[lbo-talk] hard work

Doug Henwood dhenwood at panix.com
Sat Feb 10 19:35:16 PST 2007


On Feb 9, 2007, at 3:37 PM, Michael McIntyre wrote:


> Yes, but why do they? The returns to the "hard work" of the rich
> can be broken down (analytically, if not empirically) into:
> *interest: what the rich could earn from their accumulated capital
> as rentiers
> *rent: what the rich earn due to ability to exploit deviations from
> the mythical market
> *pure profit: the residual - a sort of entrepreneurial wage
>

Inherited fortunes are nice, but they're small next to those generated by hedge funds. It's hard to be seriously rich as a rentier. There are trust fund kids DJing all over Williamsburg, I'm sure, but they don't count for much in the social structure.

Doug



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