3 ms·

Yeah and increases inequality, that creates poverty, instability, and we go full cycle. It is actually long been known, that progressive taxation indeed slows d

Yeah and increases inequality, that creates poverty, instability, and we go full cycle. It is actually long been known, that progressive taxation indeed slows down short-term development and increases long-term.

zpeti 6y ago
I see this inequality increases poverty line every day. If people are specifically getting poorer, fine, you’re right. But inequality can happen and make everyone richer, it’s just the differences get wider. Please explain your trail of thought.
- circlefavshape 6y ago
  The problem with inequality can be summed up in three words: Money equals power
- addicted 6y ago
  https://en.wikipedia.org/wiki/Effects_of_economic_inequality https://en.wikipedia.org/wiki/Effects_of_economic_inequality
- SomeoneFromCA 6y ago
  What you said is actually half true, indeed if inequality grows, but incomes of the bottom grows faster it will be tolerated, but never welcomed. But once growth slows (and it always does), there is no way for the upper class to acquire the wealth without making lower class poorer. And with money comes power, and with power - ability to rig the system.
- vannevar 6y ago
  The notion that inequality is ok as long as everyone is getting wealthier is based on the fallacious assumption that people reason about wealth in absolute terms. Wealth is purely relative. It's probably more useful to think about the problem in terms of social cohesion. As wealth inequality increases, social cohesion decreases---the wealthy dehumanize those less wealthy, and the less wealthy lose faith in the fairness of the system. Eventually you get to a point where the "poor" (who may in fact be quite rich, historically speaking) don't feel any investment in social order, and find it more efficient to take from the wealthy than to create new wealth, since the greater proportion of any marginal wealth they do create goes to the wealthy anyway. See for example the Ultimatum game for a similar micro-economic effect, where individuals reject unfair outcomes even if it means losing money (https://en.wikipedia.org/wiki/Ultimatum_game#:~:text=It%20was%20first%20described%20by,accept%20it%20or%20reject%20it https://en.wikipedia.org/wiki/Ultimatum_game#:~:text=It%20wa....).

zpeti 6y ago

I see this inequality increases poverty line every day. If people are specifically getting poorer, fine, you’re right. But inequality can happen and make everyone richer, it’s just the differences get wider. Please explain your trail of thought.

circlefavshape 6y ago
The problem with inequality can be summed up in three words: Money equals power
addicted 6y ago
https://en.wikipedia.org/wiki/Effects_of_economic_inequality https://en.wikipedia.org/wiki/Effects_of_economic_inequality
SomeoneFromCA 6y ago
What you said is actually half true, indeed if inequality grows, but incomes of the bottom grows faster it will be tolerated, but never welcomed. But once growth slows (and it always does), there is no way for the upper class to acquire the wealth without making lower class poorer. And with money comes power, and with power - ability to rig the system.
vannevar 6y ago
The notion that inequality is ok as long as everyone is getting wealthier is based on the fallacious assumption that people reason about wealth in absolute terms. Wealth is purely relative. It's probably more useful to think about the problem in terms of social cohesion. As wealth inequality increases, social cohesion decreases---the wealthy dehumanize those less wealthy, and the less wealthy lose faith in the fairness of the system. Eventually you get to a point where the "poor" (who may in fact be quite rich, historically speaking) don't feel any investment in social order, and find it more efficient to take from the wealthy than to create new wealth, since the greater proportion of any marginal wealth they do create goes to the wealthy anyway. See for example the Ultimatum game for a similar micro-economic effect, where individuals reject unfair outcomes even if it means losing money (https://en.wikipedia.org/wiki/Ultimatum_game#:~:text=It%20was%20first%20described%20by,accept%20it%20or%20reject%20it https://en.wikipedia.org/wiki/Ultimatum_game#:~:text=It%20wa....).