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I don't agree that there's nothing in a free market that creates inequality. Thought experiment. Random walk dollars among a population of anonymous nodes repre
by JulianMorrison 11y ago
I don't agree that there's nothing in a free market that creates inequality. Thought experiment. Random walk dollars among a population of anonymous nodes representing people, starting from an exactly equal allocation. You will get a distribution curve of poor, average, and rich. Now add a "the rich get richer" bias factor where the dollar walk is no longer random, but has a probability proportional to the existing heap. Now you get inequality. More people are poor, but the richest of the rich hold nearly all the dollars. Add redistributive tax and you can pull the inequality down, but the jitter in the system always creates some of it.
I don't believe that the entirely of "the rich get richer" can be considered a distortion. It includes lawful things like improved access to investment. I also don't think that the "distortion" can be wished away; money is power over the use of resources, and thereby power over people. This includes the power to rig the law, assert monopolies, and control the machinery of the state, and always has done.