Here’s a very interesting observation put out by the great writer and very observant economic and social commentator Charles Hughes Smith.
Productive and Unproductive Capital
Honestly, it’s much easier to sit at a desk at home and gather long-term capital gains (which may or may not be productively invested) or tax-free earnings than put up with the guff of real business. And if this is the case, then who’s going to risk everything to hire people and "get America working again"?
This is why I predict 30 million formal jobs will be lost in this Depression; it’s no longer worth it in terms of risk/return to start businesses when everyone is sucking real businesses dry and leaving rentier capital lightly taxed and lightly regulated.
The above is the summary of an essay which points out that over time we’ve structured our economy and society such that non-productive capital (passive bond and financial investments) are treated with kid gloves by our rules sets and tax codes while using the same capital to run a real business exposes one to all sorts of headaches and additional taxes that do not apply to "rentier capital".
So why bother?
I can tell you from my experience, this rings true. The amount of paperwork and forms and rules and taxes that my state of Massachusetts applies to my simple business are extraordinary compared to squaring up my investment and trading accounts at the end of the year.
Some of the rules are baffling and maddening as if designed to be cruel and arbitrary.
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