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An Introduction to Investing Online.

Democritizing Profit

Distribution of U.S. Wealth Ownership, 2001

In the world of investing, technology is making it easier to gain information and control. If more people took advantage of these new opportunities and began to invest, it could stop or even reverse the growing economic disparity in the United States.

*Note: If you are unfamiliar with any of the terms or concepts discussed on this site, click the links to reference sites on the menu to the left.*

Risk Vs. Return

The common message of almost all investing advice is: the more you know, the less risk you are taking. Now it is possible for anyone on the internet to have access to much of the information that brokers analyse to develop strategies. There are incredible amounts of free advice from media of all types.

Most people are scared because the risks for loss are high. If you only invest a small amount of initial money and then only reinvest the profits from that, you can only loose your original investment. Surely it's more sensible than gambling or playing the lottery. It's true that making good investments is difficult and takes a lot of time, but it is a myth that it is beyond the abilities of average people.

Share of Total Ownership of Stocks, Mutual Funds, and Retirement Accounts, 1998

Long-term diverse investing provides a safe way for most people to save. If you have a steady of income and loosing your investments will not wipe you out financially, you can pursue higher risk strategies. Leaving your money in the bank isn't totally safe either: there's currency devaluation and rising consumer prices to worry about (C.P.I. and Inflation Reports.) There is a reason that virtually every financial institution and wealthy individual in this country invests in securities.

A Call For Change

This site was created to inspire good-hearted young people to start taking some of the profits that have been hogged by the rich for too long. University of Chicago economist Austan Goolsbee wrote:

“Economists don't know whether the stagnating wage growth of recent years will be a persistent feature of the economy. But the returns on capital investment are as high as they've ever been. So at least until there is some clarity in the wage picture, the clarion call for progressives ought to be: Democratize capital ownership!

In the current order of things, the well-off are benefiting from higher wage growth and higher capital income growth than everyone else. On top of that, they've been enjoying a third helping of dessert in the form of preferential tax incentives that have been much more generous to them than to the middle and working classes.

Providing incentives for more people to share in the modern economy's rewards through savings and investment -- that is, democratizing capital ownership -- would establish a kind of hedge for the middle class against just the sort of problem the country has experienced in the past three decades, where the economy grows, but the incomes of typical workers stagnate or even fall. Conscious investing Just like the consumer market, the stock market can become a way for the public to impose their will.”