The super-rich people in the news tend to be tech founders and celebrities - people who you can plausibly argue earned their fortunes. Meanwhile, tons of super-rich guys who got lucky picking stocks or timing the markets fly under the radar.
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Replying to @Noahpinion
I hate to argue weak form efficient markets hypothesis with an economist but it implies that virtually nobody got from $100k to $100M via “stock picking.” If you want to argue that capital allocation doesn’t count as work, argue against the wage-like income that comes from it.
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Replying to @patio11 @Noahpinion
Almost all the fortunes made in capital allocation are neither a result of market-beating skill in picking nor in luck; they’re a result of charging a percentage of assets under management and managing a lot of money, which is weakly correlated with the first two.
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(This has policy implications. You could tax luck directly, if you wanted to; that would be a very ineffective policy relative to taxing carried interest as ordinary income as opposed to capital gains.)
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