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As Steve Downes argues on LinkedIn, when the rich bail out, what's often left is opportunities for others:
'...they don’t just “take their money” with them. They often free up economic energy for everyone else....
When very wealthy people leave, their assets do not vanish. Their property, companies, investments & leadership roles stay in the UK. And this creates real opportunities for others'!
A great bit of positive analysis rather than the usual gloom mongering!
![1. Their property re-enters the market. Ultra-prime homes often sit underused. When the owner leaves, the property is sold or rented, making space for productive use, renovation, and taxation. The OECD notes that asset turnover improves economic efficiency and resource allocation.
2. Their businesses or senior roles are taken over by someone else. When a high-level position changes hands, it opens a path for new leadership, new ideas and new talent. Firms do not disappear because an owner relocates. They continue producing jobs, profits and taxes.
OBR explains that corporate activity remains tied to location, not the personal postcode of an individual.
3. Their investments change hands and become more dynamic. Wealth held in low-activity assets (like empty property or quietly held shares) is often released back into circulation when someone leaves. New owners put capital to work.
IFS research shows that wealth transfers and asset turnover boost productivity when capital is
4. Economic space becomes available. In many cases, a billionaire’s departure removes market bottlenecks. This can allow smaller firms to buy assets, expand, or hire. The economy thrives on competition and circulation, not hoarding.
The OECD calls this process ‘reallocation gains’.
[Alt text edited for word length - retaining the key elements]](https://friendica.hellquist.eu/photo/preview/640/5325262 "1. Their property re-enters the market. Ultra-prime homes often sit underused. When the owner leaves, the property is sold or rented, making space for productive use, renovation, and taxation. The OECD notes that asset turnover improves economic efficiency and resource allocation.
2. Their businesses or senior roles are taken over by someone else. When a high-level position changes hands, it opens a path for new leadership, new ideas and new talent. Firms do not disappear because an owner relocates. They continue producing jobs, profits and taxes.
OBR explains that corporate activity remains tied to location, not the personal postcode of an individual.
3. Their investments change hands and become more dynamic. Wealth held in low-activity assets (like empty property or quietly held shares) is often released back into circulation when someone leaves. New owners put capital to work.
IFS research shows that wealth transfers and asset turnover boost productivity when capital is
4. Economic space becomes available. In many cases, a billionaire’s departure removes market bottlenecks. This can allow smaller firms to buy assets, expand, or hire. The economy thrives on competition and circulation, not hoarding.
The OECD calls this process ‘reallocation gains’.
[Alt text edited for word length - retaining the key elements]")
There are many reasons the (formally) middle class might not regard themselves as rich, but the media's obsession with celebrity & the 'rich & famous' likely plays a role:
having moved the public benchmark of richness far rom normal levels of being 'comfortably' well-off, the media have convinced vast numbers of the relatively rich to consider themselves not rich at all... with all sorts of impact on their view of tax & other policies!
h/t Sam Salama/LinkedIn
RE: mastodon.social/@tess/11561345…
Fascinating article. Take 15 mins to read. Eye opening!
Dana Fried (@tess@mastodon.social)
This is an insightful but deeply upsetting article about why everyone in the US feels poor, and why the current political situation emerges as a direct result.Mastodon
