• sirboozebum@lemmy.world
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    1 year ago

    The current system is because it has incentives for short term profiteering over steady long term profits.

    There could be tax reforms to more tax capital gains for stocks held for short periods of time and discounts for stocks sold after longer periods.

    This wouldn't be a magic fix but a good first step.

    • GeekyNerdyNerd@sh.itjust.works
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      1 year ago

      Another thing that would help would be banning shorting stocks. Shorting makes it more profitable for investors to take a stable, profitable company that isn't experiencing exponential growth and intentionally run it into the ground than it would be to simply let it generate long term revenues.

      It's obscene that we haven't banned it and acts like it writ large. It simply shouldn't be legal to sell somebody else's property that they've loaned to you with the intention of buying another one once the price drops. It provides absolutely no value to society, is incredibly risky, and creates perverse market incentives where economic recessions and market crashes can be more profitable for some than the good times.