Hacker News Reader

Surplus of capital is a huge factor. Got numbers?

When Peter Thiel started his class at Stanford, he spent the first couple of lectures reviewing the 90's. One of his argument to explain the dot com bubble was the influx of capital from around the world to the U.S., and ultimately to the valley. Could be the same here. not sure.

View on HN

The rise in the inequality of wealth has led to an excess of capital and a lack of demand for it to fill. It's not just the US: around the world there is more people who want to invest than there are people with money to spend on the things they might make.

So we get "job creation start-ups", aka bubble businesses. The only winning move is to break the rules of the game by simply redistributing wealth/income to people who don't have it to spend.

Well, that or to build a luxury rich people will pay for.

Isn't rich people investing in bubble businesses effectively wealth redistribution?

If the investment comes in the form of equity and is used to pay salaries, yes. It's the stupidest form of wealth redistribution.

Reply on news.ycombinator.com