This is a discussion Delulo and I have been having which seemed suited to a forum post. . .
Incidentally, I think the only way to achieve a shift in the equilibrium of capital concentration is through technology. It's the only wild card that can sufficiently alter the landscape. The capital shocks at the start of last century were the biggest social and political events the world has seen, they evened things out but we are trending toward the old concentration again. What political, social, geological changes could potentially result in persistent wealth distribution?
The capital shocks at the start of last century were the biggest social and political events the world has seen, they evened things out but we are trending toward the old concentration again.
Do you mean 1929 here or 2007?
By "persistent wealth distribution" you mean a more even one?
I'm referring to the two world wars and also the great depression.
During these events capital was destroyed and appropriated, resulting in an increase of the labour force's relative share of GDP through reduced total private capital holdings and also an increase in public capital holdings (in some cases, don't quote me). So what I really mean is that non-private capital earners commanded a greater share of economic activity and enjoyed greater relative income.
As established, capital necessarily concentrates. Following those shocks it has done just that in non linear fashion "compound interest is the most powerful force in the universe". The curve is becoming hyperbolic
right now.
Familiar, off hand numbers:25-49.9th US household wealth percentile, average wealth 1989: 30.9k, in 2007: 52.7k. 90-100th percentile for the same years: 1009k, 3,619.6k
The US is particularly bad but Europe is somewhat similar. To my knowledge the 2008 crisis in no way resulted in a change or even a slowing down of this trend. look at this telling graph:http://www.forbes.com/sites/kerryadolan/2013/04/09/a-rivarly-graphed-how-carlos-slim-overtook-bill-gates-as-number-one-richest-in-the-world/
"Persistent wealth distribution" is very sloppy and the wrong phrase. I mean an equilibrium state where the distribution of income from all sources across the socio-economic spectrum is flatter.
And the point of all this is that blockchain tech provides the opportunity to experiment with the design of economic systems which may lead to the discovery of some that tend toward such an equilibrium.
I myself would start by introducing dilution of 2% per year.
Bring on the trolls with their torches and pitchforks!
Topic: An opportunity to design the perfect economy. (Read 3662 times)
