Sunday, 13 December 2015

Is the wealth inequality inevitable?

I've always wondered if the existence of an elite few is a natural given. 

This is not new news, but something I've always wondered about and intuitively thought to be true.

http://www.reuters.com/article/us-column-freeland-idUSBRE95J0WL20130620

I think there are related assumptions that need to be addressed to understand why the situation is as it is now, and how it can be changed.

1. Existence and actions of the state doesn't play a role in causing this phenomenon.

Government is coercive. To add to that, we have lots of laws, legal barriers, patents and other things that won't exist without government. These things add cost to doing business and grant unfair advantages to certain players.

Technology has the capability to make society more self-regulatory, making government less necessary. The rise of the sharing economy with its peer reviews and feedback is one example. In the distant future, it may well be that the state would be completely replaced.

2. Money isn't really money anymore.

When money can be printed, spent and borrowed at astonishingly high rates, money is no longer an indicator of value. And if we can't even price money correctly, we cannot price anything with money correctly. Since pricing is the vital function of a market, it is possible that the entire economy is far more distorted than we think.

3. People are created equal. 

As far as we know, IQ is naturally a bell curve. Some people do certain things better than others. I believe that until this is disrupted and practically infinite human intelligence can be made freely available, possibly by artificial augmentation, search engine or AI, this will continue. 

4. The potential for automation to create far more wealth is only beginning to be realised.

This is a real game-changer. I think everybody is capable of critical and creative thinking, basic labour jobs really result in many people suppressing their mind's potential to cope. With automation comes the need for mass retraining and creative adaptation. 

Conclusion:

Total equality is impossible. But inequality may not be unchangeable. The degree of inequality can be changed.

I think we may eventually come to a point where this is not the case. 

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