Extreme power inequality seems to be the default state of human society. Power concentrates until it's maximally concentrated, then stays there. Power shakeups seem to usually replace one group of elites with another group of smaller or the same size.
Exceptions to this rule come about for specific reasons. Before the industrial revolution, there just wasn't that much power to go around. Everyone was working their land for sustenance, and the rent-seeking nobility extracted some percent of production because that's what there was to extract. When the industrial revolution came, those who figured out how to exploit it became the new nobility and worked their employees to the bone. It was only after actual, bloody, war between the factory owners and the employees that we got labor rights, which were a truce agreement. And that agreement's been steadily declining since Reagan. It took a while because the beneficiaries of the labor rights era were able to hold onto their wealth and pass it down to their children, but now we're back in the same factory feudalism situation again, but with different technological status.
generally the power shakeup that replaces an elite with another elite is one that replaces an old elite with a rising elite better able to take advantage of some economic conditions the old elite is ill-equipped to take advantage of
Great works on this subject, to my mind refuting your nebulous thesis, include Debt by Graeber, Dawn of Everything by Graeber and Wengrow, and Mutual Aid by Kropotkin.
>Everyone was working their land for sustenance, and the rent-seeking nobility extracted some percent of production because that's what there was to extract
Until the black death came in the 1300's and killed an estimated 30–60% of Europe's population, and now the nobility had nobody to rent seek or even to work their land.
So then, for the first time ever, the surviving workers gained bargaining power as landowners (lords) competed for labor, leading to high cash wages, better working conditions, and more freedom for peasants, because the feudal lords hadn't yet figured out how to replace the peasants with slaves, H1-Bs and illegals from across the planet.
So according to history, including your post-WW1 example, the only times peasants gained bargaining power was when millions of them died through world wars and global pestilence.
Looking at recent unfolding history, "There's something very familiar about all this" -Biff Tannen
I don't know why you're down voted. Perhaps the observation that inequality is often and the noble savage utopian dream of "all pigs are equal" is not the norm is too a bitter pill to swallow
We do need to include the vast human pre-history when makings sweeping claims about the natural state of human society. There might be something about civilizations that concentrate power which wasn't seen nearly as much among hunter-gatherer groups. If so, there might be steps that can be taken to counter it (indeed the past several centuries would strongly suggest so).
I believe it's because in many cases, the unspoken follow on to "inequality is the norm" is "and so it's useless (or actively harmful) to try to defy that norm."
Not that above commentator is meaning that.
But many "thought leaders" i.e. Jordan Petersen play around with similar motte-and-bailey - "hierarchies are natural" (examples with lobsters, apes, whatever) --> "existing hierarchies should be preserved" (not defended in the argument but implied).
Probably some downvoters are reacting to the structural similarity, although taken in good faith i think above commenter makes a fine point about the historical pattern of periods of equality being short lived and brought about by great intentional effort while sliding back to inequality seems to occur all of the time.
What are these practical ways to solve it? And who do you think will implement them? Especially when Billionaires control the opinions of a big chunk of the population.
You can read about the transition from the Gilded Age to The Progressive Era in US history for potential solutions. Anti-trust and political reform is a bit part. Political opinions were controlled undemocratically during that period as well through political machines. Direct election of senators, direct primaries, women’s suffrage were enacted to help with that.
The US despite everything still runs a popular vote driven democracy that is clearly capable of implementing on short notice, sweeping changes to policy.
The problem remains that the US voter consistently demonstrates they don't actually care about these problems though, compared to using the state to intentionally inflict misery on subgroups they don't like.
The most radical thing the current administration proves is how unimportant taxes and cost of living actually were to its voters, given the broad support it retains despite overtly and continuously raising or making both those problems worse (read cares as: "understands" - for a group which wouldn't shut up about it, apparently significant changes aren't crippling enough to get them to change their vote in many cases).
If you have a vanguard with special privileges then congrats, you've replaced the inequality of Capitalism with another inequality. This is the exact challenge GP is talking about; it's hard to avoid the tendency for power to accumulate.
What about the quantity of the inequality? If our equality at the moment is 1 to 60, certainly 1 to 6 is better, no?
I cannot see a way out other than socialism, unfortunately.
Why unfortunately? Because under current conditions a revolution seems very unlikely, and if you really decide to become a socialist, committed and organized, you risk a lot.
You risk imprisonment, getting beaten by the police, going to prison for quite some time. And by investing your time and energy studying Marxist theory, Lenin, matters regarding the unique material conditions of the country you are revolting in, you risk your 'field', by field I mean you risk your occupation or profession. For example, you are a biologist, and you can't see a way out of this capitalist predicament, and feel a strong responsibility towards the world, you are now robbed of your time because you have to study socialist theory.
The other person in your field is indifferent (not a moral judgment) about politics, and will outperform you.
... was an ideology that gave 200 million of people universal healthcare, universal childcare, public housing and increased luteracy rates but took away democracy and national self determination, unleashed genocide and allied with literal Hitler
Most ideologies are terrible in those regards. The various forms of democratic capitalism have been pretty big on genocide and oppression too. Most of them were were pretty unconcerned with Hitler until after the marxist-leninists were already fighting him.
How did it take away national self-determination exactly? The Soviet model regarding self-determination was definitely better than what any other nation had. I probably don't have to mention that Lenin wrote a whole book on national self-determination, defending the right to self-determination on the condition that it does not harm the socialist project.
Although one may call it superficial, a mere formality no indicator of self-determination in the Republic, it is remarkable that the Soviet ruble had 15 local languages printed on the banknote.
My hot take is that wealth inequality is the least bad problem we could have, if it is even a problem at all.
What people are actually experiencing is not wealth inequality, but cost disease. Vital things (housing, healthcare, education) are more expensive - and that's mostly the fault of state action.
1) You have to get it out of your head that it is enough when everyone has X standard of living. It isn't.
It's enough when less than a critical threshold of the population is dissatisfied, and that dissatisfaction can come no matter what the median/lowest standard of living is. This is just how societies work, uniformly.
