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If you want to know why wealth tends to concentrate over time, followed by a collapse, this is it. The Habsburgs had the gold and silver wealth of the New Worl
by recursivedoubts 4y ago
If you want to know why wealth tends to concentrate over time, followed by a collapse, this is it.
The Habsburgs had the gold and silver wealth of the New World pouring into their treasury, and the sympathetic catholic Fugger's loaning them money at what were then considered Christian rates, and they still collapsed within a century.
- AstralStorm 4y agoJust one of the reasons. The other mathematical reason is gambler's ruin. A person with larger pot by chance or design can gamble riskier investment much longer and can diversify it more. Poorer people play a martingale, rich people play a multi-armed bandit. The less of a backstop in the society, the bigger the difference in outcomes. Rich play with armies and even if they lose they are well off. Poor play as soldiers and have nothing, not even their life, when they lose.
- recursivedoubts 4y agoTrue. And, of course, now we have socialism for the rich (see SVB) and bootstrap-pulling for the poor (see Palestine, Ohio).
- kaskakokos 4y ago>>If you want to know why wealth tends to concentrate over time, followed by a collapse, this is it. Hi, do you mind to elaborate this a bit? I do not understand why before we have concentration and collapse later.