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RE: The Wealthy Create Wealth

in #eonomics4 years ago

A quite one-sided view that does not hold to realitites.
Yes, there are rich investors who finance high-risk companies.
But they are the exception if you look at all the important measurements.
For example

The wealthy provide jobs to people around them, invest in large corporations and small start-ups, and provide the capital needed for entrepreneurs to take out a loan to open their business.

The overwhelming majority of jobs are not created by some rich people giving money to firms, but by single/family- small businesses. Those small businesses who often have no chance of getting a loan because their risk is too big for the banks.

Also most of rich people are not investors in the creating sense. They either invest in something that others would do if they had the money (houses) and as such don't provide any positive relatively to the situation where their money would be more distributed and instead of one person building 10 houses 10 people would build 1 house each.

Or they "invest" in stocks (huge part of money), which is not providing jobs at all, because it is speculation, not investment.
After the initial offering (and selling) of stocks the company does not profit from its stocks, quite contrary stocks costs the company a lot of money.
At the same time the money in stocks-speculation is not used for real investing.
If that money was instead distributed to people who buy stuff, that would create jobs and forward the industry.


Hello @lennstar

You are both right to some degree because there are all kind of people and al kind of actions one can do in this world.
I do both, sometimes I give money to a startup and sometimes I by some STEEM at the exchange.
I have even started business myself.
Have a nice day :-))

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