I’m seeing a lot of writing on wealth inequality lately. Theoretically I think the natural distribution of our complex system should be something close to a power law. And we aren’t THAT far from it now. But it seems as if the bigger reason the global economy is STAGNATING right now is not because of unequal wealth distribution but rather because most of the world’s wealth is being wasted on INEFFICIENCY and FRIVOLITY. Whether its 100M Car Collections, Bloated Government Payrolls or “Dipshit Companies”. Why are CAPITAL and LONG TERM VALUE CREATION so far apart?
21Aug 2011
September 1, 2011
Um, because the only reason to assume that capital and long-term value WOULD align is based on magical kindergarden economic litanies?
Because people mistake the theoretically empirical discipline of economics for a faith-based belief system and assume that an experimentally invalidated invisible body part will do the job of civilization itself- shuffling resources to where they are most useful- despite mountains of evidence to the contrary?
Because basically, theological faith is often dangerous, but blind economic faith (including the kind preached by Thiel) is far worse- and the consequences are more devastating?
September 1, 2011
I was referred to your blog by a friend. This is tangential about income inequality and pretty interesting. Based on the post, I figured you might like it.
http://danariely.com/2010/09/30/wealth-inequality/