3 ms·
I cant help but observe that the "Power law" is more or less +1-2 SDs above mean... The network effect is leveraging those in the top (say) 5%ile across all pe
by maerF0x0 5y ago
I cant help but observe that the "Power law" is more or less +1-2 SDs above mean... The network effect is leveraging those in the top (say) 5%ile across all people.
Anyone with internet can use the software of the top 5% of programmers.
Anyone with youtube can view the top 5% of Skateboarders (or whatever content)
Etc.
This concentrates all the wealth onto them.
If we want to combat this concentrating force we need to also work on dispersion forces. We can ensure that those near the mean participate in the wins. For many this looks like equity.
across society we need to be bringing this equity to the public markets sooner. If I were the SEC I'd be working on rules that say companies cannot block sale/liquidity of shares (it is one's property after all). This would help create liquidity for the lower&middle folks who get equity in small businesses and allow large institutions to bring this opportunity to all (via index ETFs). Then instead of holding shares in some small startup you could, for example, sell some and hold an entire pool of startups (VC style) and spread your time investment in a single company across many, without job hopping.