The shocking level of economic ignorance of the author shows how utterly irresponsible and demagogic the Guardian is. This is rank sensationalism at the expense of public's correct perception of the world.
To call earning passive income on assets one owns "rentier" earning of income is to show unquestioned acceptance of socialist assumptions about the right to property, to ignore the value the person's assets contribute, and to totally neglect the role that delayed consumption (aka saving) and investment analysis, both components of investing and acquiring assets, have in wealth generation.
This is the quack economics the article is promoting:
>To understand why, we need to recognise that there are two ways of making money. The first is what most of us do: work. That means tapping into our knowledge and know-how (our “human capital” in economic terms) to create something new, whether that’s a takeout app, a wedding cake, a stylish updo, or a perfectly poured pint. To work is to create. Ergo, to work is to create new wealth.
>But there is also a second way to make money. That’s the rentier way: by leveraging control over something that already exists, such as land, knowledge, or money, to increase your wealth. You produce nothing, yet profit nonetheless. By definition, the rentier makes his living at others’ expense, using his power to claim economic benefit.
To call earning passive income on assets one owns "rentier" earning of income is to show unquestioned acceptance of socialist assumptions about the right to property, to ignore the value the person's assets contribute, and to totally neglect the role that delayed consumption (aka saving) and investment analysis, both components of investing and acquiring assets, have in wealth generation.
This is the quack economics the article is promoting:
>To understand why, we need to recognise that there are two ways of making money. The first is what most of us do: work. That means tapping into our knowledge and know-how (our “human capital” in economic terms) to create something new, whether that’s a takeout app, a wedding cake, a stylish updo, or a perfectly poured pint. To work is to create. Ergo, to work is to create new wealth.
>But there is also a second way to make money. That’s the rentier way: by leveraging control over something that already exists, such as land, knowledge, or money, to increase your wealth. You produce nothing, yet profit nonetheless. By definition, the rentier makes his living at others’ expense, using his power to claim economic benefit.