Post ASsd02xugPa2fbkSx6 by andreasio@mastodon.social
 (DIR) More posts by andreasio@mastodon.social
 (DIR) Post #AR4v4agRdm5VOmxnv6 by rysiek@mstdn.social
       2022-12-28T21:37:56Z
       
       2 likes, 2 repeats
       
       This is a fantastic explanation why the rich get richer, and the poor get poorer:https://pudding.cool/2022/12/yard-sale/> Even with redistribution, the wealthiest person in the game is exponentially richer than the poorest. And this emerged out of complete luck. But imagine what would happen if we played this game with real people: Some of the wealthy players would inevitably argue that they deserve to be rich because they're better at guessing the result of a coin flip.
       
 (DIR) Post #AR4wDA1IFFJTGNMjJo by amerika@noagendasocial.com
       2022-12-28T22:00:36Z
       
       0 likes, 0 repeats
       
       @rysiek Better make sure only the super-competent get rich then.
       
 (DIR) Post #AR52i7MilNuljUX6jA by publius@mastodon.sdf.org
       2022-12-28T23:13:26Z
       
       0 likes, 0 repeats
       
       @rysiek When you have a little extra income (bound to happen just by statistical fluctuation) you can use it to buy income-producing property such as shares or real estate.That gives you a little extra increment of income, which you can use to buy more property. In the process, you force the price of that sort of property up, making buying it more difficult for others. The owner/non-owner divide widens.There's nothing in this argument that goes outside the bounds of classical economics.
       
 (DIR) Post #AR54k3uilcULW0UVkG by rysiek@mstdn.social
       2022-12-28T23:15:44Z
       
       0 likes, 0 repeats
       
       @publius this cuts deeper. It shows that *even if all things are equal* completely random processes will create gigantic wealth inequality.Yes, there are other additional processes that can create that inequality. But the fact that on such a base level such an effect seems to exist is illuminating.At least for me.
       
 (DIR) Post #ASqhrdl6cyIfdCeI7c by pfm@edolas.world
       2023-02-19T20:57:57.378033Z
       
       0 likes, 0 repeats
       
       @rysiek Thanks for posting! Reminds me another article on the topic I've read a while ago:"Is Inequality Inevitable? Wealth naturally trickles up in free-market economies, model suggests"https://www.scientificamerican.com/article/is-inequality-inevitable/
       
 (DIR) Post #ASsd02xugPa2fbkSx6 by andreasio@mastodon.social
       2023-02-20T11:41:45Z
       
       1 likes, 1 repeats
       
       @rysiek i did a similar illustration when i was teaching statistics 101 to economy students. Showed them four graphs of stock returns. Had them discuss. Then showed them it was just random returns, with propability = 0.5 and then random returns inside e.g. plus minus 10 %.I might not have created a single socialist, but they all learned something about luck. And maybe something about stochastic in leadership :)