Mar 16, 2019

On Jeff Bezos' billions.

It seems that most people do not understand difference between liquid money and capital when they speak about how much Jeff Bezos or Bill Gates can spend.

Imagine that you live in a $10'000'000 house and you have $5 in your pocket. How much can you spend? $5! You wouldn't spend $50'000 on a new car because to do this you would have to sell you fucking house!

It becomes even more interesting if this house is the source of your income and you have your $5 because you own the house. Would you waste $50'000 in this case?

Now imagine, that your house is such a significant part of the economy that attempt to sell a part of it would crash prices and you would lose much more than $50'000 in your capital in attempt to raise the money.

Yes, these people are reach, but when you hear about their billions you should understand what it means in practice. Their billions is not piles of cash, but factories, data centers, warehouses, data on their servers, patents.

It is also should be understood, that somewhere at the bottom of the list of reach people there are some dictators and their friends, who have their money in cash! These people are really reach as they may spend their money as they wish. Not to mention that their money is not earned by creation of some valuable company, but forcefully taken from people/companies to the country's budget and then stolen from there.

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