pwmglenn
Joined 1 year ago
Joined 1 year ago
"There's nothing unjust about someone getting more returns on more invested, this will naturally lead to a widening wealth gap over time. It's an inherent property of existence that more invested yields more return yields yet more invested (accelerating)."
Do you see how there is nothing stopping insane accumulation of wealth/power? (assuming returns continue to accelerate in this manner?)I just thought it was a better illustration, easier for the average person to comprehend without those.
I didnt mean to do any advocating. Just provided the info because I wanted to see how it'd affect things.
The issue is that income/wealth compounds over time. If people in the bottom 40% have very little to invest, they have nothing that compounds. They dont even have an opportunity to risk anything, or make a better decision.
The prices of the essentials are largely out of any individual's control. So any lack of ability to save / invest beyond spending on those is also out of their control. It's a vicious cycle, where excess wealth compounds, and income needed to exist dries up.
Also the rich often see a larger return to their investments than poor people, so having wealth seems to aide in your ability to make more money. Exactly the sort of thing that you implied was unjust.
And your other points about mobility I agree with and are addressed in notes on the site.