2) Money is a ledger supported by a social contract. Spending wealth in ways that erode the social contract is bad. I think we can all agree 500M dollar yachts, empty luxury apartment buildings, and buying up shorelines in populated areas are all bad looks, and therefore, erode the social contract. The wealthy really need to step in and police each other socially here, if they want to continue being wealthy.
I'm not well-versed in "cost disease", but yes, standards go up. Cars have to have airbags and backup cameras and infernal electronic nannies. So an (alleged) increase in safety has been mandated, and the costs are obligatory. IOW, your risk of dying in a car goes down, but it doesn't come for free.
Medical care is getting better, insurance is required to pay for more and more things, but that drives up insurance costs.
In my county, fire sprinklers are required in all new houses.
Costs go up, but at least, in theory, you're getting something in return.
You're welcome to blame the state. Without those actions, things would be somewhat more affordable. But it seems pretty clear from the data on inequality that inequality is a much bigger factor in bidding up living costs than the fact that I need to install sprinklers in my house, even if sprinklers are a very large cost relative to my income.
Politically wealth inequality is a problem as the wealthy have more means available to them to influence votes, candidates and appointments. So you have a society that's partly democratic but with a lot of unequal influence at the top.
Two of the three (housing and education) don't seem to be caused by that.
Neither restrictive zoning, nor the administrative bloat in academia that caused tuition to skyrocket, were lobbied into existence by people like Bezos and Musk. They are result of tireless lobbying of relatively unimportant people seeking their own little rent.
One of the pillars of capitalism is that the entire economy is more efficient when decision making power is dispersed as close as possible to the people making economic decisions aka what they buy.
When we have ended up in a situation where a handful of people are making all the economic decisions because they have all the money, there is no functional difference between that situation and a command economy.
If you’re a believer in capitalism as a tool to eliminate scarcity you should view the existence of billionaires(adjust for inflation) over the longer term as policy failures that are eroding capitalisms ability to create more and more.
> As a resident of a wealthy West-Coast New-World city, the effects of pathological inequality are in my face every day: Bentleys gleaming on the road, ragged people huddled in the rain cadging cash outside the drugstores, thousands homeless.
I also live in a wealthy West-Coast New-World city, and attributing these phenomena to pathological inequality badly misdiagnoses the problem. Most visibly homeless people in wealthy west coast cities are severely mentally ill in ways that prevent them from living a normal life or even living peacefully with other people without some kind of institutionalization, which local authorities are reluctant to do because there's no nice way to institutionalize people.
In some places, it's possible for people with a moderate amount of dsyfunction to be able to scrape together enough resources in order to rent cheap, low-quality housing; but in wealthy west coast cities there is a massive housing shortage that is downstream of decades of underbuilding, so all types of housing are very expensive. The underbuilding was and is mostly driven by large numbers of middle-class homeowners who primarily care about the negative externalities of construction and density affecting the place where they live and own their own homes.
Neither of these problems has much to do with extremely wealthy people, or wealth inequality in a general sense.
I'm highly unconvinced of the proposition that most homeless are severely mentally ill; the data I've seen doesn't support it. That's some of it, and also addiction. But a lot of them just can't make the rent.
> Most visibly homeless people in wealthy west coast cities are severely mentally ill in ways that prevent them from living a normal life or even living peacefully with other people without some kind of institutionalization
Sources? This just sounds like cope from a wealthy individual who wants to feel better about not helping the problem.
For the vast majority of human civilization, all taxes were based on wealth. Your emperor, pharaoh, czar, or whoever was in charge sent a dude around to take a bit of everybody's stuff. Not how much income they made but how much stuff they actually had. It's only been the last 120-ish years that the idea that wealth and income were totally different things as far as taxation is concerned emerged.
I think almost everybody would be better off if taxes were something like 1% of total assets rather than off the top of your income.
> I think almost everybody would be better off if taxes were something like 1% of total assets rather than off the top of your income
No thanks. Any discussion about tax reform has to start with government spending otherwise it's not serious. Nobody wants to gove away a slice of their net worth to pay for bullshit wars and ballrooms.
I think that could generally work domestically, as in, "I don't have anything to give you, I gave/lost it all to Bob...go get it from him". But it would need to be modified with a tax on any wealth leaving the country/jurisdiction, so I can't just make $1B and then send it all to my aunt in $COUNTRY / $STATE / $CITY with low/no wealth taxes and then claim that I don't have any wealth (unless there were sensible reciprocity agreements for tax revenue reapportionment).
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But I'm not sure if your historical claims are accurate. I believe a lot of taxes were a fraction of the expected yield of land, which is more complicated than just "taxing wealth vs. income". Yes, the taxes would go up if you owned more land, which sounds like a tax on wealth. But the imputed tax base would be based on historical yields (income) because the quality of the soil would vary (which also could be construed as a tax on wealth because higher quality soil meant land might be worth more per acre). It was also based on the weather during that growing season, if yields were down in that area then taxes would be lower that year, which sounds more like an income tax than a wealth tax.
You also said "its only been about 120 years since wealth and income were different":
The Christian tithe that became de jury under Charlemagne in 779 A.D. was a strict 10% tax on land yield each year (~income tax) but other empires and lords used fixed quotas (~wealth tax), and records exist that these could have brutal effects during years where weather resulted in lower yields.
In 1899 the UK instituted a 10% levy on annual incomes over £200, with a graduated rate for incomes between £60 and £200. Income taxes had a hiatus from 1816-1842 but has been permanent since the "Income Tax Act of 1842".
The Mit'a (Inca Empire, Pre-1532) taxed individuals "time". Which I think is more of an income tax than a wealth tax? Adult men had to spend a certain number of days each year working on state projects - like building roads, farming state lands, or fighting in the army. They didn't have currency. Their economy was based on centralized planning, labor taxation (mit'a), and state redistribution of goods.
For the vast majority of human history, only the ultra wealthy had any money. And then, just as now, taxing only those people would not yield sufficient resources to fund the state.
The problem is, and always will be, what happens to me is I am out of work. No one wants to force people to liquidate assets they might need to work, live, etc in order to pay an asset tax.
Then you get to the dividing line of, but what about the ultra wealthy? Well, sure, but then you write an insanely obtuse tax code to try and capture that wealth while leaving everyone else alone and the targets are highly motivated to find loopholes.
