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How does that not go back into the economy? The big difference between holding land vs gold/stock is that land is finite. If the price of gold spikes then peop
by lesuorac 14d ago
How does that not go back into the economy?
The big difference between holding land vs gold/stock is that land is finite. If the price of gold spikes then people will build more gold mines. That's economic activity. If the price of land goes up then people can't make more so there's no economic activity.
If the price of stocks go up then more companies will IPO which directly funds economic activity (those companies's operations).
Granted, it doesn't as well into the economy as directly as if it were tax'd and then spent improving bridges and whatnot.