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The key is that the pie would get bigger faster, in the long run, if wealth were more evenly distributed. As inequality grows, the behavior of the market appro
by xapata 7y ago
The key is that the pie would get bigger faster, in the long run, if wealth were more evenly distributed. As inequality grows, the behavior of the market approaches a command economy, with all the fragility and inefficiency that brings. As wealth distribution approaches uniform, market decision-making approaches maximally distributed. There's some optima of wealth distribution which maximizes risk-adjusted growth. We've probably gone a little too centralized, at least for some industries.
- kortilla 7y agoWe’re nowhere near a command economy. For that to happen the holders of 99% of the wealth would have to be coordinating (or be the same person/org). The wealthy compete and disagree all of the time. The most valuable companies in the world still got there by catering to the middle class and poor.