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View Diary: Wealth Condensation: Why the Rich Get Richer (172 comments)

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  •  Precisely backwards (0+ / 0-)

    It is the exposure of investments to risk that results in vast wealth disparities.  Despite the purported brilliance of those who build successful businesses, luck plays at least an equally strong role in determining the winners and losers in emerging markets.  And because virtually all money in our modern economy has value because it is backed by someone else's promise to repay a debt, nearly all savings literally is investment.

    On the other hand, if everyone spent and consumed all of their income, there would not be a disparity of wealth at all, because wealth would not be accumulated, only produced and consumed.

    From such crooked wood as that which man is made of, nothing straight can be fashioned. -Immanuel Kant

    by Nellebracht on Sun Sep 25, 2011 at 03:37:11 PM PDT

    [ Parent ]

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