3 ms·

>> We should ask ourselves, how can this leverage be democratized? Isn't that a bit tautological? Economic outcomes in the U.S. have depended on one or more gr

>> We should ask ourselves, how can this leverage be democratized? Isn't that a bit tautological? Economic outcomes in the U.S. have depended on one or more groups lacking technology, education and access to capital at all times since the nation's founding. I don't disagree with your question/suggestion but in the unicorn scenario where those with powerful technical and economic assets de-leverage themselves or accept social/political forces demanding a democratization of leverage, it seems that 1) leverage as an economic concept would cease to be a major factor in wealth creation or 2) the pendulum swings in the other direction as previously oppressed peoples refuse to democratize their newfound power.

bcheung 11y ago
I don't mean democratized in the sense of it being equally distributed, I mean more available for those who can make proper use of it -- not restricted to the elite class. Technology, education, and capital have been increasingly democratized over time and I think this trend will continue. Technology is the primary reason for this because 1) costs become so much lower that it can be provided for virtually free, 2) new business models can be created that were not possible before. Now with an Internet connection anyone can create a business. With things like Coursera, Udacity, Khan Academy, etc education has been more accessible and free. There are also more options for financing, both from traditional banks being more liberal in their lending as well as new routes like Kickstarter style crowd funding and peer-to-peer lending. That being said, the distribution for people who will be motivated to educate themselves, work hard, build a business, will stay the same because human nature doesn't change as fast as technology. If various kinds of human attributes / behaviors / motivation fall on a Gaussian distribution, then any kind of leverage will make it sharper (more inequality). So what I think is going to happen is that inequality will get worse but it will be more fair because it won't be the case that that leverage wasn't available to them, it will increasingly be the case that they just didn't take advantage of it despite having access to it. That being said, it's a generalization and a trend but the opposite has some weight as well. Yes, capital will pool and that creates concentrations of power. But at the same time, disruptive technologies like Internet based education, P2P lending, etc make those concentrations of wealth irrelevant. In the long run, technology disrupts and democratizes everything. Google for the 6 D's for a longer explanation http://bobmorris.biz/the-six-ds-of-exponential-development http://bobmorris.biz/the-six-ds-of-exponential-development
- thelock85 11y ago
  Eh. I'm more of the opinion that technology amplifies the existing characteristics of social, political and economic structures (http://geekheresy.org/tag/law-of-amplification/ http://geekheresy.org/tag/law-of-amplification/) with the possibility of disrupting and democratizing. But I know I'm on an island in that regard. I understand your point.
  - bcheung 11y ago
    It's not an either or. Debt is a bad amplifier if not used correctly. Racking up huge student loans to get a degree that is not in demand will lead to poverty. The same with excessive credit card debt. Leverage works both ways. Certain people will always have destructive qualities. The percentage of people digging their own graves hasn't changed much. It's just that instead of a shovel, they now have a bulldozer.

bcheung 11y ago

I don't mean democratized in the sense of it being equally distributed, I mean more available for those who can make proper use of it -- not restricted to the elite class. Technology, education, and capital have been increasingly democratized over time and I think this trend will continue. Technology is the primary reason for this because 1) costs become so much lower that it can be provided for virtually free, 2) new business models can be created that were not possible before. Now with an Internet connection anyone can create a business. With things like Coursera, Udacity, Khan Academy, etc education has been more accessible and free. There are also more options for financing, both from traditional banks being more liberal in their lending as well as new routes like Kickstarter style crowd funding and peer-to-peer lending. That being said, the distribution for people who will be motivated to educate themselves, work hard, build a business, will stay the same because human nature doesn't change as fast as technology. If various kinds of human attributes / behaviors / motivation fall on a Gaussian distribution, then any kind of leverage will make it sharper (more inequality). So what I think is going to happen is that inequality will get worse but it will be more fair because it won't be the case that that leverage wasn't available to them, it will increasingly be the case that they just didn't take advantage of it despite having access to it. That being said, it's a generalization and a trend but the opposite has some weight as well. Yes, capital will pool and that creates concentrations of power. But at the same time, disruptive technologies like Internet based education, P2P lending, etc make those concentrations of wealth irrelevant. In the long run, technology disrupts and democratizes everything. Google for the 6 D's for a longer explanation http://bobmorris.biz/the-six-ds-of-exponential-development http://bobmorris.biz/the-six-ds-of-exponential-development

thelock85 11y ago
Eh. I'm more of the opinion that technology amplifies the existing characteristics of social, political and economic structures (http://geekheresy.org/tag/law-of-amplification/ http://geekheresy.org/tag/law-of-amplification/) with the possibility of disrupting and democratizing. But I know I'm on an island in that regard. I understand your point.
- bcheung 11y ago
  It's not an either or. Debt is a bad amplifier if not used correctly. Racking up huge student loans to get a degree that is not in demand will lead to poverty. The same with excessive credit card debt. Leverage works both ways. Certain people will always have destructive qualities. The percentage of people digging their own graves hasn't changed much. It's just that instead of a shovel, they now have a bulldozer.