@economics

If you don’t spend — if you hold or “save” money — it stays in your bank account and the aggregate stock is unchanged.

In the long run, asset prices go up.
The most powerful wealth multiplicators are real estate and equities (aka. property and shares).

#wealth #accumulation #assets #money #savings #estate #realEstate #property #family #ownership #riches #shares #equities #holdings

Who benefits from portfolios of #housing and #infrastructure like toll roads, hospitals, gas pipelines, data centres, water and sanitation services, telecom towers, electricity generation facilities?
Why such discretion? 🧵
https://canadiandimension.com/articles/view/brett-christophers-on-our-growing-asset-manager-society

#funds #pensionFunds #Toronto #Canada #assets #sanitation #powerPlants #assetManagers #assetManagement #ownership #property #realEstate #BrettChristophers #economy #corporate #corporations #insurance #banking #investors #capitalism #taxes #taxTheRich

"The wealthier a household was in 1990, the quicker its wealth has accumulated in the years since. While the top 1% grew its share of total household wealth, all other U.S. wealth groups have seen their shares decrease."

https://archive.is/20250430155240/https://www.wsj.com/economy/1-trillion-richest-families-wealth-increase-bc13874a h/t @John

#wealth #money #accumulation #redirection #appropriation #USPol #neoliberalism #RonaldReagan #taxes #assets #savings #estate #property #ownership #finance #economy #economics #inequalities #concentration #families #TaxTheRich #billionaires

#Capital is a social promise.

"For the business investor, capital has long been stripped of any physical characteristics. In the eyes of modern owners … capital means one thing and one thing only: a pecuniary capitalization of earning capacity. It consists not of the owned factories, mines, aeroplanes, retail establishments or computer hardware and software, but of the present value of #profits expected to be earned by virtue of such #ownership."

https://blairfix.github.io/capital_as_power/accumulation-and-sabotage.html#the-absentee-ownership-of-power

#economics #capitalism

Almost @Herefordrob .

For Marxists, capital is a promise of earnings, guaranteed by property (even immaterial property).

@economics

Ascension Mejorado &Manuel Roman show that it is the decline in the rate and mass of profits that leads to an investment collapse and a hoarding of cash, with the subsequent collapse in ‘effective demand’, not vice versa.

"Falling profitability saps the incentive to expand the stock of fixed capital assets".

“The Federal Reserve’s policy of lowering interest rates since 1984 had very little effect on nonfinancial capital expenditures.”
…

#economics #economy #interestRates #profits

…
"Lowering interest rates will not increase nonfinancial corporate investment when profitability is low or falling as it has been since 2000. Falling interest rates did not spur nonfinancial corporate investment. Instead falling interest rates stimulated mortgage buying by households."
“For Marx, an increase in the demand for idle money, at the aggregate level, takes place when the capitalist class as a whole is induced to regard investment and production as not profitable.”

#finance #property

Having property makes you richer.

An 'asset' is a labeled balance-sheet entry.
It tallys a valuation. The latter only is experienced when the 'asset' is swapped with another person (which sets then-current market pricing), in exchange for 'cash' bank-deposit assets.

Swapping "shares for cash only requires a few mouse clicks. That’s a purely mechanical step, necessary because sellers demand, and payment-transfer systems only deal with, fixed-price cash assets".

https://wealtheconomics.substack.com/p/inequality-researcher-david-splinter

#assets

How "federal policies increase debt and home size — and thereby sprawl": https://www.thenewatlantis.com/publications/how-the-government-built-the-american-dream-house

#housing #taxBreaks #mortgage #wealth #realEstate #assets #ownership #property #realEstate #insurance #loans #debt #taxes #urbanSprawl #policy #homeLoans

Saving (ie. revenues minus spending) does not even come close to explaining the accumulation of household wealth (ie. assets and net worth).

#nonProfit #fundations #wealth #accumulation #worth #capital #assets #money #savings #estate #property #family #ownership #billionaires

'Capital' is not money. It is the expectation of obtaining later money from an 'asset'.
An 'asset' is a labeled balance-sheet entry – backed against a factory, a flat, a patent, a software (or a combination such as Netflix).

Household #wealth mostly accrues from 'asset' creation (or investment) and 'asset' revaluation (aka. holding gains):

#inflation #finance #privateEquity #capitalism #assets #ownership