The 1% Are the Very Best Destroyers of Wealth the World Has Ever Seen

[Donnachaidh]

http://www.commondreams.org/view/2011/11/08-7

Our common treasury in the last 30 years has been captured by industrial psychopaths. That's why we're nearly bankrupt

If wealth was the inevitable result of hard work and enterprise, every woman in Africa would be a millionaire. The claims that the ultra-rich 1% make for themselves – that they are possessed of unique intelligence or creativity or drive – are examples of the self-attribution fallacy. This means crediting yourself with outcomes for which you weren't responsible. Many of those who are rich today got there because they were able to capture certain jobs. This capture owes less to talent and intelligence than to a combination of the ruthless exploitation of others and accidents of birth, as such jobs are taken disproportionately by people born in certain places and into certain classes.

The findings of the psychologist Daniel Kahneman, winner of a Nobel economics prize, are devastating to the beliefs that financial high-fliers entertain about themselves. He discovered that their apparent success is a cognitive illusion. For example, he studied the results achieved by 25 wealth advisers across eight years. He found that the consistency of their performance was zero. "The results resembled what you would expect from a dice-rolling contest, not a game of skill." Those who received the biggest bonuses had simply got lucky.

Such results have been widely replicated. They show that traders and fund managers throughout Wall Street receive their massive remuneration for doing no better than would a chimpanzee flipping a coin. When Kahneman tried to point this out, they blanked him. "The illusion of skill … is deeply ingrained in their culture."

So much for the financial sector and its super-educated analysts. As for other kinds of business, you tell me. Is your boss possessed of judgment, vision and management skills superior to those of anyone else in the firm, or did he or she get there through bluff, bullshit and bullying?

More at the link --

[dkf]

1. If wealth is only achieved through exploitation then why would anyone seek it?

So much I am reading seems to say if you have assets you are evil.

It's true that work doesn't equal compensation. Ask a typical mother if she is adequately paid for the work she does at home.

People are compensated for generating financial activity. They can do it through muscle or through ideas. But if it doesn't generate financial activity then there is no monetary reward. That's the system we live in.

The truth is that much of our efforts in our day to day lives isn't compensated. The government won't pay you to mow your lawn after all.

[TBF]

2. "That's the system we live in" -

Exactly. And that's why it needs to change. Capitalism benefits only the very top of the pile - and it only rewards you for the greed and stepping on others that you do to get there. Nothing is going to change substantially until we get rid of it.

[dkf]

3. And replace it with what? Hasn't that always been the question?

[TBF]

6. There's no question in my mind - we evolve to socialism. nt

[dkf]

7. Like Europe and Greece? Who would vote for that now?

The problem with that is when you are dependent on the government, you can't escape from their mistakes.

[TBF]

8. Voting is not getting us anywhere. As for your quote about dependency on the government,

I believe you should forward that to your friends on Wall Street, in the Pentagon, and to the top 400 families, because they are the only ones receiving significant government hand-outs at this time.

[dkf]

14. I'm not in support of those cuts. Get rid of them all.

[TBF]

18. I think we finally found something we can agree on. nt

[nevetsbboc]

12. Greece's problems started with Goldman Sachs

Remember Goldman Sachs...those are the guys that sold all the junk bonds to Greece and others. They reaped the profits of what economic problems we are seeing now.

[Donnachaidh]

13. welcome to DU! n/t

[dkf]

15. Sold junk bonds to Greece? What the heck are you talking about?

Goldman helped Greece disguise its debts. That is the accusation, not that Greece bought bonds from them. With what money were they supposed to buy these bonds?

[Donnachaidh]

19. It was reported on npr today that Goldman Sachs helped Greece fake it's numbers to get into the EU

Goldman Sachs should be seized and driven out of business.

[DetlefK]

4. business-man vs. chimpanzee vs. musician

I remember a contest that was held about 15-20 years ago by a small TV channel in Germany:

A business-man, a chimpanzee and a musician (famous for his habit of gambling) were each given a certain amount of play money. The contest was, who would end up with the biggest fortune after 1 month, simply by buying and selling stocks.

Result: The musician achieved a narrow win, with the business-man and the chimpanzee closely tied for second place.

[dkf]

5. It's not necessarily the skill, its also the risk you are willing to take.

That is how it works for personal investments. It doesn't work so well when it encourages excessive risk taking with other people's money.

The real skill is in getting a better return with lower risk. That is the real goal.

[TBF]

9. "How to be the best capitalist" by dkf

:rofl: :rofl: :rofl:

[dkf]

16. Trying to build my wealth so I can retire someday.

[TBF]

17. I know you are ...

believe me, I get that. It just shouldn't be so hard for so many.

Here is a great article Marmar posted in the Editorials forum: Rags to Riches: Who Should Really Care?
http://toomuchonline.org/rags-to-riches-who-should-really-care/

It debunks the myth that "everyone" in America has a chance to get wealthy.

[hifiguy]

10. At least the chimp

wouldn't be scamming people and skimming money off both ends of the deal. And you could pay him in bananas.

Edited to add, from the article, this money quote:

"Is your boss possessed of judgment, vision and management skills superior to those of anyone else in the firm, or did he or she get there through bluff, bullshit and bullying?

In a study published by the journal Psychology, Crime and Law, Belinda Board and Katarina Fritzon tested 39 senior managers and chief executives from leading British businesses. They compared the results to the same tests on patients at Broadmoor special hospital, where people who have been convicted of serious crimes are incarcerated. On certain indicators of psychopathy, the bosses's scores either matched or exceeded those of the patients. In fact, on these criteria, they beat even the subset of patients who had been diagnosed with psychopathic personality disorders.

The psychopathic traits on which the bosses scored so highly, Board and Fritzon point out, closely resemble the characteristics that companies look for. Those who have these traits often possess great skill in flattering and manipulating powerful people. Egocentricity, a strong sense of entitlement, a readiness to exploit others and a lack of empathy and conscience are also unlikely to damage their prospects in many corporations."

[socialist_n_TN]

11. Not surprising. In fact I've thought all along that the

wealthy and their toadies ought to be characterized as "job destroyers" rather than "job creators" since from time immemorial in the capitalist system, these people make their money from lowering labor costs at ALL and any costs.