3 ms·
When you have an economic system where most of the economic growth goes to a small percentage each year the system will keep compressing the wealth to one side
by xbmcuser 3y ago
When you have an economic system where most of the economic growth goes to a small percentage each year the system will keep compressing the wealth to one side till the system breaks. With the advancement in AI I think the problem is likely to be exacerbated as more of the economic growth is captured by corporations from the workforce.
- mikrl 3y agoI think it’s a natural property of the interaction between capital and technology. Let’s say in a hypothetical society, the richest person has 10 capital and the poorest have 0. The gap between richest and poorest is 10 capital, and we can assume some nonlinear distribution of population between the extreme. Let’s say technology 10xes your capital. Now the rich person is 100 capitals ahead of the bottom and the population wealth curve has been stretched. Let’s say technology e^xes your capital, now your wealth curve is even more complicated and the rich person (after successive iterations of technology) is far ahead.