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I did think that but even if you extended the model to be one where money could be created via "successful" investments, I suspect much the same result would tr

I did think that but even if you extended the model to be one where money could be created via "successful" investments, I suspect much the same result would transpire - wealth would concentrate fairly rapidly if everyone kept re-investing %x of their wealth, such that a certain % of investments would result in wealth creation and others simple loss of funds.

oli5679 4y ago
Yes, this is a great extension idea. If you make a model like this, for different parameters of speculation vs. value creation you can then test what the most socially beneficial rates of tax are. More tax will lead to smaller but more equal economies and laissez-faire shouldn’t be optimal. I would just want the model to acknowledge the non-speculation part, because many of the things I buy are from spectacularly rich companies, but that are genuinely useful to me.