4 ms·

The inequality doesn't come from the creation of wealth so much as the destruction of it. Inflation and rising prices of staple goods (there is some covariance,

The inequality doesn't come from the creation of wealth so much as the destruction of it. Inflation and rising prices of staple goods (there is some covariance, but the latter seems to be outpacing the former) impact poor people disproportionately hard because staple goods are more or less fixed costs. The marginal utility of an extra dollar is much higher for someone on the poverty line vs. someone who is a multi-millionaire.

WalterBright 4mo ago
[flagged]
- srean 4mo ago
  Grain prices are today set by derivative markets that have very little connection to actual produce.
  - WalterBright 4mo ago
    Watch what happens to prices when the supply goes up or down. Talk to any farmer about it.
    - srean 4mo ago
      Too much latency in information flow. Too high a variance. Worse is that one can double bet on the same underlying asset on different exchanges (like taking out multiple insurance policies on the same car with payout on one policy not necessarily invalidating other policies). This grossly distorts prices.
- 10000truths 4mo ago
  > Inflation is caused by the government, not wealth creation. The US had zero net inflation from 1800-1914, despite incredible amounts of wealth creation. The inflation since 1914 is caused by government deficits. > Government deficits are not caused by rich people. They're caused by the people you voted for. I do not dispute this, but the deficit is exacerbated by a lack of tax revenue. Scrutiny will naturally move towards the people who are most able to fill the coffers. > No, they're not. Their availability and price is determined by the Law of Supply and Demand. I misspoke. What I meant to say is that the demand is fixed (i.e. inelastic). As you said, you can only eat so much - a poor person's subsistence will make up a much larger portion of their monthly budget than a that of a rich person.

WalterBright 4mo ago

[flagged]

srean 4mo ago
Grain prices are today set by derivative markets that have very little connection to actual produce.
- WalterBright 4mo ago
  Watch what happens to prices when the supply goes up or down. Talk to any farmer about it.
  - srean 4mo ago
    Too much latency in information flow. Too high a variance. Worse is that one can double bet on the same underlying asset on different exchanges (like taking out multiple insurance policies on the same car with payout on one policy not necessarily invalidating other policies). This grossly distorts prices.
10000truths 4mo ago
> Inflation is caused by the government, not wealth creation. The US had zero net inflation from 1800-1914, despite incredible amounts of wealth creation. The inflation since 1914 is caused by government deficits. > Government deficits are not caused by rich people. They're caused by the people you voted for. I do not dispute this, but the deficit is exacerbated by a lack of tax revenue. Scrutiny will naturally move towards the people who are most able to fill the coffers. > No, they're not. Their availability and price is determined by the Law of Supply and Demand. I misspoke. What I meant to say is that the demand is fixed (i.e. inelastic). As you said, you can only eat so much - a poor person's subsistence will make up a much larger portion of their monthly budget than a that of a rich person.