I just hate it when people talk about their investments in the stock market, and believe they are somehow entitled to a return on that investment. As if the money they’ve used to purchase shares of a company is the same as giving a company money to get started, expand, or develop new and/or improved products or services that benefit society.
Well let me set the record straight here.
Transferring [exchanging] shares of a stock, between individuals thousands of times removed from the original investor(s) in a business, is not an investment. That money doesn’t go to help the business, and it definitely doesn’t help the economy. The only ones who do benefit are the brokerage houses that enable the exchanges. It’s not an investment in anything, and no one is entitled to a return on that money.
Warren Buffet invests. Venture Capitalists invest. They put money at risk giving it directly to businesses, new and ongoing, to get started, to prop them up, expand, or improve on the products and services produced by those companies that benefit society. Those are the ones who deserve a return on their investments.
Buying shares on the NYSE, NASDAQ, or the myriad of other exchanges around the world, is no more an investment then trading baseball cards and other collectibles, or plunking down $20 on the passline in Craps. It’s just a legalized form of gambling. The only difference between going to Vegas, and buying shares of stock on the various stock exchanges, is Vegas makes no illusions of its true intent.
It could also be said that putting money in the stock market may even hurt the economy. By shifting money to the stock market, there’s less money available for banks to lend to businesses, to create jobs producing products and services that benefit society, and to lend to individuals for the purchase of homes, cars etc. which incidentally was the original purpose of banks, rather than shifting it to their trading desks.
Somewhere along the line, that concept gave way to the fantasy of an “ownership society” and the promise of great riches, along with the destructive nature of companies focusing purely on profits at any cost, even to the detriment of what’s best for society.
The stock market is nothing more than a scam, designed buy hustlers, in order to siphon money from the working [producing] class and transfer it to them, and until the US and the rest of the world wake up to that reality, the middle class is destined for extinction, and what countless thousands of people have fought and died for, over the past 200+ years, will have been for naught.