This might be the biggest problem with debt. High debt levels distort prices dramatically by collectivizing interests. Money gets spent the way it does within a marriage for instance -- driven more by the pair psychology and co-dependency pattern rather than any sense of value.
-
-
For the sake of argument, imagine that all wealth is created by selfless academic scientists making new discoveries, with their students going out and building startups based on those discoveries, invested in by VCs, in turn invested in by LPs.
Show this thread -
In this cartoon wealth pipeline, the scientists would be paid tax-free NSF money just to exist, their students would enjoy low tax rates for building startups, the VCs would pay a slightly higher tax rate, and the LPs higher than that. We're talking net income tax rate here.
Show this thread -
Past LPs, the case that you're "participating in wealth creation" becomes very tenuous indeed. You're at best just not getting in its way. If you're not adding *information bits* to *equity dollars*, you're not helping. You may not be hurting, but you're not helping.
Show this thread -
The basic principle is: if you're helping make money smarter, you get lower taxes. If you're keeping it constant smart or making it dumber, you get higher taxes.
Show this thread -
Somebody, not-me, should write a book about all money as equity invested in future ideas/individuality, as a counterpoint to Graeber's model of all money as debt held in a history of obligations/mutuality.
Show this thread -
The cartoon pipeline is a cartoon because it doesn't work as advertised. Distortion and capture every step of the way.https://twitter.com/NickPinkston/status/1267493781697249291 …
Show this thread -
I think the big missing piece that could make debt less toxic is being able to choose much more meaningfully who you get indebted to. Every individual/group being able to designate debt in their own currency tokens would be a step in that direction. Decouple globally a bit.
Show this thread -
You kick the global coupling up a level to a much more fine-grained currency market, with much less exposure on the management or mismanagement of the dollar, but higher exposure to smaller-scale bad behavior.
Show this thread -
If instead of a few hundred national currencies and $ as the denoting default, you had millions or billions of currencies, almost all of it backed by small/local patterns of debt holding, what would happen? Like in crypto markets most tokens would have effectively no liquidity.
Show this thread -
The median currency would have 1-2 market movers. In fact typical case would be “my mom bought all my tokens in exchange for indulgently priced better tokens”
Show this thread -
Heh,
@Archivd is running precisely such a closed, illiquid token currency for his young son out of a cookie jar. That idea but broadened.Show this thread -
Hehe, my theory of polyglot microservices money might run into demand problems https://twitter.com/vgr/status/1267499651638280203?s=21 …https://twitter.com/vgr/status/1267499651638280203 …
Show this thread
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.