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To: pater tenebrarum who wrote (107681)	6/8/2001 2:21:57 PM
From: Mark Adams	Read Replies (1) \| Respond to of 436258

Since our focus is primarily the market, we may tend to overlook the much larger investment world. I would speculate during normal times, a larger portion of capital gains come from non-share investments. Mike Alexander may have a touch of myopia- claiming that any capital gain comes at the expense of someone else. Given the chance, I think he'd qualify his statement. Taxes paid on gains realized by the upper 20% depresses the aggregate savings rate. That's what the fed studied concluded, along with the fact that for the bottom 80%, real savings have increased. It is true these gains can be consumed by vacations to Disneyland or invested in the next great redevelopment project. Either case, the newly freed up capital must be deployed to earn it's keep, usually resulting in GDP growth. The exception is the investor who allocates his after tax gain to gold bullion buried in the bunker out back. <g> Wealth is created by developing new or better uses for existing resources, that create value for society, represented by an (increased) income stream. Wealth created in this manner increases the size of the pie. I call this the abundance paradigm- in contrast to the scarcity paradigm- where the size of the pie is fixed and mine comes at the expense of yours.