Trade-offs between inequality, productivity, and employment

You can only consume so much, but you can hedge against risk to an unlimited degree, and the ultra-wealthy do, suggests Interfluidity, and this makes a mess of a consumption-based economy when you get too much wealth concentrated in a few actors.  It’s an interesting argument, but it does kind of hinge on a zero-sum game setting — insurance against risk going only to the highest of bidders (lifeboats on a libertarian Titanic).  WWII as a giant re-set button, leading to a temporary age of prosperity.  What’s the next re-set?  Climate change seems like a good candidate…

Leave a Reply