"they do not understand our economy, the banking system, or the need for the wealthy to create wealth for others" mcwoodduck
their are alot of people from all demographics that don't understand the economy or banking. most do realize that the largest players are taking advantage of both the govt. and the common workers. receiving bailouts and whatnot. or lending to people that can't afford it. and the wealthy don't create the wealth. the country contains wealth. the wealthy are gathering the wealth. isn't everyone responsible to gather their own wealth?
OK let me do this as basic as possible
Money is created by savings and lending. You save $100 and put it in the bank along with 100 other people.
There is now 10,000 in the bank. The bank then hold on to 20% in case you want or need your money. They then lend out the other 8,000 dollars to someonethat wants something done (pick a trade plumbing carpentry) he hires the service and pays for the job with the loan. That trade makes a profit and puts that profit in the bank. The bank then hold on to 20% and loans out the rest. No wealth can be created by owning stuff that makes money. Rental property, stocks, bonds, factory, ect. The is the value of the assest and the income it creates. That income is worth something in a sale as well as the assest.
Investing - if I showed you a new design rifle and showed you how it is super accurate, super storng, cheap to make, and reduces recoil by 70%. But I need 1 million dollars to produce the first 5,000 rifles. Would you buy into the shares? If the company produces the rifles and they are a flop do what they said they would do but are butt ugly and nop one wants them, you could loose your investment. O nthe other hand if the Army wants them and says they will pay $500 a rifle for 2 Million of them you are now super wealthy as you own shares of the company and profits are returned to you in the form of dividends. Wealth is not created out of thin air, it is not stolen from the poor as they don't have anything other than labor to sell.
Risks, rewards and the nextr best thing is houw our economy work.
The next best thing can be a product or service, it also can be an oppertunity cost. If I were not doing what I am doing what could my $ or my time be doing? Instead of putting that $100 in savings at the bank do you invest in the rifle company for 100 shares? You could loose it oer you could win big.
Look at Apple computer. Started with great ideas in a garage and with people investing (risking ) in the company it became huge. Providing goods and services people wanted. Creating money that can be turned into wealth. As the company expanded new building were needed, more staff, new production plants, housing, food and clothing for the staff, transprotation, and a whole host of auxillary business will spin off to support Apple and it's staff.
