Comment on John C. Bogel

I recently read some articles by John C. Bogle, and also watched several video interviewed by him from PBS. At first, I think he is right about the financial industry. He says, nowadays  the Wall Street is only for fees. They actually don't care about the investors any bit. The whole industry's record is lower than the average return of the index, after deducting those fees. People just want to keep fooling investors, and charging fees.

I have different view. The financial industry was not so big 50 years ago. It was not so integrated with other industries. So the profit rate was higher. And more efficiency improvement could be achieved if any investment or labor was inputted to the industry. But there is so many talent people are working for this industry, huge volume money is controlled and invested into all the corners of this field. The efficiency now become very low. This explanation is simple in the framework of economic analysis.

Do we need more complains about the Wall Street? Maybe yes. Maybe not. But I believe there must be more transparency between the industry and the investor, which may need more education to the investor. But that will cost (more fees?).