try-perforate

I agree. I think one thing I’ve realized is that a few thousand years isn’t really that long of a timespan. And people writing around the time of Rome and even earlier weren’t stupid like I’ve tended to think of them. I think that’s why things like philosophy have persisted through time. It’s not like humans were unable to reason about their existence in the time of Rome. If I read and think about those folks and their experience of the human condition, I am able to relate to someone who lived many generations before me, which I think is pretty incredible to be honest.

But isn't this the cause of inequality? If you can't pay commensurate with productivity, a larger share of capital flows to capital owners and you stretch out the exponential curve. There are humans on the other side of the equation and there are other costs besides labor involved with operations.

There's a reason why common good capitalism is an increasingly attractive model for a lot of folks. A society cannot maintain the maximize returns to capital model indefinitely. I think many people are realizing that Friedman's economics either cannot be sustained or lead to a place where many would prefer not to go. People, and therefore the invisible hand, are inherently flawed.

Read an idea in American Affairs in support of taxing buybacks. The logic goes that if all companies have a fiduciary duty to shareholders because the market is the most efficient capital allocator, AND all companies are giving their cash back to shareholders, THEN it must be true that the market can not figure out how to efficiently allocate this $1T of capital. Thus, the government should have “next dibs” for items on the agenda that it knows need capital, namely infrastructure and healthcare.

Thought that was an interesting take.

Edit: here is the link but it may be behind a paywall. https://americanaffairsjournal.org/2018/12/share-buybacks-an...