[Fwirt]

The point they were trying to make was that if you take appreciation of assets into account, if your billion is appreciating by a relatively modest 5% per year, you are passively earning 50 million/year. Whereas someone with one million passively earns 50 thousand/year. One is enough to live in luxury anywhere in the world for several lifetimes, the other is enough to live comfortably in some parts of the US (or like a king in many parts of the world) but not enough to throw 6 figures at a programming language foundation for fun.

[skybrian]

Or to take an intermediate value, $10 million is 500k a year and most people will find it difficult to spend that much on themselves, so it’s going to grow on its own and compound. It will grow more rapidly if some is invested in the stock market.

Also, donating appreciated stock avoids taxes. This donation may have come out of a donor-advised fund.

Rich people can make substantial charitable donations rather easily and make a big difference. I suggest we encourage them.

[bionsystem]

Thanks, that is much clearer than my wording.