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Wealth disparity is a good thing - cube theory

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Wealth disparity is a good thing!

It is good
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I need to think about it
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I like pie
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Total votes : 25

Re: Wealth disparity is a good thing - cube theory

Unread postby green_achers » Wed 31 Dec 2008, 03:55:58

I don't have the numbers in front of me, but I'm pretty sure that the periods of this nations history that have had the widest wealth disparity have tended to fall just before major recessions or depressions. Think the 1920s, 2000s. So there goes the "more is better" argument.
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Re: Wealth disparity is a good thing - cube theory

Unread postby CarlosFerreira » Wed 31 Dec 2008, 07:31:55

The argument is that concentration of capital increases efficiency in the usage of that capital.
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Re: Wealth disparity is a good thing - cube theory

Unread postby kmann » Wed 31 Dec 2008, 12:16:12

If the sole criteria is to maximize capital efficiency, good. But I can think of a dozen goals that would be more important than that, like maybe minimize poverty.
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Re: Wealth disparity is a good thing - cube theory

Unread postby vaseline2008 » Wed 31 Dec 2008, 13:33:46

Although man has come a long way from being the hunter/gather, we still have quite a ways to go in the humanity dept.

"It has become appallingly obvious that our technology has exceeded our humanity." - Albert Einstein
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Re: Wealth disparity is a good thing - cube theory

Unread postby green_achers » Wed 31 Dec 2008, 14:13:22

$this->bbcode_second_pass_quote('CarlosFerreira', 'T')he argument is that concentration of capital increases efficiency in the usage of that capital.

To some extent, that makes very good, logical sense. It's the "more is better" point where it breaks down. There is no doubt that a widening wealth disparity is connected to economic disaster.

I was going to say that free market ideologues have a mental illness, but it's all ideologues tend to go to the extreme..
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Re: Wealth disparity is a good thing - cube theory

Unread postby Kristen » Wed 31 Dec 2008, 16:08:31

The whole idea of "capital" and all of the other economic jargon is all pretty recent if we look at humankind's history. I can think of many nations that have fallen into the cracks of time from having such a wealth disparity. Also material wealth does not mean capital. Hell, you're better off getting a toaster from garage sale that's twenty or thirty years old then buying a new one. You'll thank me for the advice later, trust me. Also I can't think of a time in America where the wealthy actually used their capital to better the society as a whole. Oh sure, they have their flashy charities and paint compassionate smiles on their faces. But lets be honest here, most of them are tax write offs and like a few measly million is going to help stop the hunger in Africa.

The argument of capitalism is hidden between the lines here. You need a goal, target, to increase productivity. More competition means better prices.. I do think capitalism has served its purpose but its ideology is slowly dying. May it rest in peace.
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Re: Wealth disparity is a good thing - cube theory

Unread postby CarlosFerreira » Wed 31 Dec 2008, 16:45:24

$this->bbcode_second_pass_quote('green_achers', '')$this->bbcode_second_pass_quote('CarlosFerreira', 'T')he argument is that concentration of capital increases efficiency in the usage of that capital.

To some extent, that makes very good, logical sense. It's the "more is better" point where it breaks down. There is no doubt that a widening wealth disparity is connected to economic disaster.

I was going to say that free market ideologues have a mental illness, but it's all ideologues tend to go to the extreme..


+1, all true.

cube's idea is true, but not new. The discussion against that idea is as old as the idea itself.
2009 is at the door. Let's all discuss new problems.
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Re: Wealth disparity is a good thing - cube theory

Unread postby green_achers » Wed 31 Dec 2008, 19:45:51

$this->bbcode_second_pass_quote('CarlosFerreira', ' ')Let's all discuss new problems.

I think the old ones will keep life interesting for the forseeable future.
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Re: Wealth disparity is a good thing - cube theory

Unread postby Sixstrings » Thu 01 Jan 2009, 16:51:41

$this->bbcode_second_pass_quote('', 'N')ot only is wealth disparity a good thing.
I believe the more the better!


