Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Isn't it also important to note that wealth acquisition activities and wealth creation activities are not the same thing?


This is excellent point.

If it is too easy to gather wealth so you can gather wealth without actually having to create any value (through corruption, extortion, monopoly, theft, deception, enslavement, etc.) then you will have the bad kind of inequality where most people are not compelled to put hard work to create value for others in order to create wealth for themselves.

Again, GINI does not differentiate between the good and the bad kind of inequality, so two countries with same GDP and same GINI might be very different. One may be on the rise, with a number of enterpreneurs creating huge progress and value and the other might have couple of oligarchs who were able to amass their wealth with corruption.


> (through corruption, extortion, monopoly, theft, deception, enslavement, etc.)

rent-seeking should be there too


In the financialized world we live in rent seeking should be the top of the list.


It's difficult to acquire wealth without creating it. The most obvious way is inheritance / gifts, or else crime (fraud, theft). Most wealth is created though, not inherited. E.g., most notable American billionaires (Gates, Buffet, Bezos, ...) of today created most of their wealth. Down the ranks from billionaires we might find more inheritance / less wealth creation, but I suspect that in general you'll find that in mature, open, liberal market economies, wealth is mostly created, not "acquired".

EDIT: Ah yes, rent-seeking is a problem. That was identified by Adam Smith, and it's a problem that's as yet unsolved.


I think that's terribly, terribly naïve. Most wealth was skimmed from other's work through manipulation of stock, bonuses, grants and other executive-suite routines. There's no longer any amount of skimming that's considered egregious. Its ramping up and up without limit.


>Most wealth was skimmed from other's work

Or you know, just by taking the surplus value of someones labor.


Again, naïve. The executive suite takes huge bonuses, while there's been no raise for the rank-and-file for a decade. Bonuses even when there's little profit. All rationality has left the equation.

Lets stop living in the 1960's. Don't take our impression of American business from history. Today its very, very different and very, very predatory.


There's also a number of activities that neither create, destroy or exchange wealth. This is why Mises sought to expand the study to praxeology and not simply economics.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: