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View Diary: Must the Rich be Lured into Investing? Who are the Real "Job Creators?" (9 comments)

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  •  Patient Capital (3+ / 0-)
    Recommended by:
    Nova Land, Spoc42, GDbot

    A concept which emerged out of the wreckage of the southeast Asian financial crisis in the late 1990s was the idea of patient capital versus hot capital.  Hot capital was comprised of those flows invested in speculative investments intended to secure quick returns.  Conversely, patient capital was invested in projects which would show returns over only a number of years.  Some of the southeast Asian nations decided that hot capital was not worth the cost it created in their societies because is distorted the economies beyond usefulness.  A sensible tax policy would ensure that patient capital had extremely low or zero tax rates while hot capital was taxed at multiples of the tax rates on labor and current income.  Those folks playing at the stock market casino with their flash-trading should be paying something northward of 90% on their speculation, which does nothing to promote any benefit for the general society.

    "Love the Truth, defend the Truth, speak the Truth, and hear the Truth" - Jan Hus, d.1415 CE

    by PrahaPartizan on Fri Feb 03, 2012 at 10:57:00 PM PST

    [ Parent ]

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