fluterbus on Nostr: In this chapter of "Fiat Ruins Everything", by Jimmy Song, and connecting this to ...

In this chapter of "Fiat Ruins Everything", by Jimmy Song, and connecting this to what Saifedean Ammous always puts attention to: that 'Division of Labour' is the backbone of a capitalist free market economy, which results in prosperity and progress for a civilization.

It suddently "clicked" to me:

in a fiat economy, the incessant need of "re-investing" your capital in order to protect it from constant depreciation severely attacks the Division of Labour, as you have to
1. divest/dilute your attention and split your specialization efforts from your current endeavor/career, or 2. even worse, you have to outsource your financial decisions to a so called advisor/broker/family office with all the risk, fees and unproductive capital allocations that occur bc of this.

By itself, this is a regressive force for society, without even taking into account what continuous cyclical market crashes do to so many once productive actors of the economy and some of them never recovering.