Wednesday, June 25, 2014

A thought. No research.

I had a thought recently about inequality. I haven't done any research on this, and I have no degrees or expertise to take this anywhere.

There are two problems with a capitalist system, or a moneyed economy in general. These problems have been noted time and again, not just by Marx. Accumulated wealth stored in the form of money or various instruments simply attracts more wealth. It's as though wealth has its own force of gravity, and part of it is due to compound interest. I'm not arguing for the abolition of compound interest, I'm just pointing out it's effect on wealth distribution: those who have money will make more money. In fact, there's really no "trickle down." The wealthy sees that trickle as leaks they must fix. However, there is a trickle, rather a flow upward. It over-rewards the wealthy.

The second problem is the ease at which accumulated moneyed wealth can be turned into other kinds of power. It can buy weapons, it can buy politicians, it can buy resource monopolies (like the way water rights are being bought up).

That seems to be the flaw in a moneyed economy in general.

So, my radical thought is perhaps rather than taxing income, accumulation that should be taxed and redistributed?

I see that the library now has my copy of Capital in the 21st Century by Thomas Picketty. So, maybe I'll become better informed. 


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