Posts Tagged ‘Wealth’

Alternative Futures 2

May 19, 2019

This is another post motivated by “Machines of Loving Grace: The Quest for Common Ground” by John Markoff. In this future AI, including robots and cyborgs, take over all labor. This technology is held by its few owners. So wealth is even more grossly distorted than it is today, and there are effectively no jobs for individual people to do.

To prevent violent uprisings guaranteed incomes would need to be provided to all. So people’s basic needs would be provided for, but what would provide meaning to their lives? They could have children who would have similarly bleak futures. There would likely be problems with drug and substance abuse.

Of course, there could be online games to play and, perhaps, opportunities to gamble. There could be supports for growth mindsets. There could be educational opportunities to pursue online and opportunities for athletic and artistic pursuits.  IA (intelligent augmentaion) could be life enriching for those who wanted to pursue such lives. It might also be possible to create unneeded jobs where people would pursue activities using IA, that they thought were meaningful. Even today, many work in research jobs that are designed to address problems, but who never see any of these projects implemented. HM knows of this from his own personal experience.

The preceding paragraph applies to the advanced world. What about the undeveloped or under developed worlds? Would they be ignored and allowed to suffer and die out? There could be an effort to attempt to bring these people up to the level of the developed worlds, and until this was accomplished it would likely provide additional jobs.

© 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.

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More Love, Less Greed

September 22, 2018

The title of this post summarizes the problem of our times. The immediately preceding post discussed Bezos and other billionaires giving away large sums, even a majority of their wealth. They appear to regard philanthropy as both a duty and a joy. Unfortunately, there are many other billionaires who live in the nature of Donald Trump. Trump values people solely in terms of their wealth. There are some exceptions such as those in the military who command power. At some point, additional wealth can add nothing to one’s pleasure. All humans are biological beings with biological constraints. Yet for many billionaires, such as Trump, money is regarded as a score with the goal being to have as many billions as they can. This is greed at its very worse.

Although money is a means of keeping score for these billionaires, money is a means of survival for many, and to achieving a modest middle class lifestyle for others. Here is a breakdown of wealth in the United States:

Population    % of Wealth
Top 1%            40%
Next 4%           27%
Next 5%           12%
Next 10%         11%
Second 20%      8%
Middle 20%      2%
Fourth 20%       0%
Bottom 20%     -1% (negative net worth)

Clearly there is a gross maldistribution here, and many wealthy could give away more of their wealth without feeling any pain. Moreover, the majority of this wealth is inherited wealth, so for them this wealth has not been earned. It is interesting that neither the Gates, nor Warren Buffet believe in inherited wealth. They think that inherited wealth is not good for their children. If only more of the wealthy shared this belief.

The Trump tax cut increased the wealth of the top 1% people, leaving just crumbs for the rest. And this tax cut irresponsibly increases the debt burden on future generations.

Trump himself gives nothing to charity. Moreover, his Trump Charity is being investigated by the State of New York for fraud.

© 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.

Wealth and Leisure Go Hand in Hand—except in the U.S.

March 6, 2016

The title of this post is identical to the title of an article b Christopher Ingraham in the Business section of the 28 February 2016 issue of the Washington Post.  That wealth and leisure go hand in hand has been a belief held by many, economists included.  Quite some time ago the famous economist John Maynard Keynes predicted that his grandchildren would have 15-hour work weeks due in part  to increased productivity from new machines and technology.  There have been many healthy memory posts on this topic (enter “Why Are We Working So Hard” in the healthymemory search block).  I’ve mentioned many times that when I was in elementary school back in the fifties that we were told that we would have ample free time today due to technology.  At that time it was unusual for women with children to work.  Today it appears that everyone is working more hours, so what happened to the benefits to technology?

Two economists, Charles  Jones and Peter Klenow have examined the number of hours worked as a function of the fraction of per person GDP.   So the value for the U.S is 1, and the values for other country are some percentage of 1.  The average annual number of hours worked per capita in the U.S is 877.  The only countries in the study with a higher number are Malawi, India, and Mexico.  The average number of hours worked per capita in France is 535 hours.   So the average number of hours worked in France is less than two-thirds as much as the average hours worked in the U.S.  The average number of hours worked in Italy and the United Kingdom are slightly higher than in France.

The standard of living of these countries is close to that of the U.S.  Moreover, the social  amenities offered in these countries are often superior to those offered in the U.S.   For example, medical care is free in the United Kingdom.  Not only is medical care free, but statistics indicate that the quality of medical care is superior in the United Kingdom.

So why is this the case in the United States, and why do citizens in the U.S. tolerate this situation?  I think this situation in the United States is not beneficial to health, in general, and memory health, in particular.

© Douglas Griffith and healthymemory.wordpress.com, 2016. 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.

The Matthew Effect

July 27, 2014

The Matthew Effect was named by sociologist Robert Merton who named if after a sentence from the Book of Matthew in the Bible, viz., “For those who have, more will be given, and they will have an abundance, but for those who have nothing, even that will be taken away.” Matthew was specifically referring to wealth (the rich get richer and the poor get poorer). And of course this is true. Being born into wealth carries substantial advantages, but Merton was arguing that the rule applied to success in general. Success leads to prominence and recognition. This, in turn, leads to more opportunities to succeed and more resources with which to achieve success. There is a greater likelihood of your subsequent success being noticed and attributed to you, even though others might have played a key role.

Researchers have attempted to study this effect and to differentiate it from individual potential by trying to select pools of people with similar potential and seeing how they develop. However, no matter how carefully researchers attempt to do so, their futures tend to diverge wildly over time, which is consistent with Merton’s theory. It is known that college students who graduate during a weak economy earn less, on average, than students who graduate during a strong economy. This difference tends to persist throughout the students’ subsequent career. And surely the economy in which they graduate is a random effect.

So the common sense notion that an individual’s success is solely due to the individual’s unique attributes is false. Although the individual’s unique attributes do play a role, there are also chance or random factors.