"trickle down" economics may actually be a misinterpretation of the actual effect if an economic system is "leaking" and trickling down, it is actually a broken system. like a hydraulic system, the purpose is to maintain pressurehttps://twitter.com/a_yawning_cat/status/1396119153723904003 …
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so the way that big wealth creates wealth for the little guy isn't that so much abundance is created that it bursts from the ground like a geyser providing free excess for everyone but that as it grows it forcibly integrate everyone into the ecosystem for better or for worse
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e.g. there are many "independent" companies that would likely go bankrupt if they didn't have apple as a customer as soon as apple moves on, the company dies. they NEED apple to stay alive even though with every transaction apple grows even bigger deepening the dependency
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this is imperfect but historically is much better than a centralized state where every "company" is just another arm of the central state these sprawling tree hierarchies often DO create trickle down flows
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the end result of this trickle down of money is that people try to EAT money. but no matter how much money you print money cannot be eaten. someone has to DO the stuff. without an incentive for closing the loop no one does anything and the system dies
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when money is produced out of the thin air, it's like constantly adding water to the juice until it's so diluted that it's just water centralized states can only maintain real juice % by conquering and juicing the outside world once the conquering stops, dilution starts
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so interestingly enough, when corporations are taxed, employee salary and benefits actually decrease since it forces more "leanness" governments seem to be "bribed" by companies for lower taxes but actually they r trying to help people keep their jobs/lifestyle
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the government has to balance between allowing the companies to do what they want with the money (which includes keeping employees on payroll) vs taxing the companies and doing government things like "infrastructure"
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in countries like the u.s. there is actually a cultural aversion to these centralized projects as "inefficient" and a "waste of money" (especially on the conservative side) this is in contrast to a country like china where centralization is associated with efficiency
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so from the individual's perspective there's really nothing that can be done. government taxation into infra projects will build roads and schools but it won't help the actual individual NOW. maybe free internet for all? doesn't seem the bottleneck...
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the only thing they CAN do is to stay at their current job and start living below their means to amass some excess capital and then hopefully deploy it in a way that can change their life. like doge. there's also youtube/skillshare/etc.. learning but that's global competition
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once this is realized then the conservative monetary policies can start to be understood the increased taxes reveal themselves not as a way of bettering self but start to feel petty and spiteful as a way of equalizing everyone
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this anger is not without merit. prior to the days of globalized knowledge companies had to train the local population to be useful the rich who made their wealth during those times would likely fail just as hard now given global knowledge worker competition
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so from a cat's perspective, this argument around taxes and inequality is just a civil war. it doesn't solve the actual problem of developed country workers being uncompetitive with developing country workers who are *much* more motivated
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historically immigration provided a buffer for this effect. the smartest best doers wanted a safe place without corruption to live and have a family and the U.S. was THE place to be however now many countries have caught up and america seems to have a mass shooting every week
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this is in sharp contrast to asian countries like japan/china/taiwan/singapore/etc... where you can walk around in the middle of the night and feel pretty safe
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y would anyone go to the U.S. if they feel like they might be beat up for not knowing what's politically correct, or left to drown in medical bills, or be shot by police, or be taxed to support the neets, or have global taxation as a benefit of citizenship to look to?
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this is what "infrastructure" actually means... it means to spend money and energy in a way so that people actually want to LIVE here and be a part of things. and no one wants to live in a land of constant crusades by the morally lazy
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End of conversation
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