r/Capitalism • u/OkName77 • 5d ago

Market crashing?

People have been saying that the market is going to crash forever now, is it ever going to? Everything is so expensive and it feels like inequality is just going to keep continue growing

0 Upvotes

45% Upvoted

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u/PhilRubdiez 5d ago

Is there anything inherently wrong with inequality? The economy is not some zero sum game where if a person is a billionaire, then some poor shmuck has $0. The people who whine about inequality are sour grapes about not being as successful as other people.

As far as market crashes, there are requisite boom and bust cycles. Whether you feel like it’s the government’s job to fix them (Keynesian Economics) or to let the market sort it out (Austrian School) depends on which you subscribe to.

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u/LooseYesterday 5d ago

Couldn't agree more, read somewhere that most inequality can be explained by personality traits more specifically neuroticism and consciousness, so if someone is very anxious and can't execute their plans they will end up poorer, you combine that we with the fact that such disorganized people are more likely to have kids and get divorced etc you can see how someone ends being poorer

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u/Whole_Gate_7961 5d ago

Is there anything inherently wrong with inequality?

I think it depends a lot on the gap between the top and the bottom. Everyone should expect that some people will make more money than others. What people are upset about is the massive and continuously growing gap between the top and the bottom, as it appeaers as though its only going to widen further.

If someone makes 200k per year, they are likely a whole lot closer to being homeless on the streets than they are to being a millionaire.

What smart decisions can someone who makes 100k per year need to achieve to become a billionaire?

Is it about working harder? The very wealthy are not wealthy because they went to work 16 hours a day, 6 days a week, makimg a contribution to societies needs. They are much more likely to be wealthy because they started out with a large sum of money and invested/manipulated that money in a way to have large ROI.

Is there a way to become a billionaire by working hard at something that doesnt involve manipulating money? The majority of people don't have the resources to start a business or patent new inventions. My understanding is that the majority of new businesses fail anyways.

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u/Asato_of_Vinheim 4d ago

The economy is not some zero-sum game where if a person is a billionaire, then some poor shmuck has $0.

I'm really not sure why so many capitalists don't understand the fixed pie fallacy. At any given point, there is a limited supply of resources available, and one person having exclusive access to more necessarily results in another having access to less.

Something not being a zero-sum game doesn't change this, it simply means that the total supply of resources can change over time. The fallacy comes into play when a certain distribution of resources would result in greater long-term prosperity for everyone involved but is rejected on the basis of currently being less desirable for the objecting party.

Needless to say, this doesn't impact how desirable or undesirable inequality is on its own, it simply states that other factors can be more important and must be considered.

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u/Marylandthrowaway91 5d ago

I lost everything in opportunity cost the past 15ish years. I’d have been retired by now had I not listened to myself.

In the words of George, do the opposite of your instincts

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u/onepercentbatman 5d ago

Market will probably have another crash in 2-3 years, around when we get close to 8000. Statistically, this would be when it would most likely happen. But it would require a catalyst. That may be interest rates start going back up in 2026-2027, or a recession actually happens, or some other unknown thing.

See stock market is a bit like a Greek tragedy. Statistics and history are supposed to be unreliable, but at the same time every fund and market maker lives by them. If a black swan even happened now, there would be a quick mini crash and a quick recovery, because the statistics don’t say a crash would happen now, so the alphas wouldn’t see it as a crash. But in 2026, when we get closer to 8000, same even happening and coinciding with what statistically looks like the time before a crash, people will sell and stay out of buying, creating the crash that they think was going to happen anyways. Like Oedipus, they read what is supposed to happen, have the ability to not make it happen, but end up causing it to happen cause the believed it would.

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u/maexx80 5d ago

Jepp. And when that crash happens, it will be a good correction, perfectly normal, and it will be followed by a recovery. It's gonna be OK

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u/maexx80 5d ago

Market goes up, market goes down. It won't go down forever. People who say that are fucking stupid. Inequality might (or might not) rise, but even lower class nowadays have a MUCH higher quality of life than middle class 60 years ago. So all boats float up.

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u/faddiuscapitalus 4d ago

There will always be pullbacks and corrections in markets but long term the only way out of government debt is inflation.

So no, not a total crash, just stuff getting more expensive.

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u/PuddingCupPirate 4d ago

The inequality argument makes the same lazy connection that the people who say "a disparity is de facto evidence of discrimination" make. If you are only measuring a disparity in wealth and nothing else, your conclusions will be essentially groundless. If my special drink extends life by 20 years if you drink it, and I charge everyone on Earth $20, and everyone gives me $20, the wealth disparity between me and everyone on Earth will be enormous. Are we all worse off because of this disparity?