[quote]CappedAndPlanIt wrote:
[quote]orion wrote:
[quote]CappedAndPlanIt wrote:
[quote]orion wrote:
[quote]CappedAndPlanIt wrote:
[quote]orion wrote:
[quote]CappedAndPlanIt wrote:
[quote]Ryan P. McCarter wrote:
Owning capital and demanding economic rent is not productive.
It’s quite simple–you want to earn money? Earn it. Work for it. Don’t aspire to earn your living off the sweat of another man’s brow.
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Thank you.
Orion, look at who the rich in this country are and how they make money.
The business owner makes money off of the services provided by, or products created by, his or her workers.
The landlord/property owner makes money off the ownership of property.
The investor makes money off of the success of businesses, which, see above, make money off the work of employees.
Insurance companies make a profit when you pay for years in exchange for nothing, and actively go to lengths to make it hard for you to get any benefits from the money you’ve given them.
And people scream about how fair the sytem is because any one person could be the boss, or the investor, or the landlord – nevermind that all of these positions cannot exist without a workforce of people getting paid much less than the value of the work they do.
But working 50 or 60 hours a week and barely getting by because the boss needs a huge salary, and the shareholders need to get as much as possible, and what money they are paid has to be doled out to rent/mortgage, car insurance, health insurance, is fine. If you’re one of the majority who works to make other people rich, and you have a problem with it, you are just jealous, or lazy, or stupid.
How do people not see that this is bullshit?
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Because your whole point is nonsense.
People forego consumption and take risks in order to provide the capital so that other people have those jobs, and yes, they expecto be compensated.
Take that away and they will blow it on a Ferrari, what would stop them?
You are actually expecting that other people take on your risks (insurance) or let you work with their equipment for free?
Why?
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Forego consumption? Are you telling me that most people who make considerable profits on investments are foregoing reasonable consumption in order to make those investments?
Yeah, they’d buy an expensive car. Which would pay people, who would in turn buy things, etc, etc, as opposed to one rich person sitting back and getting paid for having money.
I’m expecting that people should make money for doing work that actually creates things rather than shuffling money around and getting rich off of other peoples work.[/quote]
Just because you deem work to be unnecessary does not mean that it does not create wealth. The financial industry does have legitimate functions like spreading risks that would be to large to bear for a single individual and to direct resources where they are most needed.
Just because they do this in a way you do not undestand makes it no less valuable.
Second, what you deem “reasonable” consumption is irrelevant. The very fact that they want to indulge in “unreasonable” consumption at a later point makes them forego consumption now and frees resources to be ploughed back into the economy.
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All their work is entirely dependant on doing the majority of workers the “favor” of “giving” them jobs that just barely allow them to get by paycheck to paycheck, usually facing increasing debt year after year.
Shuffling money around does not create wealth. Owning property does not create wealth. Spreading risks and directing resources does not create wealth. The actual act of producing things or providing services creates wealth, and more should go to the people doing the actual jobs instead of all the people who want to profit from someone elses work.[/quote]
Now that is just nonsense.
Spreading risks makes endevours possible that otherwise would never be realized and that does create wealth. True, finance has an auxiliary function in this, but an indispensable one.
Directing resources to where they would be most profitable also shifts them in the direction where demand is highest, making the economy more effcient and consumer driven. That also leads to more efficient wealth creation and those enabling this get a part of that wealth, yes.
While owninmg property in and of itself does not create wealth, it enables production if it is owned in the form of capital goods,i.e. means of production. Since the owners of this wealth have the option of either going on vacation or invest it they expect a return if they forego consumption and take the risk of investing their money.
Since they sacrifice, for a time, the benefit of consumption and run the risk of never getting their money back, well yes, they deserve a part of that cut.
Now, how big should that cut be?
If you try to decide that on your own you will run into the problem of how to weigh the specific contibution of labor and capital. The market however takes care of it splendidly, in that he attaches a price to labor and to foregoing of consumption, i.e. interest rates and then it all falls into place.
You claim that the owners of the means of production makie to much compared to workers. However, almost everyone works, but very few people actually save money and invest it skillfully.
Therefore, human labor is abundant and people with the resources and the skill to use them productively are rare and the current market rates reflect that.
Now the logical conlusion would be, save your money and learn how to invest. If you do that somewhat intelligently it does make a difference over the years, and then people will complain about your “unearned” wealth.
In other words, everybody wants to be a bodybuilder but noone wants to lift the heavy ass weights.
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Yup. Keep the people not doing the work fat and happy and tell the worker his povery is his own fault for not “saving his money and learning how to invest.”
Invest = get free money for not doing work.
Everybody wants to be an investor, nobody wants to do any damn work.[/quote]
You are missing teh point.
Maybe everyone wants to be an investor bust moszt people cant because they suck at it.
Which indicates to me that not only is becoming a skilled investor hard work but there must also be more to it than you concede.