Some newb thoughts on AC (long)

[tomdemaine]

What is your definition of necessary?

[m_the0ry]

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a) why are you focused on wealth distribution as opposed to the absolute wealth of the lower classes? the market is not a zero-sum game. the rich are rich because they create wealth, not because they steal it.


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AC is sort a novel concept to me so you'll have to be patient. I must be misunderstanding something because I don't see how AC is non zero-sum. Capital cannot come from nothing or else it would have no value. Just for reference, is this (below) creating wealth or stealing it?

http://peterrost.blogspot.com/2007/0...rs-ceo_16.html


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b) your statistic is completely absurd. 01% controlling 99%...yeah right.

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I made that up and it is quite absurd. Still the US Census Bureau has been tracking a rising Gini Coefficient, a common wealth inequality metric, for the last 50 something years. It's already at unstable equilibrium, but without tax bracketing or regulations it converges to absurd numbers. Just look at the situation in South Africa to see what I mean.

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3) The state cannot provide protection for drug companies, insurance companies, banks and other massive businesses, meaning that they must face the brunt of competition. (With a six-figure loan and a handful of mexicans, I could produce morphine and thebaine derivatives more cheaply than Merck. I don't think they'd like that.)

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And then what stops them from buying your startup for exactly twice that six figure loan and remaining the only force in the market? The Monopoly problem has never had anything to do with market entry costs, and it has always been solely an issue of the dominant market force simply buying out competition. With no government nothing stops them from buying out competition.

[AlexM]

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I must be misunderstanding something because I don't see how AC is non zero-sum. Capital cannot come from nothing or else it would have no value.

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Capital doesn't come from nothing, it comes from work and knowledge. As more people work and society learns more, more wealth is generated. I'm not entirely sure how to explain this as it just seems obvious to me, but I'd say the best example is the stock market, where if you invest equally across the board, you profit. This wouldn't happen if the economy was zero sum.

[almostbusto]

AC is not zero sum for the same reason all economies aren't zero sum, people are productive. year after year total production increases. individuals labor to create wealth, and wealth is created.