5 ms·

The number of children of rich people with college degrees was always high, and not because intelligence is heritable, but because money is.

nyolfen 5y ago
in the last four decades college has become orders of magnitude more expensive while wages have stagnated and almost all economic growth has gone to the very top, at the same time that the portion of the population with a degree has risen steadily
- imtringued 5y ago
  Well, it's because of the money system. People were told that working hard and smart is the path to success because people believe in the absolutism of morals even though there is no such thing in economics. The acquisition of degrees is just a form of specialization to avoid the effects of the current money system. The reason why large cities are so rich is that international investors prefer established cities. When parents put money into investments and their children follow that money out of their hometown into a large city. Considering how much we do to compensate the bad influences of our money system I seriously wonder when nations are going to change it. Probably in 2030. The problem isn't "free market" or "capitalism" although the adherents of those ideas tend to love the existing money system. Of course there are also other non reproducible assets like land and patents but I feel like properly taxing land should be more than enough. Patents only slow down progress, they shouldn't make things worse. There are two fundamental problems: 1. The velocity of money keeps going down. It's not circulating at all. Meaning fiat currency is becoming less and less a medium of exchange and instead turns into a store of value just like Bitcoin. 2. Positive interest only works with either a growing supply of money at constant velocity or an increase in velocity at fixed supply. Basically inflation via endless debt growth if there is no productivity growth or population growth. Combine this with the rise in neoliberalism in politics which basically runs into the contradictions of money at every corner. Global trade? Causes deflation which lowers interest rates. Less regulation? Businesses become more efficient. More deflation. Austerity? More deflation. Union busting? Lower incomes mean more deflation. You see, at some point you have created more deflation than the money system can survive. What breaks isn't the economy, it's the people that end up breaking. To be fair to neoliberalism. If there wasn't this pesky zero lower bound on interest rates it could have worked. I've read an article about the "negative impacts" of negative interest rates and it mentioned a complete subversion of the standard response regarding competition for interest rates. Countries will end up competing to have the lowest negative interest rate. Isn't that absurd? Countries like Zimbabwe, Greece or Turkey who are net borrowers would see negative interest rates that would pull their economy out of the gutter and yet it is considered a negative effect. It's actually weird how that article never mentioned inflation, as if it was dead for some reason.
BurningFrog 5y ago
Then again, intelligence is also heritable.
- imtringued 5y ago
  We also inherit the universe. So we inherit a world in which certain qualities will make you better or worse off.
- raxxorrax 5y ago
  Then again, wealth also helps with the collegue degree if the heredity part of intelligence isn't working out for you that well.

nyolfen 5y ago

in the last four decades college has become orders of magnitude more expensive while wages have stagnated and almost all economic growth has gone to the very top, at the same time that the portion of the population with a degree has risen steadily

imtringued 5y ago
Well, it's because of the money system. People were told that working hard and smart is the path to success because people believe in the absolutism of morals even though there is no such thing in economics. The acquisition of degrees is just a form of specialization to avoid the effects of the current money system. The reason why large cities are so rich is that international investors prefer established cities. When parents put money into investments and their children follow that money out of their hometown into a large city. Considering how much we do to compensate the bad influences of our money system I seriously wonder when nations are going to change it. Probably in 2030. The problem isn't "free market" or "capitalism" although the adherents of those ideas tend to love the existing money system. Of course there are also other non reproducible assets like land and patents but I feel like properly taxing land should be more than enough. Patents only slow down progress, they shouldn't make things worse. There are two fundamental problems: 1. The velocity of money keeps going down. It's not circulating at all. Meaning fiat currency is becoming less and less a medium of exchange and instead turns into a store of value just like Bitcoin. 2. Positive interest only works with either a growing supply of money at constant velocity or an increase in velocity at fixed supply. Basically inflation via endless debt growth if there is no productivity growth or population growth. Combine this with the rise in neoliberalism in politics which basically runs into the contradictions of money at every corner. Global trade? Causes deflation which lowers interest rates. Less regulation? Businesses become more efficient. More deflation. Austerity? More deflation. Union busting? Lower incomes mean more deflation. You see, at some point you have created more deflation than the money system can survive. What breaks isn't the economy, it's the people that end up breaking. To be fair to neoliberalism. If there wasn't this pesky zero lower bound on interest rates it could have worked. I've read an article about the "negative impacts" of negative interest rates and it mentioned a complete subversion of the standard response regarding competition for interest rates. Countries will end up competing to have the lowest negative interest rate. Isn't that absurd? Countries like Zimbabwe, Greece or Turkey who are net borrowers would see negative interest rates that would pull their economy out of the gutter and yet it is considered a negative effect. It's actually weird how that article never mentioned inflation, as if it was dead for some reason.

BurningFrog 5y ago

Then again, intelligence is also heritable.

imtringued 5y ago
We also inherit the universe. So we inherit a world in which certain qualities will make you better or worse off.
raxxorrax 5y ago
Then again, wealth also helps with the collegue degree if the heredity part of intelligence isn't working out for you that well.