3 ms·

The whole point of this is that explanation isn't true. Productivity is not a conspiracy theory. 80% of the output is done by 20% of the people. At some time t

The whole point of this is that explanation isn't true. Productivity is not a conspiracy theory. 80% of the output is done by 20% of the people. At some time t=0 advantages are randomly distributed. At t=1, those who happened to have them capitalized on them to increase their productivity (20%). At t=2, 20% of those increase. At t=3, 20% of those increased. This happens without any corruption, "teats", "governments", and equally resentful conspiracies.

baybal2 8y ago
No, the banal statistical explanations are not applicable here. If one does not see this point, they are very detached from reality. >The whole point of this is that explanation isn't true. Productivity is not a conspiracy theory. 80% of the output is done by 20% of the people. To begin with, what mainstream economists count for productivity is, excuse me, purest BS. Making money out of thin air does not count for producing anything, by the very definition. You deny a simple fact that the richer the person is, the easier it is for him to secure a loan on a more favorable terms than a poorer person. This also works without any "conspiracies," this is purely a feature of the economic system where somebody can print and loan away money. This works to the extend that a person with person with good connections with bankers in 1st tier banks can secure a deeply subprime loan in many Western countries.
- mjburgess 8y ago
  > You deny a simple fact that the richer the person is, the easier it is for him to secure a loan on a more favorable terms than a poorer person. No, that's exactly how it should be. Productivity increases reputation, which is rewarded by people betting on your future productivity. Banks lend according to expected returns, of course they lend to those who can return. There is no other stable system of lending: it is always a bet on expected future productivity. Anything other than this would be self-destruction. > Making money out of thin air does not count for producing anything, by the very definition. The value of money is how productive an economy is. You can create money out of thin air (ALL MONEY IS), but you cannot create value-producing economic transactions out of thin air. > this is purely a feature of the economic system where somebody can print and loan away money. No that's tabloid economics used to justify prior resentment. Human history, and any system of production, follows power-law distributions. It hasnt anything at all to do with quantitative easing or finalization: these just, at worse, dilute the value of a currency.
  - baybal2 8y ago
    Are you a professional economist?

baybal2 8y ago

No, the banal statistical explanations are not applicable here. If one does not see this point, they are very detached from reality. >The whole point of this is that explanation isn't true. Productivity is not a conspiracy theory. 80% of the output is done by 20% of the people. To begin with, what mainstream economists count for productivity is, excuse me, purest BS. Making money out of thin air does not count for producing anything, by the very definition. You deny a simple fact that the richer the person is, the easier it is for him to secure a loan on a more favorable terms than a poorer person. This also works without any "conspiracies," this is purely a feature of the economic system where somebody can print and loan away money. This works to the extend that a person with person with good connections with bankers in 1st tier banks can secure a deeply subprime loan in many Western countries.

mjburgess 8y ago
> You deny a simple fact that the richer the person is, the easier it is for him to secure a loan on a more favorable terms than a poorer person. No, that's exactly how it should be. Productivity increases reputation, which is rewarded by people betting on your future productivity. Banks lend according to expected returns, of course they lend to those who can return. There is no other stable system of lending: it is always a bet on expected future productivity. Anything other than this would be self-destruction. > Making money out of thin air does not count for producing anything, by the very definition. The value of money is how productive an economy is. You can create money out of thin air (ALL MONEY IS), but you cannot create value-producing economic transactions out of thin air. > this is purely a feature of the economic system where somebody can print and loan away money. No that's tabloid economics used to justify prior resentment. Human history, and any system of production, follows power-law distributions. It hasnt anything at all to do with quantitative easing or finalization: these just, at worse, dilute the value of a currency.
- baybal2 8y ago
  Are you a professional economist?