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Googling around, all I find so far is that this is generally measured by the Gini coefficient, where 0 is everyone is equal, and 1 is the top dog gets everythin
by tunesmith 9y ago
Googling around, all I find so far is that this is generally measured by the Gini coefficient, where 0 is everyone is equal, and 1 is the top dog gets everything. The US is around a 0.38, Denmark is 0.25.
I'd rather visualize it as a line going from left to right, that curves upward as it goes to the right. A Gini-0 would be horizontal, a Gini-1 would basically be a hockey stick. So the US is generally going to be steeper on the right side than Denmark, but in reality each region's line is going to have a bunch of wiggles.
So I wonder if there's an ideal "line". Either scored by some metric, like at what point does some measure of mobility or entrepreneurship increase or decrease... or some measure of system stability.
For instance, I've seen a few references that the value of money is roughly logarithmic as it increases. If every wealth holder were taxed logarithmically (so that the tax bill "hurts" everyone equally), and the proceeds were then distributed to everyone equally, would that push the line to some sort of stable shape, no matter how unequal the system starts?
If so, you could consider that a line of capitalism, with anything on either side being disproportionate in some way. The line should still curve since talent/skill/etc will always have an impact.