Progressives intuitively understand that it’s not worth the hassle to try and means test entitlements yet seem to miss the fact that trying to manage a confiscatory bureaucracy would have the same issues.
Yes. And so we have the IRS whose enforcement measures fall disproportionately upon the disadvantaged and which is the only law enforcement agency permitted to open proceedings against citizens without evidence of wrong doing. I would hold this up as the archetypal bad example.
Increased taxation would be defensible if it was paired with spending reform. Increasing the tax to just inflate a bureaucracy helps nobody. Increasing the tax and then directly paying people, with no PMC in the middle, seems win-win-win.
I don't think just paying people will make any difference at all. Most of the chronically poor in US at least have underlying problems such as addiction, schizophrenia or other affective disorders. Most chronically homeless people have turned down multiple state subsidized living options or have been booted from them for anti-social behavior. Studies routinely show that 30-40% of food stamps are sold for pennies on the dollar to pay for drugs or other unnecessary things.
The other major issue with "free money" is that it is purely inflationary, unlike wages which offset most of their price pressure by providing a commensurate amount of goods/services. When you hand everyone a million dollars the price of everything just goes up, both because there's a flood of money and because there's even less incentive to produce something to buy with it.
I think there's any compassionate argument to be made for helping the indigent, but easy ideas like "taking money from job creators and value producers to pay for needles and degeneracy" are never going to work at all.
It's a bit of a trope to say that billionaires are hoarding wealth via financial shenanigans when all of their wealth is tied up in job and value creation.
The us govt wastes by some estimates 30% of its budget. Trillions annually. Have to start with the waste and fraud. Empty daycares are not a good use of hard-earned tax dollars and have a massively pernicious effect on the society. They're not taking care of kids or paying teachers. Just pure inflationary greed.
I'd like to see a few links to support your assertions in the first paragraph because, with respect, I have not seen evidence which supports them.
On the other hand, multiple jurisdictions have run trials of UBI (universal basic income) and unless I misread the reportage, the results have been good.
>It's a bit of a trope to say that billionaires are hoarding wealth via financial shenanigans when all of their wealth is tied up in job and value creation.
Ideally you'd spend the taxes on things that help people, but I would argue that even simply destroying the taxed wealth would be an improvement over what we have now, if only in that it would counter wealth/power disparity and enable democracy to work better. Allowing a subset of the population to accumulate power divorces their interests from the majority and represents the biggest threat to modern society.
It would be a huge waste though. We should probably spend it on food, education, and healthcare instead.
The government decides who is owed what material goods. This is known as property rights. The destruction in this case would be equivalent to transferring the ownership of some factories to the government, exchanging those factories for something flammable on the open market and then setting fire to said flammable things. It's obviously wasteful, but definitely possible, and it won't directly and measurably impact anyone's quality of life. Investor confidence in your country will nosedive, though.
Reversing Citizens United, publicly funding elections, installing a functional regulatory regime and equitable taxation would go a long way.
Perhaps we could also engage in less ill considered military adventurism as well? Causing a domestic affordability crisis as a distraction and a salve for one's ego seems like a bad idea.
Regarding the IMF report, is it actually harder to hide wealth than income, or is it that there are so few global taxes on wealth that nobody's currently bothering to hide it? It seems like income, being a continuous series of transactions, would be the more difficult of the two.
Fun fact: when there was meaningful data on Ukraine, it was number 1 in the world by wealth inequality and at the same time had the best score at income equality.
Likelt has to do with not having any property or wealth taxes, but having modest incone taxes that were rigorosly collected
I bet that both are fairly easy to hide, but some forms aren't. It's hard to hide when money arrives in your bank account and it's hard to hide that you own 51% of Tesla shares. You can do either one of those through a proxy however, which makes it harder to track down, not impossible (why does 51% of Tesla shareholding always agree with this guy? Why's he shilling Offshore Panama Corp LLC products so hard?)
I think it varies - each are easier/harder to hide in different ways at different scales. It's the "convicting Al Capone for tax evasion" thing. They didn't need to prove where his income came from, they could just show that his wealth was clearly higher than his declared income could have possibly yielded.
A fairer way would be requiring all excess profits be invested in hard assets like factories, infrastructure etc. capital should be forced into competition and create excess capacity.
Y'all can say violence isn't the answer all you like, but not addressing this will cause violence. Mass, misguided, idiotic violence of the like few of us can imagine.
Either we make significant change whilst we still have some capacity to reason, or we consign ourselves to the fate of animals, following our impulse gradients to the places they invariably lead.
The elephant in the room is why governments need more money: old age benefits like social security. I fear that taxing wealth will just be a tax on future investment while funnelling that wealth to the elderly. Already, folks are pushing to make the key asset owned by the old - housing - free from property taxes (if you're over 60, naturally)[1] which will only push housing prices up and drive more budget deficits that needs fresh tax revenue.
I don't expect Social Security (or my country's equivalent) to exist in anything like its current form when I'm old enough to retire. This is the last hurrah and it's shocking how we're pulling out all the stops to make it happen.
Well, healthcare is an increasing piece of government spending all over the world, and the population is aging, so politics and policy aside, that number is going to go up.
Even if the government took the money and burnt it that would be a net good for society since it would lower inequality and thereby decrease power imbalances.
The value of currency like other things is governed by supply, so destroying some does not damage anything real in the world, just increase the purchasing power of the other dollars in circulation.
You're describing deflation which leads to job losses. If you do nothing else, the policy you're advocating for would lead to a recession, if not a depression.
We are playing with two sets of dice, I realize mine are weighted and rolling higher than yours. Do I A- offer to switch dice B- not say anything C- offer to share D- decide not to play?
In Europe governments make up such a big part of GDP now in some cases nearly half of it that it becomes silly to talk about the evil capitalist. We should be talking about the graft and poor spending of that money.
Well the article wasn’t speaking about Europe but Canada and America.
And if you read the article you will see his mention of the wealthy that are advocating for higher taxes/better wealth distribution and explicitly says that not all wealthy are The Enemy.
