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> Let's put this math in a mirror and do the leftie version of the exponentials

The plot twist is that the 'rightie' and the 'leftie' are both entirely correct. Which is why most developed economies try to remove sources of wasteful, unearned rent and also include significant amounts of redistribution/social insurance rather than relying on pure market outcomes. This doesn't erase the compounding dynamics altogether, but it hopefully ensures that folks at the lowest end of the distribution can keep a tolerable standard of living that doesn't have them 'paying' too much.

by smallmancontrov1 hours ago|

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Yep! The equation even has a "left" and "right" term that correspond to political left and right:

    gains = investment * rate_of_return

Left term: rich people get paid for being rich in proportion to how rich they are. This is an exponential and it creates, reinforces, and perpetuates a class hierarchy where poor people must pay to exist and rich people get paid to exist. Capitalism is a Softmax function.

Right term: capital allocation decisions are made with skin in the game. Every chunk of the economy has a responsible owner who is rewarded/punished and promoted/demoted for good/bad decisions. Capitalism is a Q-learning algorithm.

by JKCalhoun6 hours ago|

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We also want a compounding (progressive) tax rate to address compounding wealth (and perhaps we need a wealth tax?).

by smallmancontrov5 hours ago|

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Yes, although I tend to think this produces better incentives and is easier to administer if we formulate it as progressive corporate taxation. This structurally discourages mega conglomeration and encourages spin-offs to enhance competition. Also, taxing at the source of profits obviates the need to track down the destinations of profit, who are far more numerous and easy to hide.

The non-explosive way to do this is simply to set the heel above the megacorps today and let inflation push them into it. They will be able to avoid the heel by splitting at their leisure, slowly remediating the consolidation we have seen and restoring competition.

by vrganj6 hours ago|

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If you start with a mere two million and get really lucky, you, too, can be a billionaire!

Now, if that isn't inspiring, I don't know what is! Some of my rich buddies got to be super rich following my advice!

I really don't know why the average person hates the rich. Those poors are so out of touch!

by haaz5 hours ago|

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$2m is the standard seed round nowadays which is what he was as referencing. Anybody who has a good idea and can convince investors can raise this, hence how the new AI founders became billionaires without having $2m of their own.