/biz/ - Business & Finance

>>58170450
People are fucking retarded anon. That's why shitcoins make so much money. You just have to embrace clown world if you wanna make it.

People spend their money how they want. From a societal health perspective, we might be concerned about the nature of those wants. But from a business and financial perspective, this is normal.

>>58170473
people are so fucking stupid
nice cat with small legs am i supposed to be impressed because i am

>>58170450
Most people are slaves

>>58170450
I've been seriously thinking about this. Most economic theory really doesn't address idiot spending properly. ie, the people who have enough income that they start spending it on stupid bullshit instead of productively or on their own happiness.

You get some retard with $200k income and he doesn't invest his excess, he signs up for shit that makes his life WORSE, like subscription junk boxes or funko pops or drugs or whatever. Just absolute destruction of his own capital and investment in further destruction of capital down the line. Meanwhile there's people who can barely afford housing and the government printing fiat like there's no tomorrow.

I have to do more thinking but I suspect that there's an asymptotic limit on capital growth in a society, and the limit is probably based on distribution of wealth. Over time this would work itself out as stupid money flows into smart hands, but with government printing giving idiots unlimited money, I think it's actually capping economic growth. No matter how much you print the idiots you give it to will squander it and fund ever more effective means of squandering it (gacha games, etc). UBI can't fix this.

>>58170907
the cat's legs are smol

>>58170450
I saw a TikTok the other day speculating That she is now bankrupt
So not only did they donate money to her to become a billionaire but then she also threw it away

>>58170907
>government printing giving idiots unlimited mone
That's not what is happening. If idiots got the excess printing we would see way more inflation.

>>58170939
woman

>>58170926
I'm tempted to math it out but economists don't really understand math anyway. Might just write an essay about it instead. It was inspired by those j**tube sponsorship ads for some company that'd mail you a box of junk every month for a subscription. Just utter fucking junk, for like $50/month. 100% capital destruction and EXPANDING.

I didn't take wealth distribution seriously before this point but now I get it.

>>58170965
I skipped the intermediate steps, but government contractors and employees are clearly contributing to inflation without contributing to capital creation.

If you take it to an extreme, and assume all excess spending is going into capital destructive products like the junk box subscription, eventually ONLY the recipients of fiat printing can keep affording the junk boxes, and they have no incentive not to keep buying junk boxes because they remain relatively unaffected by inflation. Everyone else has to buy less junk boxes over time as inflation eats at their real purchasing power, until you have a bifurcated society of junk box enjoyers and everyone else who is living hand to mouth in poverty.

And because unlike drugs, which kill addicts eventually (or at least destroy their ability to obtain income), junk box enjoyers will experience worsening quality of life, which is likely to make them even more likely to participate in capital destructive activities for entertainment.

I don't see where the cycle breaks down as long as there's fiat money printing involved.

>>58170981
This is why crypto is so efficient in a hyper cycle, scammers control dozens of coins so you can profit off short attention span, while also hoarding your profits in the gambling token (eth/sol/bnb etc), which gradually filters back to bitcoin and finally out of the market as the bear enters. Retards chase their 1000x, while the real winners walk with it all.

>>58170907
>the people who have enough income that they start spending it on stupid bullshit
It's called a luxury good anon.
>but with government printing giving idiots unlimited money, I think it's actually capping economic growth
There was a study awhile back done by conservative economists that found that if the US federal government had capped its spending at the roughly 3% of GDP that it was 100 years ago, the median American income would be over 2x what it currently is, solely because the money wasted by government would have been put towards more capital investment, which increases total productivity and thus incomes.

>>58171056
Crypto is a weird case because it's still almost entirely speculation, but it's replacing fiat as a store of value. So in my shitty little model it's an out for people who aren't receiving inflationary fiat to store wealth, and eventually form a separate economy within or from the larger economy, which winds up destroying capital at increasing rates over time. In the crypto economy, capital destruction is punished so over time the rates of capital destruction go down or stabilize at some level, rather than growing to infinity.

I've always suspected that fiat currencies would hyperinflate and be replaced by something else, and when bitcoin was invented I figured it would be crypto. But now I feel like I'm understanding how that transition will take place, and why. I suppose if I was a real maxi I'd start up a capital destruction company like a junk box thing, and convert my profits from that into crypto, which is effectively a massive leveraged short on fiat.

>>58170907
BTC fixes this. It's the perfect liquidity sponge

>>58171093
>It's called a luxury good anon.
It's not a standard luxury good though. Luxuries from 100 years ago still retain some value (artworks, etc). There's no luxury in some cheap mass produced coasters and a jar of jam for $50/month. Resale value is like a dollar if you're lucky. It's pure capital destruction.

Another comparison might be an old luxury food like steak and caviar, which are at least nutritious, and comparing it to a guy who drank 10L of soda a day for ten years. Paying to destroy his own health. Except at least the soda guy eventually dies. Junk box people just keep working their government jobs and destroy wealth their entire lives, and train their kids to do that shit too. I really don't see the point where a junk box person becomes unable to continue destroying capital that way, if they're backed up by fiat printing.

>>58170473
I agree with this Anon.
Everyone else needs to calm down.
BTW, Trump 2024

>>58171167
I dont think this is really economic. This is just one facet of the complete moral and spiritual collapse of the civilized world

>>58171622
There is that but I do think this breaks current economic models, especially the neo-keynesian ones. Nobody models economic actors using capital explicitly to destroy capital, funded by inflation / redistribution.

It'd be like paying Huns to go around smashing infrastructure, funded by taxes.