Do you really understand class war? Your suggestion is having the state legislate this away as if the state isn't fully compromised by the capitalist class?
This is the main lesson of the 20th century that liberals refuse to accept; that the state is controlled by capitalist class interests. Capitalist democracy is a curated racket.
And even if we were to force legislation exactly as described above it can't and hasn't lasted long due to the incentives ($billions) to undo it. They will go as far as to kill people for this, and they have.
Legislation does NOT fundamentally change existing power relations. They have this shit in their pockets and you're just saying that we should have them take it out of their pockets.
The western allergy towards Marxism is one of the most detrimental cultural positions the working class has EVER faced.
History shows that the "fundamental change to power relations" is just a shift from moneyed interests to political/bureaucratic interests. Which is worse because while moneyed interests have power money can buy, political/bureaucratic interests have the power of state coercion.
"They will go as far as to kill people for this" is rich coming from someone preaching Marxism, for which millions have been murdered.
This is a ridiculous oversimplification of complex historical processes. The biggest change to power relations by far were the bourgeois revolutions, which ostensibly shifted "political/bureaucratic" interests to "moneyed interests," which is quite literally the opposite of what you're saying. At any rate, the dichotomy is completely misleading since "moneyed" interests and "political/bureaucratic" interests are not at all mutually exclusive; in reality, they are virtually synonymous within the capitalist system. Also the notion that "moneyed" interests do not possess the power of state coercion must be some kind of perverse joke. Do you not even have a cursory knowledge of history? There are so many instances of money equating to state coercion that it's mind boggling anyone would say this with a straight face. Do you not know what a pinkerton is? Are you not paying attention to what the current president is doing both domestically and overseas? The idea that any advocate of capitalism would get on their high horse and moralize about Marxism is pathetic.
How is the government worse than the corporation or billionaire for coercion?
Libertarians always try to convince us that the corporate boot tastes so much better than the governmental one, but they both taste like leather to me and I at least have a say, however small, on the government.
In the west, the prevalent idea is that socialism/communism lost and that there is nothing beyond capitalism. This is it, we will forever live in a social-democracy state. I wonder who promotes this idea.
And it seems like the winners capitalism brought about don't actually care all that much about both "social" and "democratic" aspects of "social democracy", if they stand in the way of ever increasing profits.
> In the west, the prevalent idea is that socialism/communism lost and that there is nothing beyond capitalism.
It didn't just "lose", it killed millions of its own people in the process. Having been born in a communist state, I'd rather clean toilets in American than do anything else in the USSR.
Edit: It's basically impossible to communicate the day-to-day misery and deprivation of late stage Communism without sounding like a crazy person. My parents were both university-educated professionals but we lived in a tiny, one-bedroom apartment with occasional hot running water and only newspaper for wiping after the bathroom. This was considered a rather affluent existence.
To find something similar in today's America you'd have to go to the worst, most impoverished parts of town and even then...
In the most impoverished part of my town (just kidding, in every part of my town) people live in the culverts that fill up with water when it rains. I am not sure what they do when it rains.
But why is it successful? Where did their money come from? How sustainable is it? The core issues from capitalism still exist there, but they have more money with a smaller population.
I think it helps to draw some distinctions here. Nordic countries have strong social welfare systems, but private property and free enterprise are still a thing. This is not at all the same as communism where everything is ultimately state owned and operated.
China is an interesting example too because it's basically capitalist with strong government oversight. So you can go hog wild on exploiting labor and amassing wealth as long as you don't oppose the overall goals of the government. We'll see how long they can keep it running - the problem with most authoritarian systems is that they're only as good as their current leadership, and when that changes things tend to fall apart.
I think basically capitalist oversimplifies a bit, both because private business holds no monopoly on exploitation of labor in any society, and because many of their large businesses are wholly owned by the state with the CEO appointed by the party. Here is an interesting interview on the subject with a relevant timestamp. https://youtu.be/e297mEZ479E?si=ASV_u9ZoN36wI4M5
The nuance that capitalist businesses do not hold an exclusive interest now or historical pioneering of labor exploitation is valuable to keep in mind because no matter how far the project of labor power spreads, all we workers must keep in mind that we have a primary and vested in empowering the most diminished of our society.
Ok, but you're not exactly a research sociologist, are you? It's not like you've made a study of poverty in America—let alone poverty on the imperial periphery, like El Salvador, Guatemala, or Honduras where we've been undermining democracy and labor rights in order to keep outsourced wages low. Now there are the places you can see real poverty that makes your Soviet austerity seem downright cosy.
So it's just not fair, your comparisons. You're not looking at the whole picture.
Perhaps you haven't been paying attention to the skyrocketing prices of fuel, food, and healthcare... Or did you just think all those people just above the poverty line disappear when the livable income floor gets hydraulically jacked up?
Yeah I'm glad somebody's talking about it. Wealth inequality seems like it will be THE defining issue of our lives (accelerated drastically by AI).
I think there are many practical ways to solve it, and would love to see more proposals out there. Instead I tend to see nihilism or division.
Extreme power inequality seems to be the default state of human society. Power concentrates until it's maximally concentrated, then stays there. Power shakeups seem to usually replace one group of elites with another group of smaller or the same size.
Exceptions to this rule come about for specific reasons. Before the industrial revolution, there just wasn't that much power to go around. Everyone was working their land for sustenance, and the rent-seeking nobility extracted some percent of production because that's what there was to extract. When the industrial revolution came, those who figured out how to exploit it became the new nobility and worked their employees to the bone. It was only after actual, bloody, war between the factory owners and the employees that we got labor rights, which were a truce agreement. And that agreement's been steadily declining since Reagan. It took a while because the beneficiaries of the labor rights era were able to hold onto their wealth and pass it down to their children, but now we're back in the same factory feudalism situation again, but with different technological status.
That sounds like the same observation that Thomas Jefferson made:
"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants."
generally the power shakeup that replaces an elite with another elite is one that replaces an old elite with a rising elite better able to take advantage of some economic conditions the old elite is ill-equipped to take advantage of
https://medium.com/luminasticity/the-new-exploiters-9d8a0684...
