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I think it's probably hard to cite "proof" for any economic principle, but it's extremely concerning to me because it's a feed-forward type of situation, and in
by appleflaxen 10y ago
I think it's probably hard to cite "proof" for any economic principle, but it's extremely concerning to me because it's a feed-forward type of situation, and inherently unsustainable. Any time you have a feedforward situation, there is no equilibrium condition. You have a bubble, by definition, and the only thing that can happen is for it to pop.
This happens when you reach the limit of a fundamental input to the bubble. When this happens, you have dramatic, rapid changes in the economic structure of society, which have historically always been Bad.
From a software standpoint, it's a bit like writing a non-determinable program with an infinite loop in an unsafe language: it's just a matter of time.
The other thing is that it's a violation of the golden rule: all of the unborn individuals should have a chance at economic success. The wider the split gets, the less and less realistic that opportunity is. It's fine for all of us that won the ovarian lottery, but we can't say with a straight face that we would be successful if we were born in the fields of a third world country (or the alleys of detroit).