FAMILY MEMBERSHIP IS NOT A PRIVILEGE – A PRIVILEGE IS A GRANT BY THE STATE A pri

http://www.angrybearblog.com/2012/05/web-of-privilege-supports-this-so.htmlA FAMILY MEMBERSHIP IS NOT A PRIVILEGE – A PRIVILEGE IS A GRANT BY THE STATE

A privilege is something granted by the state. He has no such privilege. Instead, it is indeed lucky that one would possess genes and membership in a family with enough credibility to convey trust to investors, so that they would risk giving you money versus risk giving it to the millions of other unknowns that try to obtain it from them. There is no better form of insurance that an investor can buy than familial trust. And there is no inheritance more valuable to protect than that trust. Because, as you say, there may be no value added by his presence, but then there is no value risked by it either. Since all candidates may in fact provide marginal increase in value, the investor selects a candidate due to loss aversion.

You [Angry Bear] are not following through to the logical conclusion of your statements (and neither is DeLong, but then he’s a hack). A family demonstrates the trustworthiness of its members. But that isn’t the conclusion you would like us to take from this question. Because that would be an indictment of the lower classes. 🙂