Coming Down with Joshuas

The end of a great day in Joshua Tree National Park

Richard Marley on Impermanence

Little Boat
Source: Wikimedia

On a Zen Teaching:

Life is like a little boat that you sail out into the big ocean and then it sinks.  That’s it.

On the Importance of the Awareness of Death:

I wish I had known I was dying 50 years ago… because I might have paid more attention to some of the things that I brushed aside.

We really should view an awareness of death as a gift of great wisdom.  It is if we don’t deny it.

Desert Trippin

An overexposed brain… high noon in Joshua Tree National Park.

On the Supposed Inevitable Concentration of Wealth

I’ve long struggled with apparent conflicts in my belief systems. Intuitively, free-markets make more sense than central control. Intuitively, free-markets have led to exploitation of the poor.

Why is it that many believe a free-market system inevitably leads to a concentration of wealth at the expense of the poor? It seems to be happening globally, but is it real? And if so, why is it inevitable?

Let’s start with looking at the idea of total wealth and redistribution of wealth.  My intuition is that if the poor were to “storm the castle,” so to speak, and pillage the wealth of the top 1% and redistribute it to everyone, they might gain a 10% increase in their standard of living.  In other words, the hording of wealth, while to a degree unfair, is not really the cause of global suffering.  Is anyone out there aware of any wealth balancing calculations?  Does this idea hold up to scrutiny?

Furthermore, we have to consider the concepts of money distinct from true goods that will benefit the poor.  The top 1% may be hoarding money, but are they really hoarding food, water, and materials to build shelter?  If all that cash was redistributed, wouldn’t prices just inflate, negating some of the intended effect?  I find it difficult to identify a logic where redistribution solves any problems in a material way.

More importantly, I want to discuss the idea that a concentration of wealth is inevitable.  To me, it seems there are many reasons that concentrated wealth should disperse, not continue to concentrate.  It’s sort of like entropy.  Probability will lead to the wealthy losing their wealth through mistakes.  What can go wrong, will.  People make bad choices.  They spend too much.  They make risky investments.  They squander their fortunes.  Taxes deplete them over time.

I agree that the rich have certain advantages.  Education, connections, access, and so on can all be generalized to say this: the rich have more opportunities.  But opportunities are not enough.  As many business people will tell you, it’s easy to have success, but it’s hard to stay successful over the long run.

What else is it that seems to favor concentration of wealth?

The corporation.  This unnatural construct systematizes the manufacture of profits.  By definition, it cannot reach a steady-state. It must strive for growth.  It has an ambition and a skill that far surpasses that of any human or any natural entity.  It alone is explanation for the concentration of wealth and power that has been occurring.

Great lessons can be learned by reflecting on simple observations of daily life

You can’t have bubble bath AND turn the jets on in the jacuzzi tub.  You have to choose one or the other.  =P