Posts Tagged ‘Bill Gates’

A Wealth Tax

March 15, 2020

This post is motivated by an article by Michael Birnbaum titled, “Warren, Sanders want a wealth tax. Swiss suggest their model for America” in the 4 March 2020 issue of the Washington Post. Economists advising Sanders and Warren point to Switzerland’s wealth tax as a successful one. And some deep-pocketed Swiss say their wealthy American peers should consider Switzerland’s system.

Peter Kurer, a former chairman of UBS, Switzerland’s largest bank, and now head of the country’s second-largest phone and Internet provider, said, “Rich people can live with a wealth tax. There are many wealthy people in the United States who don’t pay any taxes at all, and this spoils social peace.”

“Hitting the wealthy based on their assets is an old practice here, dating to Switzerland’s origins as a unified confederation in the mid-19th century. In the country’s highly decentralized system, where most tax decisions are put directly to voters, wealth taxes have reaffirmed again and again by citizens, a sign of broad support.”

“Here in Solothurn, a German-speaking state about 50 miles west of Zurich, the wealth tax is so popular that residents opted to increase it by nearly a third in a Feb. 9 referendum, while also trimming corporate rates in a kind of compromise. Each of Switzerland’s 29 states gets to to pick its own tax rates, though all must have a wealth tax.”

Roland Helm, Solothurn’s top finance official, who presided over the tax compromise as a state councilor from the center-right Christian Democratic party said, “For the people, it’s normal that those who have more rich than others have to pay more than others. It’s a part of justice.”

In Europe, only Spain, Norway, Belgium, and Switzerland impose wealth taxes. France scrapped its wealth tax in 2018, after tens of thousand of millionaires were estimated to have left. But Americans are liable for US taxes regardless of where they reside. So the wealthy who left the United States could, along with their offspring, be prohibited from re-entering the US. They would be in permanent exile until they paid their taxes. There are many Russian billionaires affiliated with Russian mobs, who would like to enter the United States, but are prohibited. The US is a highly desirable country in which to reside or visit, so precluding tax owing citizens from reentering the country would provide a strong disincentive for owing taxes.

It important to make a distinction between earned wealth and inherited wealth. Jeff Bezos and Bill Gates have amassed fortunes by generating new businesses that benefited the economy. Warren Buffet generated a fortune through wise investing. These fortunes can be justified. It is interesting that Warrant Buffet and Bill and Melinda Gates do not believe in leaving their wealth to their children. They believe that doing so would not be in the general interest of their children. Bill and Melinda Gates work developing a charitable corporation that uses operations research to find those populations and areas of the globe that are most needing of assistance. Warren Buffet is transferring his wealth to their foundation. Inherited wealth can be, and frequently is, pernicious.

At this point, please allow a digression to the royalty and peerage of Great Britain. At one time the King or Queen and the peerage controlled virtually all the wealth in the country. Over time, that has greatly decreased. But what was the justification for royalty and the peerage? It was by thuggish acquisition and warfare. Their aires inherited their wealth and power.

One can make an analogy between British royalty and the peerage to Americans who inherit wealth. This introduces distortions and inequities into the countries. In the United States

In 2010 the Top 1% had 35.4% of the wealth
The top 5% had 63% of the wealth
The top 20% had 88,9% of the wealth
And the bottom 80% had 11.1 % of the wealth

And the situation has become more unequal in 2020.

So why should this be a concern? As the share of the nation’s wealth going to the wealthy rises, the share going to everyone else falls. What else falls? The freedom that wealth can buy, and the power that wealth can buy. Technically, we may still have one person, one vote (but given the menacing Electoral College, not for Presidential elections). But the effect of one person on elections has gone way down.

Thomas Piketty makes a distinction between productive wealth and reinvestment wealth. Productive wealth is the wealth generated by work, by producing and selling things or services, and the kind of wealth Adam Smith talked about.

Reinvestment wealth is generated by receiving returns on investments and then reinvesting the returns over and over. This kind of wealth grows exponentially, like compound interest. The more you have, the more you invest, and the more you invest, the more you have.

Most inherited wealth is reinvestment wealth. Read the healthy memory blog post “The Piketty Insight on the Accelerating Wealth Gap” to understand why this is undesirable.

The most effective way and addressing this glaring inequality is to gradually chip away the inequality with a wealth tax.

Stanford Helped Pioneer Artificial Intelligence

May 21, 2019

The title of this post is identical to the first half of a title by Elizabeth Dworkin in the 19 March 2019 issue of the Washington Post. The second half of the title is “Now it wants humans at the core.” A Stanford University scientist coined the term artificial intelligence (AI) and advancements have continued at the university including the first autonomous vehicle.

Silicon Valley is facing a reckoning over how technology is changing society. Stanford wants to be at the forefront of a different type of innovation, one that puts humans and ethics at the center of the booming field of AI. The university is launching the Stanford Institute for Human-Centered Artificial Intelligence (HAI). It is intended as a think tank that will be an interdisciplinary hub for policymakers, researchers and students who will go on to build the technologies of the future. The goal is to inculcate in the next generation a more worldly and humane set of values than those that have characterized it so far—and guide politicians to make more sophisticated decisions about the challenging social questions wrought by technology.

