General Economics Discussion

Desolous wrote: This assertion gave me pause. I had never thought that to be the case, until I began reading Piketty's book. What do you guys think? Is inequality built into the workings of modern capitalism? And if so, is this beneficial to society as a whole? If not, how can we as Jedi address this inequality?

Wouldn't this depend on the system of capitalism being used? Is capitalism one thing? Wouldn't it be as many things as there are state-guided capitalist economies.

What does each version of capitalism have to say about inequality? Even if inequality is shown to be a feature of each this does not mean it is a necessary feature of each. Further even if it is shown that inequality is a necessary feature this does not in itself discredit capitalism as an economic system.

Looking at the richest 1% in society is backwards, instead look at the poorest 1%. Only concern yourself with the wealth of your neighbours to ensure they have enough.

This is a global effect of living in a capitalist system:

Madhatter wrote: They lack the courage of their convictions. They do not put forward that they should have to give anything up. They always think that their level of income and lifestyle is ok and that its always the bigger guy that is the evil one. They lack the stomach to give up their lifestyle and wealth while demanding that others have their wealth and lifestyle hamstrung.

Do you know Picketty? Do you know his convictions? Does he think his level of income and lifestyle are ok? Did you make a number of generalised assumptions?

that when the rate of return on capital (r) is greater than the rate of economic growth (g) over the long term,

Can't happen for the long run, their linked to each other. When their not lockstep we have inequity. We would call that an arbitrage situation and a capitalist would feast on it for as long as it is profitable.

the result is concentration of wealth, and this unequal distribution of wealth causes social and economic instability

Of course....the capitalist will continue to feast until circumstance would force the to do otherwise.

'is not an accident, but rather a feature of capitalism'.

Yes it is.

is this beneficial to society as a whole?

Only as a byproduct. Laws help though. Capitalist don't like laws governing their profit motives.

how can we as Jedi address this inequality?

Not much until you have the money and power. Then will you care? Would you want laws taking away what you worked hard for?

Remember the golden rule, "he who has the gold makes the rules"

Rickie wrote:

is this beneficial to society as a whole?

Only as a byproduct. Laws help though. Capitalist don't like laws governing their profit motives.

Laws go both ways given they also enable capitalism.

Rickie wrote:

how can we as Jedi address this inequality?

Not much until you have the money and power. Then will you care? Would want laws taking away what you worked hard for?

Remember the golden rule, "he who has the gold makes the rules"

Assuming your personal wealth is between $10,000 and $100,000 , you are already in the top 21% wealthiest income bracket in the world. Ask yourself what you do with your money and power.

"Laws go both ways given they also enable capitalism."

Laws that are greatly influenced by political contributions.

I don't know where the cut off is for a definition of wealth but the capitalist I'm referring too have hundreds of millions. They are the rule makers.