Here's the problem with excessive wealth disparity. In a capitalist society, greed and lust for material things are the movitvating factors of the populace. The people are conditioned to forever live in envy of their neighbors -- keeping up with the Jones's.

All classes envy the next class up, this goes right up the chain to the mere millionaires envying the multi-millionaires, on up to the biggest yacht competitions among the billionaires.

This system actually works pretty well, as it squeezes maximum effort out of each individual -- everyone is always striving, always working harder to get more than what they have.

So here's where the problem comes in. When a disparity develops which is *too large*, the class below begins to feel it hopeless that they can ever rise to that next class. So the individual, who has been conditioned to live in a state of lust and greed, has no positive outlet for this energy.

This is when they fall into a state of hoplessness, unsastisfied greed, and despair. This hurts productivity, and inevitably leads to more and more social strife.

Therefore, a happy capitlist society is one in which the rungs on the ladders to success are not too far apart -- just far enough to keep everyone happily climbing away.
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Re: Wealth disparity is a good thing - cube theory

Unread postby CarlosFerreira » Thu 01 Jan 2009, 17:00:28

$this->bbcode_second_pass_quote('Sixstrings', '')$this->bbcode_second_pass_quote('', 'N')ot only is wealth disparity a good thing.
I believe the more the better!


Here's the problem with excessive wealth disparity. In a capitalist society, greed and lust for material things are the movitvating factors of the populace. The people are conditioned to forever live in envy of their neighbors -- keeping up with the Jones's.

All classes envy the next class up, this goes right up the chain to the mere millionaires envying the multi-millionaires, on up to the biggest yacht competitions among the billionaires.

This system actually works pretty well, as it squeezes maximum effort out of each individual -- everyone is always striving, always working harder to get more than what they have.

So here's where the problem comes in. When a disparity develops which is *too large*, the class below begins to feel it hopeless that they can ever rise to that next class. So the individual, who has been conditioned to live in a state of lust and greed, has no positive outlet for this energy.

This is when they fall into a state of hoplessness, unsastisfied greed, and despair. This hurts productivity, and inevitably leads to more and more social strife.

Therefore, a happy capitlist society is one in which the rungs on the ladders to success are not too far apart -- just far enough to keep everyone happily climbing away.


The problem with excess disparity is when someone has so much wealth, he/she can't invest it quick enough. That's a deadweight loss.
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Re: Wealth disparity is a good thing - cube theory

Unread postby pogoliamo » Thu 01 Jan 2009, 17:22:43

I feel obliged here.

Nobody took this post for serious?

8O

Having all wealth distributed equally creates consumer society. As a result everybody get a big SUV and you got the idea, here comes the crash.

Heaving the wealth concentrated in the hands of the few does not mean poverty for the rest, quite the opposite, it keeps them away from the stupid decisions they would otherwise make and instead of consuming the wealth in the most stupid way (just as Americans did) they would invest in productive manner. If everybody eats out its wealth in aggregate it would crash the economy, hence you have everybody poor very soon.

Productive capital makes it possible for the rest to live and enjoy the benefits of a developed economy and society.

This should be evident to most of you since I haven't heard of rather poor Americans emigrating to Africa where they immediately become mostly rich.

But please, don't miss the occasion, there should be flights to Ethiopia every day so nobody is holding you back to become a monopolistic capitalist just as nobody pointed a gun on your head to take the million dollar mortgage.
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Re: Wealth disparity is a good thing - cube theory

Unread postby CarlosFerreira » Thu 01 Jan 2009, 17:27:16

$this->bbcode_second_pass_quote('pogoliamo', '
')Having all wealth distributed equally creates consumer society.


No. Industrial production + access to credit creates consumer society. For either of them, you need concentration of capital.
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Re: Wealth disparity is a good thing - cube theory

Unread postby yesplease » Thu 01 Jan 2009, 18:45:56

$this->bbcode_second_pass_quote('CarlosFerreira', '')$this->bbcode_second_pass_quote('pogoliamo', '
')Having all wealth distributed equally creates consumer society.