Great works on this subject, to my mind refuting your nebulous thesis, include Debt by Graeber, Dawn of Everything by Graeber and Wengrow, and Mutual Aid by Kropotkin.
I think you'll find that any specific change in political directions come about from specific reasons (what would even be the alternative?).
>Everyone was working their land for sustenance, and the rent-seeking nobility extracted some percent of production because that's what there was to extract
Until the black death came in the 1300's and killed an estimated 30–60% of Europe's population, and now the nobility had nobody to rent seek or even to work their land.
So then, for the first time ever, the surviving workers gained bargaining power as landowners (lords) competed for labor, leading to high cash wages, better working conditions, and more freedom for peasants, because the feudal lords hadn't yet figured out how to replace the peasants with slaves, H1-Bs and illegals from across the planet.
So according to history, including your post-WW1 example, the only times peasants gained bargaining power was when millions of them died through world wars and global pestilence.
Looking at recent unfolding history, "There's something very familiar about all this" -Biff Tannen
I don't know why you're down voted. Perhaps the observation that inequality is often and the noble savage utopian dream of "all pigs are equal" is not the norm is too a bitter pill to swallow
We do need to include the vast human pre-history when makings sweeping claims about the natural state of human society. There might be something about civilizations that concentrate power which wasn't seen nearly as much among hunter-gatherer groups. If so, there might be steps that can be taken to counter it (indeed the past several centuries would strongly suggest so).
I believe it's because in many cases, the unspoken follow on to "inequality is the norm" is "and so it's useless (or actively harmful) to try to defy that norm."
Not that above commentator is meaning that.
But many "thought leaders" i.e. Jordan Petersen play around with similar motte-and-bailey - "hierarchies are natural" (examples with lobsters, apes, whatever) --> "existing hierarchies should be preserved" (not defended in the argument but implied).
Probably some downvoters are reacting to the structural similarity, although taken in good faith i think above commenter makes a fine point about the historical pattern of periods of equality being short lived and brought about by great intentional effort while sliding back to inequality seems to occur all of the time.
What are these practical ways to solve it? And who do you think will implement them? Especially when Billionaires control the opinions of a big chunk of the population.
You can read about the transition from the Gilded Age to The Progressive Era in US history for potential solutions. Anti-trust and political reform is a bit part. Political opinions were controlled undemocratically during that period as well through political machines. Direct election of senators, direct primaries, women’s suffrage were enacted to help with that.
And when these things aren't possible?
The US despite everything still runs a popular vote driven democracy that is clearly capable of implementing on short notice, sweeping changes to policy.
The problem remains that the US voter consistently demonstrates they don't actually care about these problems though, compared to using the state to intentionally inflict misery on subgroups they don't like.
The most radical thing the current administration proves is how unimportant taxes and cost of living actually were to its voters, given the broad support it retains despite overtly and continuously raising or making both those problems worse (read cares as: "understands" - for a group which wouldn't shut up about it, apparently significant changes aren't crippling enough to get them to change their vote in many cases).
Marxism-Leninism
If you have a vanguard with special privileges then congrats, you've replaced the inequality of Capitalism with another inequality. This is the exact challenge GP is talking about; it's hard to avoid the tendency for power to accumulate.
What about the quantity of the inequality? If our equality at the moment is 1 to 60, certainly 1 to 6 is better, no?
I cannot see a way out other than socialism, unfortunately.
Why unfortunately? Because under current conditions a revolution seems very unlikely, and if you really decide to become a socialist, committed and organized, you risk a lot.
You risk imprisonment, getting beaten by the police, going to prison for quite some time. And by investing your time and energy studying Marxist theory, Lenin, matters regarding the unique material conditions of the country you are revolting in, you risk your 'field', by field I mean you risk your occupation or profession. For example, you are a biologist, and you can't see a way out of this capitalist predicament, and feel a strong responsibility towards the world, you are now robbed of your time because you have to study socialist theory.
The other person in your field is indifferent (not a moral judgment) about politics, and will outperform you.
... was an ideology that gave 200 million of people universal healthcare, universal childcare, public housing and increased luteracy rates but took away democracy and national self determination, unleashed genocide and allied with literal Hitler
Most ideologies are terrible in those regards. The various forms of democratic capitalism have been pretty big on genocide and oppression too. Most of them were were pretty unconcerned with Hitler until after the marxist-leninists were already fighting him.
Not sure what point you're trying to make.
How did it take away national self-determination exactly? The Soviet model regarding self-determination was definitely better than what any other nation had. I probably don't have to mention that Lenin wrote a whole book on national self-determination, defending the right to self-determination on the condition that it does not harm the socialist project.
Although one may call it superficial, a mere formality no indicator of self-determination in the Republic, it is remarkable that the Soviet ruble had 15 local languages printed on the banknote.
My hot take is that wealth inequality is the least bad problem we could have, if it is even a problem at all.
What people are actually experiencing is not wealth inequality, but cost disease. Vital things (housing, healthcare, education) are more expensive - and that's mostly the fault of state action.
Two things:
1) You have to get it out of your head that it is enough when everyone has X standard of living. It isn't. It's enough when less than a critical threshold of the population is dissatisfied, and that dissatisfaction can come no matter what the median/lowest standard of living is. This is just how societies work, uniformly.
2) Money is a ledger supported by a social contract. Spending wealth in ways that erode the social contract is bad. I think we can all agree 500M dollar yachts, empty luxury apartment buildings, and buying up shorelines in populated areas are all bad looks, and therefore, erode the social contract. The wealthy really need to step in and police each other socially here, if they want to continue being wealthy.
I'm not well-versed in "cost disease", but yes, standards go up. Cars have to have airbags and backup cameras and infernal electronic nannies. So an (alleged) increase in safety has been mandated, and the costs are obligatory. IOW, your risk of dying in a car goes down, but it doesn't come for free.
Medical care is getting better, insurance is required to pay for more and more things, but that drives up insurance costs.
In my county, fire sprinklers are required in all new houses.
Costs go up, but at least, in theory, you're getting something in return.
You're welcome to blame the state. Without those actions, things would be somewhat more affordable. But it seems pretty clear from the data on inequality that inequality is a much bigger factor in bidding up living costs than the fact that I need to install sprinklers in my house, even if sprinklers are a very large cost relative to my income.
