I'm a white male who voted Biden. Why?

submitted by DoubleReverse from self.politics

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[–]Iam1ofMany 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (4 children)

You don't even understand the basics of the economy. Do you think people that have millions/billions just have it sitting in a bank account or under their bed somewhere saving it for a rainy day? What do you think they do with this money they have? Once you understand that then you might start having a clue to what you are talking about.

[–]emptiedriver 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

They can certainly have a portion of it in some kind of mutual fund that is just growing or shrinking with the stock market, why not? And that's not really any different from having it in a bank account, where the bank can essentially use it to invest to the extent that they want to take a risk (that's why your bank account accrues interest), so the notion that by "investing" it you are helping the economy is very limited. You are helping other rich people. The poor are still poor - until someone taxes the rich and diverts some of that money towards those who aren't invested in the stock market!

[–]Iam1ofMany 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

I think your understanding of what a mutual fund is incorrect. A mutual fund is simply a fund that is invested in a diverse range of things in the stock market so its value flows very closely with the stock market. If you invest in a mutual fund you are investing in lots of companies which is completely different from having it in a bank account.

[–]emptiedriver 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

no, I think your understanding of a bank is incorrect. Yes, a mutual fund is just investing in the stock market. But a bank account is just allowing a bank to take the risk for you - they will guarantee that you cannot lose any money, but they are not actually physically holding that money in a locked safe. They invest in the stock market too, and give you a small return while they make money off of your money, and can always move money around so that whenever someone needs access to their money, they can provide it. But it's all just numbers. There's no gold coins waiting in the back.

And the point is, all this investing is going into other rich people's pockets. People who don't have public companies or stock market portfolios are not gaining from it. The "economy" does well and for rich people this means their money grows, but for poor people it doesn't mean that much. Middle income people who might have a small retirement fund or something can feel hopeful with the stock market going up but it still isn't changing their life - just a number on a screen the slowly rises. If it didn't rise as much but they had stability through public means, they might be more secure.

[–]Iam1ofMany 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Banks lend your money to other people, that is how they give you a return. Your interest rate in your savings account doesn't go by the stock market, it goes by what the current interest rates for loans are.

What do you think happens with money invested in a company such as Amazon or Ford? Do you think that might work to expand Ford or Amazon and may just, maybe, create jobs for those poor people that need jobs(if they chose to work).