wealth from those in need to those with surplus. Always. Inevitably. That is literally the only thing they do.
They increase wealth inequity, and thus social inequity; they enforce the maldistribution of goods. They have no redeeming features.
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@futurebird @tgent_fens markets are always, inevitably, bad things. Markets move wealth from those in need to those with surplus. Always. Inevitably. That is literally the only thing they do.
They increase wealth inequity, and thus social inequity; they enforce the maldistribution of goods. They have no redeeming features.
"markets are always, inevitably, bad things."
I don't really buy that. Markets can be a great way to solve resource distribution problems and many of the alternatives are much more annoying and restrictive.
They just aren't magical.
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This whole rant was prompted by reading about several overvalued companies, bitcoin, and other market perversions. There is a point in all of these stories where the charismatic conman finds a rich guy, or several rich guys who simply . . . give. . . this person an obscene amount of money for their venture. The venture becomes important and pulls others in due to the seed cash.
It makes me think: why are there so many people with 50 million dollars to just toss at these things?
We focus a lot on the conman who runs the terrible investment bubble, scheme, rug pull, paying dividends with capital or whatever venture. But not as much on the rich guy who quietly shows up and puts in the first big pile of cash.
But that choice to invest big in a bad idea has consequences for everyone!
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We focus a lot on the conman who runs the terrible investment bubble, scheme, rug pull, paying dividends with capital or whatever venture. But not as much on the rich guy who quietly shows up and puts in the first big pile of cash.
But that choice to invest big in a bad idea has consequences for everyone!
@futurebird Are they not part of the scam? They know they're not likely to be left without a chair when the music stops.
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@futurebird Are they not part of the scam? They know they're not likely to be left without a chair when the music stops.
Sometimes they make out with a lot of money, other times they seem to lose out with everyone else.
No honor among thieves I suppose.
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Some libertarians have objected to this on grounds that it's saying that no one is special enough or smart enough to undertake "big projects" -- they claim that this kind of thinking will stifle human creativity and innovation.
They used to say "how would you have someone like Elon Musk or Sam Bank-Altman?" (don't say this anymore for some reason)
But to that I say? If you have a good idea get some people together and make it happen together!
@futurebird @jadp @crmsnbleyd (I think you combined Sam Altman and Sam bankman-Fried)
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@futurebird @jadp @crmsnbleyd (I think you combined Sam Altman and Sam bankman-Fried)
Oooh oh how could I make such an error. They are totally different guys.
