Re:Piketty's Three Big Mistakes
by inscrutablemike on Friday March 27, 2015 @03:07PM
(#9278394)
Piketty's data doesn't prove any such thing. Even the poorest people in the US can now have an iPhone, a piece of technology that was unavailable in any form to anyone just ten years ago.
The rising tide does lift all boats. The data only shows that return on capital will always outstrip wages as a way to accumulate wealth.
Monopoly capitalism is just as good at suppressing new business as government bureaucracy is. Markets with a strong de facto monopoly - like web search, commercial operating systems, telecoms infrastructure, and so on - are completely closed to newcomers who can't access billions in capital.
You can be sure there are some very strong business opportunities in those areas, but because capital is so concentrated they will never make it to market while the de facto monopolies remain.
>If you let the average person become 1.10x better off, and you do so by letting some people become 10x better off, are you ahead or behind?
Also known as the "a rising tide lifts all boats" argument." Sometimes dressed up as "trickle down."
Unfortunately Piketty's data proves that the world doesn't work like this, so I'm not sure why you think the question is relevant or interesting.