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by indubitable 3049 days ago
Let's think about money for a minute. Money itself of course has no meaning. But we apply meaning to it. It essentially works as a proxy for the value we assign to labor and materials - both of which are finite in reality. So obviously you'd prefer drivers make more money, so they could live a better life. Well how much? I imagine you think a ballpark for a 'fair' wage would be somewhere around $15/ride. Now let's consider your person that relies on taxi type services for transportation. We'll say they go out and return to their house once a day. And every other day they also go in/out again for entertainment, essentials, and so on. For a 30 day month that's a total of 30 x 2 + (30/2) x 2 = 90 trips. And 90 x 15 = $1350. On a yearly basis that's 365.25 x 3 x 15 = $16,436.

Well that's a lot of money. Of course I expect you'd probably say that that's because the 'bourgeois' are holding back the 'proletariat.' Okay. Let's go full on social system economics. Let's just pretend the entire GDP in the US is spread completely evenly between each and every person. And that's quite unreasonable as our GDP would decrease dramatically under such a system, but for arguments sake I'll give you that. Okay, that's easy. That's the GDP/capita or $52k. The total value of all annual goods and services in the US produced works out to $52k/person/year. But we can't forget about taxes now. To sustain our social utopia we'd need quite a high tax rate. But again, I'm going to let you have that and we'll just maintain current taxes. So we're each taking home about $42k. I'm also going to pretend that state and other taxes don't exist.

Now look at your $15/ride. If somebody was going to depend on that, they'd end up spending nearly 40% of their entire income just getting around even with a perfectly fair share of all income generated nationwide! And I gave you several unreasonably optimistic assumptions that makes that number a real lowball. The point here is that even in what I assume is your idealized system, this would not be a sustainable industry. It's very easy to see things through the lens of a victim complex because of the apparent inequality of our society. But these optics are in large part caused by inconceivably large population numbers. Imagine you earned just $1 from each person on this Earth. You'd be the 65th richest person in the world! Far from a 1%er, you'd be a 0.000000001%er. Earn $12 and you'd be the single richest person alive. Even if we just consider the USA. Imagine you took every penny Bill Gates, currently the richest person in the world, is worth and equally distributed it to each and every person in the US. That'd be a total of $275. Maybe you would say well do that to them all! By the time you're down to the 100 richest person you're only getting $17/person, and again that's for the US population only.

2 comments

Yes, it's unsustainable to be privately chauffeured around everywhere if you're not wealthy. Is this controversial? It's also ecologically and infrastructurally unsustainable so it's not something anyone actually wants.

Most people in places where wages are livable walk, bike, ride a bus or train or drive themselves around. For the infirm there are subsidized transportation services.

It's 'controversial' only in the sense that most people don't understand this. Many people seem to think that the only reason companies aren't giving great salaries to people, and 'letting' everybody earn a very good living doing most of anything, is greed. The person I was responding to went so far as to call these companies "villains." Or look at the other poster's response to this very topic. In reality, what people want is impossible, and but very few understand that. And I think the nature of this fact is often met with cognitive dissonance of some sort or another, which is sad. We are definitely becoming a nation that has an increasingly tenuous relationship with facts.
If wealth was evenly divided in the US, each household would have $760,000 [1]. Assuming a person spends $16,436 on taxi rides per year (instead of buying a new car every year), that would be 2% of their income, not 40%.

[2]https://www.federalreserve.gov/newsevents/speech/yellen20141...

Let's talk about terminology now. First is households. A household in the US is a bit more than 2.5 people. You can go ahead and bump up your costs to $41k a year on transport alone. The next is wealth. Let's hit on two points:

- Wealth is not renewable, which is why income is vastly more important. If you have $100 of wealth and you only spend 10% of it a year. You're completely broke a decade. 'Only' spending 5% of your total wealth on transport per year is a path to very rapid ruin.

- There's nowhere near the amount of 'real' wealth as there is 'paper' wealth, which is the number you're indirectly citing. Most wealth is tied up in the form of various investments, stocks, and so on. When you liquidate these assets, it results in a decline in their value. If you were to liquidate large amounts of market assets into spendable money, simultaneously, you would find the total wealth in the US to be a very small fraction of the numbers stated.