No. Industrial production + access to credit creates consumer society. For either of them, you need concentration of capital.
Well, we can have wealth distributed equally among members and pooled/concentrated for specific applications. The question is does having a bunch of people owning something like a credit union or a factory or a single person/small group owning them result in a more productive society?
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Re: Wealth disparity is a good thing - cube theory

Unread postby Quinny » Thu 01 Jan 2009, 19:22:01

I've been to Dominican Republic a few times, and when flying in the flightpath sometimes takes you over the Haitian border. It's amazing the difference in forest cover that occurs at the border. I'm not talking about gradual change, there is no forest on the Haitian side, and then at the border there is suddenly jungle. It's not agricultural land either, the Haitian side is just barren hills.

The situation has I understand improved slightly recently due to international aid, but you can still observe it on google maps.

I agree with the point about mis-management, but the point should be made that Haiti followed a right wing agenda whilst DR followed a more democratic social democratic model. The levels of poverty, environmental destruction, and income disparity are muvh higher in Haiti on the same island!

The countries and there people are not inherently poor, just kept poor by the system.

The border
$this->bbcode_second_pass_quote('CarlosFerreira', 'T')he problem with Haiti is not inequality or disparity.. It's a dirt poor country, whose ecosystem has been absolutely torn apart through years of mismanagement a nd gross appropriation by bad rulers. It's a place with no capacity to support its current population and, as such, it's a country fertile in these sort of horrid schemes.
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Re: Wealth disparity is a good thing - cube theory

Unread postby CarlosFerreira » Thu 01 Jan 2009, 19:36:14

$this->bbcode_second_pass_quote('Quinny', 'I')'ve been to Dominican Republic a few times, and when flying in the flightpath sometimes takes you over the Haitian border. It's amazing the difference in forest cover that occurs at the border. I'm not talking about gradual change, there is no forest on the Haitian side, and then at the border there is suddenly jungle. It's not agricultural land either, the Haitian side is just barren hills.

The situation has I understand improved slightly recently due to international aid, but you can still observe it on google maps.

I agree with the point about mis-management, but the point should be made that Haiti followed a right wing agenda whilst DR followed a more democratic social democratic model. The levels of poverty, environmental destruction, and income disparity are muvh higher in Haiti on the same island!

The countries and there people are not inherently poor, just kept poor by the system.

The border


Thanks for sharing that. I haven't been there, I only read Jared Diamond's "Collapse", which dedicates a full chapter to the Haiti/Dominican Republic case. It's pretty much as you say, but Jared Diamond puts it to personal liking of the old Dominican dictator, who was fond of forests, as opposed to the Haitian dictators, who weren't. As I said, I am in no position to judge it, and will take your bigger knowledge than mine for it.
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Re: Wealth disparity is a good thing - cube theory

Unread postby Quinny » Thu 01 Jan 2009, 19:46:44

You can take a look on Google earth. It's particularly stark at the Southern end of the border.


$this->bbcode_second_pass_quote('CarlosFerreira', '')$this->bbcode_second_pass_quote('Quinny', 'I')'ve been to Dominican Republic a few times, and when flying in the flightpath sometimes takes you over the Haitian border. It's amazing the difference in forest cover that occurs at the border. I'm not talking about gradual change, there is no forest on the Haitian side, and then at the border there is suddenly jungle. It's not agricultural land either, the Haitian side is just barren hills.

The situation has I understand improved slightly recently due to international aid, but you can still observe it on google maps.

I agree with the point about mis-management, but the point should be made that Haiti followed a right wing agenda whilst DR followed a more democratic social democratic model. The levels of poverty, environmental destruction, and income disparity are muvh higher in Haiti on the same island!

The countries and there people are not inherently poor, just kept poor by the system.

The border


Thanks for sharing that. I haven't been there, I only read Jared Diamond's "Collapse", which dedicates a full chapter to the Haiti/Dominican Republic case. It's pretty much as you say, but Jared Diamond puts it to personal liking of the old Dominican dictator, who was fond of forests, as opposed to the Haitian dictators, who weren't. As I said, I am in no position to judge it, and will take your bigger knowledge than mine for it.
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