Capitalists Don't Take on "Risk," Workers Do

currentaffairs.org

36 points·robtherobber··12 comments

>Capitalism is frequently misrepresented as a “natural” system, civilization’s base state, absent government involvement.

The younger you are when you learn or realize this, the healthier will your spirit be.

Skin in the Game by Nassim Taleb becomes highly relevant here

In the recent history, the closest to capitalists actually taking the risk I can think of is family business owners in 90s Poland. While there were new export markets opening up and domesting demand growing as well, for some reason (I presume lending market was barely there) there were multiple stories of entrepreneurs quite literally betting the farm, mortgaging their houses etc. Some succeeded, some not quite.

How is now different? Most small business owners do that

In Poland at least, the default investment of capital for such people (and doctors, and lawyers etc.) is real estate. No matter what, they will get a soft landing with rent income.

Back then the real estate market was non-existent. Consumer mortgages weren't a thing up until early 2000s.

Then again, I was talking about companies that have had some potential for scaling, like processed food, manufacturing etc. - not businesses that are inherently local.

Jesus, i believed i opened hacker news, not bernies wet dreams diary.

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