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What you also need is self-multiplying investments and a lack of wealth, income, and capital gains taxes. The current financial system didn't happen by acciden
by hannasanarion 7y ago
What you also need is self-multiplying investments and a lack of wealth, income, and capital gains taxes.
The current financial system didn't happen by accident. It was intentionally built in the 1980s by the Reagan administration, at the behest of rich Republican donors. It was not inevitable, it was engineered.
- sharpneli 7y agoIt will just slow it a bit. A non progressive capital gains tax even at 99.999% will still lead to power law distribution. And I don’t think anyone would say a tax that high is exactly done at behest of the rich. (EDIT: compound interest literally is self multiplying investment) One has to rather specifically design a progressive taxation system to avoid a power law. Read the paper. The conditions for power law are very simple. I live in Finland. A place one hardly can say is friendly to the rich. Yet we too have a power law, just with different constants than what US has.
- peteradio 7y agoNobody cares that its a power law, its the particular constants that lead to the incredible disparity no?
- deleted 7y ago[deleted]