Politically wealth inequality is a problem as the wealthy have more means available to them to influence votes, candidates and appointments. So you have a society that's partly democratic but with a lot of unequal influence at the top.
But that state action is the direct result of wealth's influence over the state and how it operates
Two of the three (housing and education) don't seem to be caused by that.
Neither restrictive zoning, nor the administrative bloat in academia that caused tuition to skyrocket, were lobbied into existence by people like Bezos and Musk. They are result of tireless lobbying of relatively unimportant people seeking their own little rent.
> if it is even a problem at all.
One of the pillars of capitalism is that the entire economy is more efficient when decision making power is dispersed as close as possible to the people making economic decisions aka what they buy.
When we have ended up in a situation where a handful of people are making all the economic decisions because they have all the money, there is no functional difference between that situation and a command economy.
If you’re a believer in capitalism as a tool to eliminate scarcity you should view the existence of billionaires(adjust for inflation) over the longer term as policy failures that are eroding capitalisms ability to create more and more.
> As a resident of a wealthy West-Coast New-World city, the effects of pathological inequality are in my face every day: Bentleys gleaming on the road, ragged people huddled in the rain cadging cash outside the drugstores, thousands homeless.
I also live in a wealthy West-Coast New-World city, and attributing these phenomena to pathological inequality badly misdiagnoses the problem. Most visibly homeless people in wealthy west coast cities are severely mentally ill in ways that prevent them from living a normal life or even living peacefully with other people without some kind of institutionalization, which local authorities are reluctant to do because there's no nice way to institutionalize people.
In some places, it's possible for people with a moderate amount of dsyfunction to be able to scrape together enough resources in order to rent cheap, low-quality housing; but in wealthy west coast cities there is a massive housing shortage that is downstream of decades of underbuilding, so all types of housing are very expensive. The underbuilding was and is mostly driven by large numbers of middle-class homeowners who primarily care about the negative externalities of construction and density affecting the place where they live and own their own homes.
Neither of these problems has much to do with extremely wealthy people, or wealth inequality in a general sense.
I'm highly unconvinced of the proposition that most homeless are severely mentally ill; the data I've seen doesn't support it. That's some of it, and also addiction. But a lot of them just can't make the rent.
Agree on the underbuilding.
> Most visibly homeless people in wealthy west coast cities are severely mentally ill in ways that prevent them from living a normal life or even living peacefully with other people without some kind of institutionalization
Sources? This just sounds like cope from a wealthy individual who wants to feel better about not helping the problem.
For the vast majority of human civilization, all taxes were based on wealth. Your emperor, pharaoh, czar, or whoever was in charge sent a dude around to take a bit of everybody's stuff. Not how much income they made but how much stuff they actually had. It's only been the last 120-ish years that the idea that wealth and income were totally different things as far as taxation is concerned emerged.
I think almost everybody would be better off if taxes were something like 1% of total assets rather than off the top of your income.
> I think almost everybody would be better off if taxes were something like 1% of total assets rather than off the top of your income
No thanks. Any discussion about tax reform has to start with government spending otherwise it's not serious. Nobody wants to gove away a slice of their net worth to pay for bullshit wars and ballrooms.
I think that could generally work domestically, as in, "I don't have anything to give you, I gave/lost it all to Bob...go get it from him". But it would need to be modified with a tax on any wealth leaving the country/jurisdiction, so I can't just make $1B and then send it all to my aunt in $COUNTRY / $STATE / $CITY with low/no wealth taxes and then claim that I don't have any wealth (unless there were sensible reciprocity agreements for tax revenue reapportionment).
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But I'm not sure if your historical claims are accurate. I believe a lot of taxes were a fraction of the expected yield of land, which is more complicated than just "taxing wealth vs. income". Yes, the taxes would go up if you owned more land, which sounds like a tax on wealth. But the imputed tax base would be based on historical yields (income) because the quality of the soil would vary (which also could be construed as a tax on wealth because higher quality soil meant land might be worth more per acre). It was also based on the weather during that growing season, if yields were down in that area then taxes would be lower that year, which sounds more like an income tax than a wealth tax.
You also said "its only been about 120 years since wealth and income were different":
The Christian tithe that became de jury under Charlemagne in 779 A.D. was a strict 10% tax on land yield each year (~income tax) but other empires and lords used fixed quotas (~wealth tax), and records exist that these could have brutal effects during years where weather resulted in lower yields.
There was the 600-year long sales tax on salt in France, which definitely wasn't a wealth tax: https://en.wikipedia.org/wiki/Gabelle
In 1899 the UK instituted a 10% levy on annual incomes over £200, with a graduated rate for incomes between £60 and £200. Income taxes had a hiatus from 1816-1842 but has been permanent since the "Income Tax Act of 1842".
The Mit'a (Inca Empire, Pre-1532) taxed individuals "time". Which I think is more of an income tax than a wealth tax? Adult men had to spend a certain number of days each year working on state projects - like building roads, farming state lands, or fighting in the army. They didn't have currency. Their economy was based on centralized planning, labor taxation (mit'a), and state redistribution of goods.
The Saladin Tithe taxed revenues at 10% in 1188.
For the vast majority of human history, only the ultra wealthy had any money. And then, just as now, taxing only those people would not yield sufficient resources to fund the state.
The problem is, and always will be, what happens to me is I am out of work. No one wants to force people to liquidate assets they might need to work, live, etc in order to pay an asset tax.
Then you get to the dividing line of, but what about the ultra wealthy? Well, sure, but then you write an insanely obtuse tax code to try and capture that wealth while leaving everyone else alone and the targets are highly motivated to find loopholes.
Progressives intuitively understand that it’s not worth the hassle to try and means test entitlements yet seem to miss the fact that trying to manage a confiscatory bureaucracy would have the same issues.
>trying to manage a confiscatory bureaucracy would have the same issues
It would be a cat and mouse game but that doesn't mean we shouldn't try. Like how funding the IRS appropriately increases government revenue.
Yes. And so we have the IRS whose enforcement measures fall disproportionately upon the disadvantaged and which is the only law enforcement agency permitted to open proceedings against citizens without evidence of wrong doing. I would hold this up as the archetypal bad example.
