The main thing I disagree with TS is this :
The notion that because some in the top 1% are excellent in being productive with their capital , it should included all of them .

If that was so , considering 88% of the stock market are held by the top 10% ( 1% hold 50% !) , why is there so many bubbles in the market at all time high ?
- Am I to believe bubbles do not mean mis allocation of capital ?
- Am I to believe with their capital they are not investing in overinflated stock market ( they holding half of it !) and financial assets but creating new company and jobs ? Really ?

- To me those that have capital (including banks doing buyback shares instead of lending ) are massively in the game of creating more paper money and not creating more productive value in the real economy ( which is what the middle class and the poorest are connected with ).
- If the top 1% were so productive with the excess capital they own, why gdp keep decreasing for decades now ?
- Why inflation are in most cases in financial assets and not in the real economy if it was so much productively for the bottom 65% of the population .
- Why is there around 15-20% of zombie companies ?
- Why the financial economy (basically the economy of the wealthy, top 10%) needed to be bail out multiple times if they are so smart and productive ?

All of this isn’t a productive economy but a waste of capital .

Stock market reaches all time high in the greatest shutdown of the entire real economy of the history of the world , creating the greatest disconnect ever between the real economy and financial economy , and that is suppose to be productive for the majority of the people ?
Really ?

What am I missing ?
The flow of money is not indicating what TS is suggesting from my POV .

The principle of just a few that should hold money and decide for the rest of the population hasn’t really work throughout history , it is kinda of why democracies were born ...

I don't think having access to a 30mbps connection from a monopoly exactly equates to having infrastructure that supports modern life(commercial or personal).

What use cases do you think are supported in an area that has a single provider offering 30mbps/3mbps?

Is it fine for a single person in an apartment? Probably. But what does it tell you about the infrastructure in that area?

Market prices of equities are based on speculation of future earning (or people just like the stock, like GME) which can change wildly. When expectation changes wildly so do the stock price. The bubble have nothing to do with the companies in question being productive or not but due to inherent risk of uncertainty of earning.

1% hold 50% should be obvious as you count % with market value and does not imply any wrongdoing or fault. A stock can go up 1000x while others are up just a little or losing.

What? You can just look at the balance sheet of the company and see where the money goes. As for the secondary market if someone is buying then there is someone selling. No one can know how the seller use the money.

We are talking about the use of capital to make something productive.
TS point of view of only the rich use capital in a productive way is wrong .
Some do but certainly not all .
Buying Inflated assets is not productive .
It is a waste of capital.
And it certainly do not bring anything good to the bottom 60% of the population .

So taking into account that we are in front of the biggest bubbles in history for the majority of markets.
Greatest debts ever just to sustain inflated financial assets .
Manipulated Interest rates at historical low level to prevent the bust of the American economy , private sector and government.
Taking Into account almost 90% of the entire financial system , supposedly efficient (?), is control by the most wealthy ( hence from TS words , most productive of the society ) and got bail out multiple times to save them ( now socialism is good ?) ....

I’ll take the freedom to say maybe they aren’t that good either , in most cases, to be efficient with excess of capital and they certainly do not help much for the growth of gdp and the real economy , which sadly is where the majority of the people’s gets their earning.

A complement though for TS .
Explain to me how the rich don’t waste capital ....
Knowing how you personally love bitcoin , I guess the move of 1.5 billion (?) $ of Elon musk into bitcoin is massively productive right ?

I mean you can’t have it both way .
It’s Elon or bitcoin that is mistake , which one is it ?

There are many layers to the issues. It's a predatorial world and you can expect to run into some predators at some point.

But the poor are not the issue. They are an outcome of an issue.

Also, @ others, you don't get to call correlations between poor and dumb while on the same hand not seeing correlations between other things in life like mental health and obesity or other issues.

Montrealcorp it seems that you misunderstand the function of the secondary market.

The "production" that TS was referring to was done by the corporation. Buying stuff and hiring workers to provide goods or services.

When you said "Buying Inflated assets is not productive" and "It is a waste of capital" you can't see the forest for the trees. The function of this market is to allow the original investors to "get off".

If there were no stock market tomorrow, sure, companies could still be started, except the owners are forced to hold on to that company forever, not allowing the original investors to de-risk. That is such an inflexible economic arrangement such that fewer companies would be formed. It is vastly more beneficial to allow the old owners to "cash out" by allowing those who want it to "relay" the company, the value is inflated or not is actually irrelevant. Would you rather the company being liquidated when the owner need money for his personal life?

You claimed there is a bubble in the stock market, but how is that related to the company which is making stuff that people wants? Sure money could be made by having "greater fools" but are you saying that those underlying companies are actually not that valuable (so the money is actually from greater fools not real company appreciation)? If so, which one? GME? How many people earn a billion with GME? Maybe Amazon is actually worth 1/10 of its current value, but how is it relevant to "wasting capital"? The money buyer pay is the money seller can use, so how is it "wasted"?

And that 1% own whatever much is an old and tired talking point I explained about why this is normal.

No, one business. While the Dallas Cowboys and the New York Giants compete against each other on the field, they do not compete against each other economically. The NFL is providing one product.

I think you're confusing money and productive capital again. It's easy to do but if you think about economics you need to get clarity in that in your head, or you won't grasp the fundamentals.

