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Compounding interest means, left unchecked, the natural progression is the “voting” power concentrated until there is only a monarch. A trillion dollars will a
by digitaltrees 3mo ago
Compounding interest means, left unchecked, the natural progression is the “voting” power concentrated until there is only a monarch.
A trillion dollars will accumulate $100 billion in passive wealth simply by existing
- scotty79 3mo agoCompounding interest just skewes the balance so that being voted for earlier is worth more than being voted for later. I'm not saying it's a good system, but it's "aiming" for realtively good things. Just needs a bit of rebalancing regarding what activities help people get voted for. Basically harm shouldn't pay, squatting on limited resources shouldn't pay.
- digitaltrees 3mo agoCompounding interest means assets are accumulated and concentrated. At a certain point a tipping point is reached a it’s no longer possible to buy assets. No Russian serf was ever going to have upwards mobility.
- scotty79 3mo agoSure. But that's the result of the fact that the way money is set up, it "likes" if you acquired it earlier rather than later. Let's naively assume that money is a reward for doing a good thing. It might be beneficial to more highly reward people who did the good thing sooner rather than later. So it's a reasonable mechanism having undesirable side effects because it's not tuned correctly.