Hacker News new | ask | show | jobs
by smallnamespace 3177 days ago
Here's the most important loop that's been driving up staggering wealth inequality in our lifetimes:

- Corporations and the ultra-rich tend to be the ones who try to profit-maximize the most (because people who care about other things, don't work as hard to accumulate wealth, and because corporations that profit-maximize the best tend to survive and grow better)

- National governments since WW2 had done a decent job of redistributing wealth, but since there are increasing returns to scale on investing in tax avoidance/evasion, it is the richest individuals and corporations that are best able to avoid taxes and move wealth offshore

- It is cheaper and easier to cut a sweetheart tax with a corporation or a rich individual to temporarily attract capital to a nation-state than to generate wealth the hard way through education and infrastructure investment

So our global capitalist system for the past few decades has simultaneously selected for the most selfish, profit-maximizing institutions and individuals, while also setting up a race to the bottom between nations (and even cities and states -- see Amazon's bid for a 2nd headquarters or Tesla's Gigafactory) to see who can give the biggest tax breaks to those at the top.

1 comments

That's not the result of 'loops in the network'. That's the result of the memory effect of wealth. See, this is the problem with handwavy gibberish.
> That's not the result of 'loops in the network'. That's the result of the memory effect of wealth. See, this is the problem with handwavy gibberish.

I'm not sure if you're intending to be ironic, but you've achieved a gold star for irony nonetheless. Google "memory effect of wealth" to see if you come up with any meaningful, non-handwavy definition if your post was actually sincere.