Increased taxation would be defensible if it was paired with spending reform. Increasing the tax to just inflate a bureaucracy helps nobody. Increasing the tax and then directly paying people, with no PMC in the middle, seems win-win-win.
I don't think just paying people will make any difference at all. Most of the chronically poor in US at least have underlying problems such as addiction, schizophrenia or other affective disorders. Most chronically homeless people have turned down multiple state subsidized living options or have been booted from them for anti-social behavior. Studies routinely show that 30-40% of food stamps are sold for pennies on the dollar to pay for drugs or other unnecessary things.
The other major issue with "free money" is that it is purely inflationary, unlike wages which offset most of their price pressure by providing a commensurate amount of goods/services. When you hand everyone a million dollars the price of everything just goes up, both because there's a flood of money and because there's even less incentive to produce something to buy with it.
I think there's any compassionate argument to be made for helping the indigent, but easy ideas like "taking money from job creators and value producers to pay for needles and degeneracy" are never going to work at all.
It's a bit of a trope to say that billionaires are hoarding wealth via financial shenanigans when all of their wealth is tied up in job and value creation.
The us govt wastes by some estimates 30% of its budget. Trillions annually. Have to start with the waste and fraud. Empty daycares are not a good use of hard-earned tax dollars and have a massively pernicious effect on the society. They're not taking care of kids or paying teachers. Just pure inflationary greed.
I'd like to see a few links to support your assertions in the first paragraph because, with respect, I have not seen evidence which supports them.
On the other hand, multiple jurisdictions have run trials of UBI (universal basic income) and unless I misread the reportage, the results have been good.
> The other major issue with "free money" is that it is purely inflationary,
Free money as in quantitative easing that overwhelmingly benefited the wealthy?
>It's a bit of a trope to say that billionaires are hoarding wealth via financial shenanigans when all of their wealth is tied up in job and value creation.
Value for whom?
Why do people stan for billionaires? I don't get it - what motivates you to say this stuff?
Most of what you said is greatly exaggerated or simply not true. It's like you cherry picked Fox News talking points.
Because they've been propagandized and don't have the time or inclination to think differently.
Ideally you'd spend the taxes on things that help people, but I would argue that even simply destroying the taxed wealth would be an improvement over what we have now, if only in that it would counter wealth/power disparity and enable democracy to work better. Allowing a subset of the population to accumulate power divorces their interests from the majority and represents the biggest threat to modern society.
It would be a huge waste though. We should probably spend it on food, education, and healthcare instead.
> destroying the taxed wealth
Wealth is farms, factories, skills, etc. How would destroying all that improve anyone's life?
Wealth isn't money. It exists independent of any currency you can use to give it notional value.
The government decides who is owed what material goods. This is known as property rights. The destruction in this case would be equivalent to transferring the ownership of some factories to the government, exchanging those factories for something flammable on the open market and then setting fire to said flammable things. It's obviously wasteful, but definitely possible, and it won't directly and measurably impact anyone's quality of life. Investor confidence in your country will nosedive, though.
Wealth is also money actually -- people don't contribute farms to politicians campaigns
> Increasing the tax to just inflate a bureaucracy helps nobody
Bureaucracy = jobs, at least. I'd rather that than having it concentrated at the top.
Reversing Citizens United, publicly funding elections, installing a functional regulatory regime and equitable taxation would go a long way.
Perhaps we could also engage in less ill considered military adventurism as well? Causing a domestic affordability crisis as a distraction and a salve for one's ego seems like a bad idea.
Regarding the IMF report, is it actually harder to hide wealth than income, or is it that there are so few global taxes on wealth that nobody's currently bothering to hide it? It seems like income, being a continuous series of transactions, would be the more difficult of the two.
Fun fact: when there was meaningful data on Ukraine, it was number 1 in the world by wealth inequality and at the same time had the best score at income equality.
Likelt has to do with not having any property or wealth taxes, but having modest incone taxes that were rigorosly collected
I bet that both are fairly easy to hide, but some forms aren't. It's hard to hide when money arrives in your bank account and it's hard to hide that you own 51% of Tesla shares. You can do either one of those through a proxy however, which makes it harder to track down, not impossible (why does 51% of Tesla shareholding always agree with this guy? Why's he shilling Offshore Panama Corp LLC products so hard?)
I think it varies - each are easier/harder to hide in different ways at different scales. It's the "convicting Al Capone for tax evasion" thing. They didn't need to prove where his income came from, they could just show that his wealth was clearly higher than his declared income could have possibly yielded.
Revenue transactions and taxable income are two very different topics.
Your accountant can clarify the difference.
A fairer way would be requiring all excess profits be invested in hard assets like factories, infrastructure etc. capital should be forced into competition and create excess capacity.
Y'all can say violence isn't the answer all you like, but not addressing this will cause violence. Mass, misguided, idiotic violence of the like few of us can imagine.
Either we make significant change whilst we still have some capacity to reason, or we consign ourselves to the fate of animals, following our impulse gradients to the places they invariably lead.
The elephant in the room is why governments need more money: old age benefits like social security. I fear that taxing wealth will just be a tax on future investment while funnelling that wealth to the elderly. Already, folks are pushing to make the key asset owned by the old - housing - free from property taxes (if you're over 60, naturally)[1] which will only push housing prices up and drive more budget deficits that needs fresh tax revenue.
I don't expect Social Security (or my country's equivalent) to exist in anything like its current form when I'm old enough to retire. This is the last hurrah and it's shocking how we're pulling out all the stops to make it happen.
[1] https://www.sos.ca.gov/administration/news-releases-and-advi...
Well, healthcare is an increasing piece of government spending all over the world, and the population is aging, so politics and policy aside, that number is going to go up.
Even if the government took the money and burnt it that would be a net good for society since it would lower inequality and thereby decrease power imbalances.
Wow this is nuts.
The value of currency like other things is governed by supply, so destroying some does not damage anything real in the world, just increase the purchasing power of the other dollars in circulation.
You're describing deflation which leads to job losses. If you do nothing else, the policy you're advocating for would lead to a recession, if not a depression.
