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8 votes
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Would a fair distribution of wealth from the super rich increase the purchasing power/life quality of the average person?

tl;dr: In the hypothetical you set in the body of your question redistribution cannot help the poor. However, this is not because redistribution could not significantly raise the welfare of the poor ...
1muflon1's user avatar
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7 votes

How does John Stuart Mill distinguish between "wealth" and "riches"?

I can only speculate on what Mill meant, but it seems to me that This is mostly a figure of speech. People sometimes say things like "I have no money, but I am wealthy in other ways", ...
Giskard's user avatar
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7 votes
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Is it viable to put a cap on personal wealth in the U.S.?

Wealth cap that would confiscate and redistribute wealth above certain limit is in an essence just different term for wealth tax (as opposed to situations where there would be just a ban on having ...
1muflon1's user avatar
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6 votes
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How is wealth created?

First we need to discuss what wealth is. Is it just the amassment of valubles? In the 16th-18th century, rulers thought so. This notion is called mercantilism. This idea was rejected by Adam Smith in ...
Klas Lindbäck's user avatar
6 votes
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Do inheritances break Piketty's r>g model's conclusions?

It actually does not change conclusions from his model. Piketty's model is not about income inequality per se, it is about inequality between capital's and labor's share of income. Piketty's model ...
1muflon1's user avatar
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5 votes

Bananas and oranges in communist countries

there actually were some bananas in communist countries. There was just shortage of bananas and other products as well such as toilet paper etc. As this article from Financial Times shows, there ...
1muflon1's user avatar
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4 votes

Is wealth inequality actually a problem

Scrooge McDuck likes swimming in money, which is why he accumulates a lot of it without any intention of ever spending it. If you think bringing in Scrooge McDuck is far-fetched and irrelevant, you ...
Michael Greinecker's user avatar
4 votes
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Did the idea of “making money” originate in the United States?

No, the idea of wealth as something to be created did not originate in the United States. It was part of the mercantilist approach to national economic policy that was widely adopted in Europe in the ...
Adam Bailey's user avatar
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4 votes

How to tax the robots?

Robot taxation is a bit like corporate income taxation. Like corporations, robots don't pay taxes, people pay taxes. In the words of Herb Stein: I remember that in addressing the issue in the 1980s, ...
BKay's user avatar
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4 votes

Statistical distribution of wages and wealth

Globally, there is Lakner and Milanovik (2015)'s elephant graph: Hellebrandt and Mauro (2015) Thus, the two previous distributions look like bimodal log-normal distributions. or CDFs, as in ...
keepAlive's user avatar
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4 votes
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Pareto distribution and Lorenz curve

With my very limited knowledge of development economics: $\left(\frac{x_m}{x}\right)^\alpha$ represents the proportion of the population that has an income larger or equal to $x$ where $x\geq x_m>...
lunar_props's user avatar
4 votes
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Income/Wealth Inequality; Why does it matter?

There could be some complicated models where high inequality could have effect on efficiency - the research is inconclusive (or to be more precise almost non existent) on the matter. However, in ...
1muflon1's user avatar
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4 votes
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How did Pareto came up with Pareto Distribution of wealth law?

The Pareto distribution was derived based on the observation of Vilfredo Pareto that in Italy $80\%$ share of land belonged to $20\%$ of the country’s population, and he showed this held for many ...
1muflon1's user avatar
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3 votes

Statistical distribution of wages and wealth

Both distributions are often modelled log-normal, with a substantial number of zeros. A pareto distribution is also sometimes used (Piketty & Saez (2012), p.32) for modelling the distribution of ...
E. Sommer's user avatar
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3 votes

Is worsening wealth inequality intrinsic to Capitalism?

First, let us make a distinction between the functional distribution of income, related to how payment goes to factors of production, i.e, labour and capital, via wages and rents, and the personal ...
luchonacho's user avatar
  • 8,591
3 votes

Is worsening wealth inequality intrinsic to Capitalism?

While the owners of a successful business will generally experience an exponential growth compared to their employees, there are some factors to consider: I find it unrealistic for any business to ...
E404's user avatar
  • 151
3 votes

How is money created?

Re: "You could say this is 'creating' money" - no you couldn't. This would be conflating money and wealth. Wealth can be created without new money being created - indeed wealth was created before ...
Mick's user avatar
  • 1,046
3 votes

Social mobility and income inequality

The argument is correct Social Mobility and Income Inequality are simply two distinct phenomenons. Mobility is arguably the more complex one, and there are many different ways to define it. As an ...
E. Sommer's user avatar
  • 1,327
3 votes

How does the pie get larger?

The short answer is that money is not the same wealth. You yourself probably have less money than the value of all the stuff you own. When the economy grows the total amount of wealth grows. (This is ...
Giskard's user avatar
  • 29.2k
3 votes

Is a 6% wealth tax a sustainable source of income?

I think the big unknown here is how much they'll start to dissimulate and/or offshore their (new) wealth. According to one paper: A recent study by Brülhart et al. (2017) gives support to the ...
against very long user names's user avatar
3 votes

Bananas and oranges in communist countries

This problem is endemic in Communist countries. I grew up in Cuba in the 1970s and we had the same problems with temperate fruits. Apples and pears, and even strawberries which should grow in Cuba ...
Carlos A. Ibarra's user avatar
3 votes
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How much does generational wealth contributes to wealth inequality?

Not much. A groundbreaking 20-year study conducted by wealth consultancy, The Williams Group, involved over 3,200 families and found that seven in 10 families tend to lose their fortune by the second ...
Alex's user avatar
  • 354
3 votes

What data / evidence is there to support the assertion that wealth taxes are ineffective because they're difficult to implement?

What are some real-life examples of wealth-taxes being implemented and how did they go? There many examples of wealth taxes tried in various European countries. However, most of them were abolished ...
1muflon1's user avatar
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2 votes
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Estimating national intangible wealth

The reference is World Bank (2006). You can see the detail of the methodology in Appendix 1, and their estimates of intangible wealth in Appendix 2. There are other methodologies to measure ...
luchonacho's user avatar
  • 8,591
2 votes

Effects of finding infinite gold reserve

The gold will be free. (price 0 not anymore rare). banks and others institutions will found others stuff for having reserve. ( platinum, silver, grains, maybe one day water ).
Patrick Moumiet's user avatar
2 votes

Is wealth inequality actually a problem

Too much inequality is probably still bad even in a simple model. Too much equality is probably not good either. A balance has to be found. Let's say every enterprise consisting of production of ...
user193873's user avatar
2 votes
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How much the wealth inequality increased in the USA in the last decades?

This statistic shows the Gini coefficient, an index for measuring income distribution, for U.S. households from 1990 to 2016. A Gini coefficient of zero expresses perfect equality, where all would ...
Giskard's user avatar
  • 29.2k
2 votes

How is money created?

The title of this question currently is "How is Money Created?" This question does not appear to reflect the intent of the question, I think it should be "How are profits created?" "Money" has a ...
Brian Romanchuk's user avatar

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