For most people, passive income is a bit of extra pocket change that requires minimal effort to earn to supplement a main source of income. For Steve Ballmer, it’s $1 billion.
The only things that warrant investors profiting off their investment at all are the risk of not getting the money back and the opportunity cost of not having the money for other things while it is tied up in the investment so I would say a reasonable profit would be somewhere in the order of magnitude of those and not in the current “infinitely for all time” order of magnitude.
How are you possibly measuring opportunity cost? This is the opportunity. All you can do is use it to buy goods and services or invest via lending in some form
Say you could quantify that and cap profits. What should happen with corporate profits then? After you’ve “paid” the original investors? Does the owner of the company now reabsorb their shares?
And if we instead allocate profits to the workers, do we also allocate losses? Do workers just straight up not get paid if the company loses money one year?
The only things that warrant investors profiting off their investment at all are the risk of not getting the money back and the opportunity cost of not having the money for other things while it is tied up in the investment so I would say a reasonable profit would be somewhere in the order of magnitude of those and not in the current “infinitely for all time” order of magnitude.
How are you possibly measuring opportunity cost? This is the opportunity. All you can do is use it to buy goods and services or invest via lending in some form
Say you could quantify that and cap profits. What should happen with corporate profits then? After you’ve “paid” the original investors? Does the owner of the company now reabsorb their shares? And if we instead allocate profits to the workers, do we also allocate losses? Do workers just straight up not get paid if the company loses money one year?