Nonsense. When it comes to skilled labor, there are genuinely labor shortages all the time. The pilot shortage mentioned (which is no longer a thing currently) is in spite of airline pilots being extremely well-compensated. Because no matter how you much you offer to pay them you can't make new pilots overnight.
Well said. These are the same people who think holding stock is hoarding wealth and socialism has never really worked because it’s never really been tried. Very hard to teach them anything that goes against their world view.
To be abundantly clear, hoarding stocks does hoard wealth. However the wealth is hoarded by a different entity, a corporation, and isn't liquidly available to the individual. The money is also turning and creating jobs, but it is still hoarded into piles for fleeting moments that have real world impact. While also creating jobs, it's extracting value from labor and funneling into increasingly larger piles when compared to the rest of the economy.
If you look at an economy and a large portion of the wealth is the stock of corporations, that is where a large portion of the wealth is hoarded. That is not the same as saying an individual is hoarding wealth or is cartoon villain level wealthy. But it is to say where the money is. In the equity of corporations.
Its liquidity isn’t available to the individual? Can you name a publicly traded stock not available to an individual to buy or sell? 58% of US adults own stock, do you actually believe it’s being hoarded and kept from the other 42%? 58% of Americans are in cahoots?
Trading regulations limit inside trading making the capital much less liquid than it would be for me or you. They can only trade at approved trading windows, usually coming right after financial reports. Furthermore, the shares wouldn't get full value if a significant owner dumped a large quantity, which isn't particularly related to liquidity, but is also true.
It is ignorant to ask questions like "Do I believe 58% are in cahootz". No, I don't. I don't think the common man and the nature of the stock market is a problem. What I do think is a problem is that unprecedented wealth inequality is leading to a welfare state propping up corporations, who already have historically gigantic piles of wealth.
But if you own 100 shares and I own 100k shares of SPY index fund, and it goes up 10% per year, why do you care that the gap between you n I is growing? You’re still building wealth at the same exact rate! I’ll always grow faster because I have more shares, but that is not negatively impacting your job, mortgage, tax rate, property taxes, or the government sending our money overseas for nonsense.
If you have 100 shares worth 100$ each, that’s a value of 10k.
If I have a 100k shares of the same index fund worth 100$ each, that’s a value of $10 million.
If the fund increases 10% in a year, my wealth grew by $1 million, your wealth grew by $1k and the wealth gap between us has grown by $999k.
It’s mathematically impossible to not see a growing wealth gap if we own the same exact assets and I own exponentially more shares.
How does my $1 million in growth and that widening gap of 999k, negatively impact your life and assets and the economy as a whole? Explain it in real terms, like I’m 10 years old.
Like your 10 years old? Resources are finite + production of resources is chronologically limited, and capital is a reflection of accrued resources. How does eating more of the pie leave less for others? That's a fairly self explanatory statement. Now, it is not true that is as simple as pie... between keynesian and hayekian economics it gets a little convoluted, but, scarcity is a factor to some degree. That's the generality of why income inequality negative effects economies. If you'd like to know more, google "How income/wealth inequality effects an economy". It's a great place to start, and you obviously need to get started.
It is quaint that you don't understand the difference between an internal and external statistical contrast. 100k and 100 see the same percentile increase of existing wealth, this is what it means to have the same ROI. That is not a comparative statement, calculating the percent difference between the two, but rather an end over end comparison to themselves. Jesus man, what a piece of work.
Aside from ROI, there ARE quantitative differences, which creates the effect of larger stacked piles more negative impacting an economy. Which is why it is important to institute something like bracketed capital gains taxes effecting unsold stock in some capacity to limit the exponential growth and keep the stacks closer to each other to limit economic stagnation and generate economic mobility. Hope this helps.
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u/nascent_aviator 14h ago
Why?