Fei-Fei-Li, an AI pioneer and former Google vice president who is one of the two directors of the new institute said, I could not have envisaged that the discipline I was so interested in would, a decade and a half later, become one of the driving forces of the changes that humanity will undergo. That realization became a tremendous sense of responsibility.”

The goal is to raise more than $1billion. It’s advisory panel is a who’s who of Silicon Valley titans, that includes former Google executive chairman Eric Schmidt, LinkedIn co-founder Reid Hoffman, former Yahoo chief executive Marissa Mayer and co-founder Jerry Yang, and the prominent investor Jim Breyer. Bill Gates will keynote its inaugural symposium.

The ills and dangers of AI have become apparent. New statistics emerge about the tide of job loss wrought by the technology, from long-haul truckers to farmer workers to dermatologists. Elon Musk called AI “humanity’s existential threat” and compared it to “summoning the demon.”

Serious problems were raised in the series of healthy memory posts based on the book, “Zuck.” The healthy memory posts based on the book “LikeWar” raised additional problems. Both these problems could be addressed with IA. Actually IA is being used to address the issues in “LIkeWar.” Regarding the problems raised in the book “Zuck”, rather than hoping that Facebook will self-police or trying to legislate against Facebook’s problematic practices, AI could police online all these social networks and flag problematic practices.

It is the position of this blog to advocate AI be used to enhance human intelligence. This is especially important in areas where human intelligence is woeful lacking, that is intelligent augmentation (IA). Unfortunately, humans, who are regarded as social animals, have difficulties reconciling conflicting political and religious beliefs. Artificial intelligence could be used here in an intelligence augmented (IA) role. Given polarized beliefs dead ends are reached. IA could suggest different ways of framing problematic issues. Lakoff’s ideas that were promoted in the series of healthy memory blog posts under the rubric “Linguistics and Cognitive Science in the Pursuit of Civil Discourse” could provide the initial point of departure. Learning would take place and these ideas would be refined further to result in disagreeing parties being surprised about their ultimate agreement.

© Douglas Griffith and healthymemory.wordpress.com, 2019. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Douglas Griffith and healthymemory.wordpress.com with appropriate and specific direction to the original content.

Most Admirable Multi-Billionaires

February 12, 2018

Two who come immediately to mind are Bill Gates and Warren Buffet. These two (actually three, Melinda Gates is on Bill’s team) are giving away their fortunes, but they are not passing their fortunes on to their children. They think children inheriting their parents’ fortunes is not only bad for their children, but it is also unfair to other children who are not so fortunate. They reason that they have already given their children enough of a chance to succeed.

Ted Turner has pledged half of his fortune after he passes away and is trying to convince other multi-billionaires to do the same. He is meeting with some success, but others just tell him to pass.

It is difficult to understand why multi-billionaires want to acquire more wealth. There is only so much that they can personally consume and enjoy. Many become philanthropists and find this rewarding. It also benefits their personal health. So it is some consolation knowing that greedy multi-billionaires will likely shorten their lives compared to how long they could have lived had they been philanthropic.

It is clear that the goal of some multi-billionaires is to increase their wealth and personal power. This is certainly true of the Kochs and the Mercers. They are giving to websites, networks, and politicians to increase their wealth and personal power. As mentioned earlier, Fred Koch founded the John Birch Society, which was violently anti-communist. How could his descendants be supporting Putin’s support of Donald Trump? The apparent reason was that the Soviet Union was Communist. Russia, however, has been transformed by a former KGB agent into a kleptocracy. Now a kleptocracy is something they can understand. It is clear that Putin wanted Trump to win and that Russia devoted considerable resources, likely enough to tip the electoral college to Trump.

Originally, Republicans were enraged that the Russians had corrupted our election. They wanted to get to the bottom of this and supported Republican Mueller in his investigation. However, now their tune has changed. They are attacking fellow Republican Mueller, the FBI, and the Justice Department to either stop or discredit Mueller’s investigation. The only way that HM can understand this behavior is to think that Republicans have effectively been bought by the Kochs and Mercers. They might not be smart enough to realize that the end goal is a kleptocracy. HM wonders if they’ll continue to react this way if further investigations into Trump’s finances show that he is heavily in debt to Putin and the Russian Mafia, and that Trump is, in effect, Putin’s bitch.
HM is just wondering here, and this is just a conjecture.

© Douglas Griffith and healthymemory.wordpress.com, 2018. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Douglas Griffith and healthymemory.wordpress.com with appropriate and specific direction to the original content.

Bill Gates’ Robot Tax Alone Won’t Save Jobs: Here’s What Will

March 10, 2017

The title of this post is identical to the title of an article by Sumit Paul-Choudhury in the 4 March  2017 issue of the New Scientist.   Bill Gates argued that we should raise the same amount of money by taxing robots as we would lose in payroll taxes from the humans they supplant.  Then this money could be directed towards more human-dependent jobs, such as caring for the young, old and sick.  EU legislators rejected just such a proposal due to lobbying efforts by the robotics industry.

