Remix.run Logo
Epa095 3 days ago

So, talk me through where I am wrong. I will use the example in my sibling post you did not reply to.

If you put 10 million into the S&P 500 in 2002 you would get a dividend of roughly 132k (1.32%). That's your share, as a owner, of the wealth produced that year across all the companies you own tiny parts of. Keep the money there, do absolutely nothing, and in 2025 it has grown to 70 million. Your yearly payout is roughly 925k, 7 times what it was 20 years ago.

You agree with this? And then we compare that to wages, and see that they have grown significantly less. You agree to this as well? For sake of argument, let's say they doubled.

From this I conclude:

- Income from capital grows exponentially faster than income from salaries.

- The person who invested 10 million in 2002 gets a larger fraction of what the economy produces compared to a salaried person today than 20 years ago.

- That difference will increase if the stock market continues as it has done in the past.

Please help me understand which conclusion you disagree with, and why.