The cure to that, unfortunately is more corruption and here America is leading proudly
I'm very surprised that Tim Bray isn't part of the richest 0.1%.
We are playing with two sets of dice, I realize mine are weighted and rolling higher than yours. Do I A- offer to switch dice B- not say anything C- offer to share D- decide not to play?
He absolutely is.
In Europe governments make up such a big part of GDP now in some cases nearly half of it that it becomes silly to talk about the evil capitalist. We should be talking about the graft and poor spending of that money.
Well the article wasn’t speaking about Europe but Canada and America.
And if you read the article you will see his mention of the wealthy that are advocating for higher taxes/better wealth distribution and explicitly says that not all wealthy are The Enemy.
Do you really understand class war? Your suggestion is having the state legislate this away as if the state isn't fully compromised by the capitalist class?
This is the main lesson of the 20th century that liberals refuse to accept; that the state is controlled by capitalist class interests. Capitalist democracy is a curated racket.
And even if we were to force legislation exactly as described above it can't and hasn't lasted long due to the incentives ($billions) to undo it. They will go as far as to kill people for this, and they have.
Legislation does NOT fundamentally change existing power relations. They have this shit in their pockets and you're just saying that we should have them take it out of their pockets.
The western allergy towards Marxism is one of the most detrimental cultural positions the working class has EVER faced.
History shows that the "fundamental change to power relations" is just a shift from moneyed interests to political/bureaucratic interests. Which is worse because while moneyed interests have power money can buy, political/bureaucratic interests have the power of state coercion.
"They will go as far as to kill people for this" is rich coming from someone preaching Marxism, for which millions have been murdered.
This is a ridiculous oversimplification of complex historical processes. The biggest change to power relations by far were the bourgeois revolutions, which ostensibly shifted "political/bureaucratic" interests to "moneyed interests," which is quite literally the opposite of what you're saying. At any rate, the dichotomy is completely misleading since "moneyed" interests and "political/bureaucratic" interests are not at all mutually exclusive; in reality, they are virtually synonymous within the capitalist system. Also the notion that "moneyed" interests do not possess the power of state coercion must be some kind of perverse joke. Do you not even have a cursory knowledge of history? There are so many instances of money equating to state coercion that it's mind boggling anyone would say this with a straight face. Do you not know what a pinkerton is? Are you not paying attention to what the current president is doing both domestically and overseas? The idea that any advocate of capitalism would get on their high horse and moralize about Marxism is pathetic.
How is the government worse than the corporation or billionaire for coercion?
Libertarians always try to convince us that the corporate boot tastes so much better than the governmental one, but they both taste like leather to me and I at least have a say, however small, on the government.
Not in any communist society I've ever heard of.
How do Indians feel about rule under the British East India Company from the 17th-19th centuries?
Ah you’re right, in a discussion about increasing taxation on the wealthy the only options are to do nothing or switch to authoritarian communism.
Also I assume you only have a pop history knowledge of communism if you haven’t heard of the Kerala state in India.
In the west, the prevalent idea is that socialism/communism lost and that there is nothing beyond capitalism. This is it, we will forever live in a social-democracy state. I wonder who promotes this idea.
And it seems like the winners capitalism brought about don't actually care all that much about both "social" and "democratic" aspects of "social democracy", if they stand in the way of ever increasing profits.
> In the west, the prevalent idea is that socialism/communism lost and that there is nothing beyond capitalism.
It didn't just "lose", it killed millions of its own people in the process. Having been born in a communist state, I'd rather clean toilets in American than do anything else in the USSR.
Edit: It's basically impossible to communicate the day-to-day misery and deprivation of late stage Communism without sounding like a crazy person. My parents were both university-educated professionals but we lived in a tiny, one-bedroom apartment with occasional hot running water and only newspaper for wiping after the bathroom. This was considered a rather affluent existence.
To find something similar in today's America you'd have to go to the worst, most impoverished parts of town and even then...
In the most impoverished part of my town (just kidding, in every part of my town) people live in the culverts that fill up with water when it rains. I am not sure what they do when it rains.
What about all the places where that didn't happen? E.g. the Nordic countries where social democracy has been extremely successful.
But why is it successful? Where did their money come from? How sustainable is it? The core issues from capitalism still exist there, but they have more money with a smaller population.
I think it helps to draw some distinctions here. Nordic countries have strong social welfare systems, but private property and free enterprise are still a thing. This is not at all the same as communism where everything is ultimately state owned and operated.
China is an interesting example too because it's basically capitalist with strong government oversight. So you can go hog wild on exploiting labor and amassing wealth as long as you don't oppose the overall goals of the government. We'll see how long they can keep it running - the problem with most authoritarian systems is that they're only as good as their current leadership, and when that changes things tend to fall apart.
I think basically capitalist oversimplifies a bit, both because private business holds no monopoly on exploitation of labor in any society, and because many of their large businesses are wholly owned by the state with the CEO appointed by the party. Here is an interesting interview on the subject with a relevant timestamp. https://youtu.be/e297mEZ479E?si=ASV_u9ZoN36wI4M5
The nuance that capitalist businesses do not hold an exclusive interest now or historical pioneering of labor exploitation is valuable to keep in mind because no matter how far the project of labor power spreads, all we workers must keep in mind that we have a primary and vested in empowering the most diminished of our society.
Ok, but you're not exactly a research sociologist, are you? It's not like you've made a study of poverty in America—let alone poverty on the imperial periphery, like El Salvador, Guatemala, or Honduras where we've been undermining democracy and labor rights in order to keep outsourced wages low. Now there are the places you can see real poverty that makes your Soviet austerity seem downright cosy.
So it's just not fair, your comparisons. You're not looking at the whole picture.
We are currently killing millions of our own people. Communism is not stuck in time with the USSR.
> We are currently killing millions of our own people.
What do you mean?
Perhaps you haven't been paying attention to the skyrocketing prices of fuel, food, and healthcare... Or did you just think all those people just above the poverty line disappear when the livable income floor gets hydraulically jacked up?
I'm aware. What I don't see are the millions of dead bodies that hootz says are currently being produced.