Greed often goes hand in hand with false ideas

June 30, 2026

‘That [income from passive investment] is currently taxed at a lower level than that of wage earners, who contribute to the nation’s productive wealth through their labour, is not only unjust; it also makes no economic sense.’

Sadly it makes perfect sense if you believe in a silly economic theory called the Loanable Funds Theory. We quite literally can’t invest – increase productivity – if we don’t get people to save, which is all passive investment means.

But in reality if you have an idea, you can increase the productivity of your current facility without purchasing anything. More realistically, one business can buy some machines (with their savings or bank credit) and use them in a much more innovative way than a different business. The investment creates the savings, not the other way around. And there is no determinable relation between the cost of the investment and the savings it produces. A 5-year old can understand this – not a trained economist!

In fact the more people save, the more of a problem we have. Every dollar saved is one dollar businesses have payed out but not gotten back, which reduces the profitability of the average investment.