What is anti-capitalist investing? Trend has social, environmental and political impact
What’s this idea of anti-capitalist investing? Is it the same thing as socially responsible investing or entirely different? The Sum provides the scoop on the financial trend.
TO SUM IT UP
- As Millennials and Gen Z-ers become larger groups in the workforce, many are looking into investing as a way to grow their wealth.
- Some people have begun to wonder if there’s a more ethical way to handle their money instead of recirculating it in the markets.
- The idea of “anti-capitalist investing” has started gaining traction as a result.
THE BACKGROUND
- Roughly 90% of Millennials and 54% of Gen Z-ers already invest their money, creating a new class of younger people in the markets.
- “Anti-capitalist investing” is the idea of distributing funds made through traditional investments to social, environmental and political causes.
- Millennials and G Z-ers see this as a way to redefine what it means to grow wealth over time and what that money can do for society.
WHAT’S HAPPENING
- Anti-capitalist investing also has a lot of overlap with socially responsible or “impact” investing, which aims to support projects or companies that “give back” to society or the world in some way.
- However, both strategies have come under fire for not actually being as transformational for society as they aim to be.
- Many investment firms have also begun to offer more socially-driven funds, but they aren’t always that effective.
WHY IT MATTERS
- Millennials and Gen Z-ers care greatly about where their money goes, so they’ll continue to raise questions about how investing can become value-driven.
- These conversations lead to more questions about wealth accumulation in the U.S. and what that’ll look like for younger generations.
SOURCES
- Vox: The young, rich, anti-capitalist capitalists
- Harvard Business Review: Impact Investing Won’t Save Capitalism
- NASDAQ: Gen Z: What to Know About the Next Generation of Investors
- Fortune: Millennials and Gen Z are a growing force in investing. The market needs to catch up
- University of Wisconsin-Madison: How to be an Anti-capitalist for the 21st Century
- Investopedia: Generation Z: Stepping Into Financial Independence
- Clutch: Nearly 90% of Millennials Invest Their Money, While Only 55% are Confident in Their Money Management Skills
READ MORE ABOUT THIS IN THE SUM
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This story was originally published August 25, 2022 at 3:53 PM with the headline "What is anti-capitalist investing? Trend has social, environmental and political impact."
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