And whoever said the rich don't waste capital? Anything but a perfectly calibrated 100,000 IQ AI supercomputer with a meter-level global monitoring network will waste capital. Wasting capital is very easy to do since there are far more ways to fail than succeed. That very thing is why you want the capital in the hands of the people who've most been able to prove efficiency at deploying capital to meet human wants. They're the best at a very very difficult thing that most fail at. They fail a little less.

Capital waste/chance of success looks something like this, from worst to best:

~85% Politicians, bureaucrats, much inherited wealth, most poor people: Hugely -EV, close to 0% capital efficiency, enormous waste, close to 100% chance of failure at increasing capital and close to 100% chance of destroying future capital.

10% Small business people starting out: -EV, approximately 70% chance of net wasting capital, 2% chance of maximum efficiency.

5% Experienced small business people, managers: Fairly +EV, approximately 30% chance of net wasting capital, approximately 10% chance of using it with maximum efficiency

Then there's increasing degrees of competence, until you get to:

0.1%: Higher level CEOs, CTOs, COOs, the well paid manager class: Very +EV, approximately 10% chance of net wasting capital, approximately 50% chance of it using with close to maximum efficiency

0.001%: Highly skilled geniuses: founders, the best scientists/researchers, the smartest investors: Very +EV, large positive externalities, 10% to 40% chance of net wasting capital (more variance) but much higher EV on their bets. 70% chance of using it with close to maximum efficiency.

If you want society to move forward economically and generate positive externalities for the poor, the capital needs to be in the hands of that 0.001%, with your managers the 0.1%. Any society that has strayed from that - Mao's China for example which imprisoned the top 0.1% and harassed and took businesses from the top 5% - goes to the dogs in a matter of years, with enormous suffering for the poor. It's happened so many times throughout history - anyone who has attacked the merchant class has seen their economies rapidly go into the toilet, because they truly are the only ones who have positive expectation on capital deployment.

TS views is , unless I’m mistaken , 0% taxes for the top 1% and corporations would even be more beneficial to the world , which I totally disagree .
Going back in history, it is clear it ain’t the case .

To me a working dollar ( exchanging hands multiple times ) is far more valuable than a dollar sitting in an Inflated asset prices ( doing what exactly ? ) .
That is a mis allocation of capital that could be better used elsewhere .

Why ?
The value of money is usually based on its utility components right ?
What utility paying 5X more the value of Amazon bring to the world?

Like I said plenty of time , it isn’t one or the other , it is a balancing act to find the sweet spot of how much taxes the top earner should pay and how much investing in the poor through redistribution of wealth is profitable .
When I’m speaking about redistribution of wealth , it isn’t just necessarily about money but can be for better salaries, education , healthcare program , that would increase the purchasing power for them .
And it is even more important then ever because the US are pushing a debasement of its currency , making it even harder for the less fortunate .
I mean I just find it funny people think money to the poor is bad while actually what they do with it is to consume more to increase corporations profits ....

The total economy is run fundamentally by the real economy right ?
That is why bubble appears and pops all the time , because the earning from the real economy do not support the valuation of the financials sectors right ?

Why is that ?
To me it’s because we have attain a level of wealth disparity so big , it is not productive anymore and obviously the results , data and bubble are just a reflection of that .

If the rich and corporations were really using their excess capital to invest to create more companies , products and services , there wouldn’t be so many bubbles being feed by buybacks shares and other factors .
The bubbles are certainly not from any other persons since the stock markets is own by 90% of the top 10% of society .
That is where the money of the wealthy goes , into the stock markets !

I don’t even think the bottom 50% even holds more than 1% of the stock market .
And how could they ?
Assets prices just get bigger and bigger , and the Interest rates are almost non existent to permit people to get a decent return on their money to be able to invest later on .
I mean people now have 0 return on their money in the bank while they have to pay fees to the banks for using it 0o.
Wtf .....how can they possibly get out of that vicious circle ?
If it was that easy to be a Besos, musk , etc , a lot more millionaires and billionaires would exist .

As someone that constantly deploys capital this entire post is spot on.

It is extremely difficult to learn the skills and acquire the know how to properly deploy capital productively on a consistent basis.

This isn't really misallocation of capital as I explained a dollar that the buyer paid is a dollars that is available to the seller.

If the price is inflated the buyer lose out but the seller wins. Net effect is 0.

There is no "a dollar sitting in an Inflated asset prices".

This is unlike opening a restaurant with terrible food (let's say the chef is awful). The spaces for the restaurant, the labor serving the restaurant, the food are all wasted.

"The zone, originally covering six city blocks and Cal Anderson Park,[15][16] was established on June 8, 2020, by George Floyd protesters after the Seattle Police Department (SPD) left its East Precinct building.[2] The zone was cleared of occupants by police on July 1."

Why you always lying?

I would have said something more or less exactly like what you said but I was intentionally broad so as to not be incorrect.

I think that there is a scaling effect if you want to be more specific. Of billionaires (going off of memory here, zero googled / cited sources), only 67% are self-made. The rest inherited it. Of 7-figure millionaires, I suspect this number to be over 80%. Just guessing here again.

Regardless, like many bits of misinformation out there that like to demonize the rich on Reddit and media and whatever, while there are clearly boatloads of people that get daddy's trustfund money, most do not. And those that do get trustfund money honestly aren't even in that enviable of a situation historically speaking.