Former Labor Secretary Robert Reich believes the only thing that the “zero-sum” sector produces is many of the nation’s ultra-rich and worthless.

Referring to industries like derivatives, private equity, and hedge funds, Reich argues that they’re creating a few fabulously wealthy people who might disappear tomorrow and, for all the net worth they’re producing, could hardly be missed.

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“Nada. zilch. Each winner comes at the expense of a current or future loser. The only things this “zero-sum” sector produces are many of the nation’s ultra-rich. Money moves from one set of pockets to another — mostly up, into the pockets of the ultra-rich,” Reich said in his article titled “America’s Growing Zero-Sum Economy” on Substack.

Reich also cited the recent implosion of Samuel Bankman Frieds FTX saga. “Months ago, FTX was huge. Now it’s a hole in the pockets of countless people who put their money into it,” he said.

In the wake of the crisis, cryptocurrencies like Bitcoin BTC/USD and ether ETH/USD experienced a huge drop in value.

No societal gains: He also cites sectors such as corporate law, management consulting, public relations and wealth management to get his point across.

“Corporate law is another part. Highly paid lawyers representing one company fight high-paid lawyers representing another. Huge sums of money are spent on these escapades. But there is no societal gain by not equating the victory of one company over another with justice,” he argued.

Speaking about management consulting, Reich said that consulting Company how to make more money For example, by cutting wage bills, abandoning communities, busting unions, outsourcing abroad, and shifting more jobs to contract labor, there is no added value.

“Some economists call this ‘efficiency,’ but when you factor in the social cost inflicted on everyone else, it’s a zero sum,” he said.

Reich believes that in reality…