The article makes the valid assertion that automation is the biggest challenge to employment in the 21st century.  Research has shown that far more jobs are lost to automation than to outsourcing.  Moreover, this will get worse as machines become ever more capable of doing human jobs—not just those involving physical labor, but ones involving thinking also.

The common argument from the robot revolution is that previous upheavals have always created new kinds of jobs to replace the ones that have gone extinct.  But previously when automation hit one sector, employees would decamp to other industries.  However, the sweep of machine learning means that many sectors are automating simultaneously.  So perhaps it’s not about how many jobs ar left after the machines are done taking their pick, but which ones.

The article suggests that the evidence might not be very satisfying.  The rise of the “gig economy”, in which algorithms direct low-skilled human workers.  Although this might be an employer’s dream, it is frequently an insecure, unfulfilling and sometimes exploitative grind for workers.

The article argues that to stop this, it’s employers that need to be convinced, not the people making the technology, but it will be difficult to convince the employers who have huge incentives to replace all-too-human workers with machines that never stop working and never get paid.

Although the article fails to mention this, there is the danger of extremely high unemployment, particularly among the well-educated and formerly  well-off.  There have been several previous healthy memory blog posts by HM in which he discusses the future he was offered in the 1950s.  In elementary school we were told that by today technological advances would vastly increase leisure time.  Bear in mind that in the 50s very few mothers worked.  Moreover, technology has advanced far more than anticipated.  So, why is everyone working so hard?  Where is this promised leisure?

Unfortunately modern economies are predicated on growth.  They must grow which requires people to purchase junk and to keep working.  These economies are running towards disaster.  People need to demand the leisure promised in the 50s.   Paul-Choudry’s article does suggest that a business friendly middle ground might be for governments to subsidize reductions in working hours, an approach that has fended off labour crises before.  HM thinks that Paul-Choudhury has vastly underestimated the dangers of job losses.  HM thinks that this is of a magnitude that will threaten the stability of society.  So the working week will need to be drastically shortened to 20 hours (See the Healthymemory Blog Post “More on Rest”).

There have been previous healthy memory blog posts on having a basic minimum income, which also will need to be passed.

The primary forces arguing for these changes are the risks of societal collapse.

However, people need to have a purpose (ikigai) in their lives.  They need to have eudaemonic not hedonic pursuits.  Eudaemonic pursuits build societies; hedonic pursuits destroy society.

© Douglas Griffith and healthymemory.wordpress.com, 2017. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Douglas Griffith and healthymemory.wordpress.com with appropriate and specific direction to the original content.

A Bridge to Brain Power

April 15, 2015

The title to this post is the title of an article in the March 2015 AARP Bulletin by Jon Saraceno.  Don’t let the source of this article lead you to believe that Bridge is only for retirees.  Bridge is indeed a bridge to to brain power for both the young and the old.  Perhaps the best endorsement for Bridge is that both Warren Buffet and Bill Gates are passionate devotees.

Playing bridge makes demands on all your cognitive resources.  First of all, one needs to learn how to bid and to communicate with one’s partner regarding the bidding.  Once the bid is set, the declarer’s partner, called the dummy. sets down her cards so everyone can see what she had.  Given this information the declarer needs to formulate a strategy for winning the hand.  He knows what cards the opponents have and he tries to make informed guesses as to who has what cards and how the suits are divided.  The defenders, seeing only the cards in dummy, needs to formulate a strategy to defeat the bid.  The first lead from the opponents provides hint of the strategy.  Once the hand starts, everyone except the dummy needs to keep track of what cards have been played and try to estimate who has which unplayed cards.  So bridge places strong demands on both long and short term memory, on the ability to strategize, and to strategize in a dynamic environment.  To do all this one needs a strong ability to focus.  The bottom line here is that Bridge challenges our cognitive resources and helps up build and maintain healthy memories.

There are a variety of learning resources, and one can play automated games so one is not embarrassed by one’s poor play.  The American Contract Bridge League, http://www.abcl.org, has a number of programs developed to make learning how to play Bridge simple.

They have a new Learn to Play Bridge software program, a learn as you play tutorial.

Free personal computer software programs, including Learn to Play Bridge I for beginners.

Learn Bridge in a Day?..a five hour course geared for rookies

All these programs are available at the American Contract Bridge League website, http://www.abcl.org.

Once you have reached the point of not being embarrassed or have developed a thick enough skin to not be embarrassed, then you can enjoy the benefits of social interaction.  Even if you are a poor player you can likely find a group of people at a beginning level.  I was a very poor player, yet some truly good players who played bridge competitively, managed to tolerate me.

You might have noted that I used the past tense with regard to myself.  Unfortunately, I engage in many activities that are cognitively exhausting, so my cognitive resources have been too exhausted for me to play.  However, I do plan to change that in the future, perhaps after I retire from my formal job.  Bridge provides both cognitive and social exercises that promote healthy memories.

© Douglas Griffith and healthymemory.wordpress.com, 2015. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Douglas Griffith and healthymemory.wordpress.com with appropriate and specific direction to the original content.