How Massive Inequality Happens

June 2, 2015

Recently a French economist named Thomas Pikkety wrote a book called Capital In The Twenty-First Century.  It’s been getting a lot of positive reviews.  He tracks the overall dynamics that lead to vast accumulations of wealth and capital.  After carefully analyzing datasets over twenty countries which span centuries, he concludes that absent major political change, a small handful of powerful families will end up owning and controlling everything.


It’s not difficult to understand how capitalism, without any wealth redistribution mechanisms, will almost inevitably lead to fewer and fewer hands controlling all of the society’s resources and wealth.

It comes down to this.  Say you invest your money and are able to earn 5-7% interest each year.  Also, assume the national economy only grows at 2%.  Your wealth is growing faster than the economy, so slowly but surely you begin to own more and more of the economic pie.

Imagine a pie that is slowly growing at a rate of 2% each year.  Next imagine a red splotch within that pie which grows at 5%.  That red splotch (the rich) is growing faster than the pie.  The only way it can grow at that rate is to take more and more of the pie from others.

Maybe it’d help if I actually worked out the numbers.  Say we begin with 10,000 slices of economic pie.  The rich own 2,000 (20%) slices of the pie, everyone else combined has 8,000 slices of pie (80%).  Now due to everyone’s hard work, the pie grows 2%.  So the new pie has 10,200 pieces.  The rich’s share of the pie grew at 5%, so they now have 2,100 (2100/10200 = 20.59%) slices of pie.  So everyone else has 8,100 (8100/10,200 = 79.41%) slices of pie.

As time goes on, these wealthy families simply pass on their wealth to their children, who do the same, and they become more and more wealthy simply because they were born with money. There has been a slow trend toward oligarchy.

Ok, so that’s a nice hypothetical theory, but what do real numbers and economic history show?  Analysis of real world datasets support this idea, but there are complications to consider.  Tax policies in countries change over time.  Here in the United States for example, we had really high tax rates in the 1950s and 1960s, and capital growth was actually slower than economic growth.  That was also the time we had the strongest middle class.  At other times (such as now), tax rates on the rich have been very low and capital growth has exceeded economic growth.

Wars, uprisings, and rebellions complicate all of this as well.  The World Wars led to a lot of destruction of wealth.  Rental homes were blown to bits.  Governments and their currencies collapsed.  Farms and properties were taken over by invading enemy armies.  All sorts of things happened.  Uprisings and rebellions lead to expropriations, where the people take from the rich and redistribute it amongst themselves.  We can’t forget inflation either.  Wars are financed through borrowing and printing money, so that destroys capital for the rich, unless they’re the ones who lent the money to the government in the first place, or are supplying the war munitions.  So it’s not quite so simple, but the overall idea stays the same.

Piketty argues that we fight this trend of inequality through progressive taxation, greater financial transparency, a global coordination of wealth taxation (no foreign tax havens), and a global registry of financial assets.  This is obviously preferred over wars, uprisings, or printing lots of money to inflate away their wealth.

Some will argue that society needs some degree of inequality in order for growth to occur.  I agree.  I’m not an advocate for complete equality.  However, this is a matter of degree.  There are extremes in everything.  Like most people, I feel we should strive for equality of opportunity, not necessarily equality of outcome.  People shouldn’t be wealthy simply because they inherited their parents money.  Though this is hard to do in practice, we should strive for a society where people are self-made and start off life on a relatively equal playing field.  People need to be given every opportunity to get an education, job skills, and anything else required to be productive and active members of society.

Many will argue that a person’s income reflects their productive capacity.  If you believe this, I recommend you read the Nobel laureate economist Joseph Stiglitz’s book The Price of Inequality.  He clearly shows that the highest earners in today’s society are primarily “rent seekers”, and they’re very often involved in schemes which take advantage of the tax payer and bailouts.  Our system has been increasingly shifting toward one where wealth and income are redistributed not from the top to the bottom, but from the bottom to the top.

Extreme inequality is a sort of cancer which infects our society at every level.  Wealthy elite purchase laws and regulation which work in their favor.  The entire system of justice is corrupted.  Considering our upcoming presidential election here in the United States, we’re all hearing about the different candidates and which billionaires are backing their campaigns.  The idea of democracy is one person, one vote.  But today there is too much money in politics and we all know the system isn’t working for us, the common people.

Topics: Economics, Politics | No Comments »

Exhaustion And Your Brain

May 29, 2015

Do you all want to hear something strange?  For the past week I’ve been running eight miles every day and I’ve been completely exhausted, so exhausted that last night I slept for eleven hours and woke feeling tired.  That’s how exhausted I’ve been.  Apparently this can do strange things to your brain.

During last night’s eleven hour slumber, what do you think I dreamed about?  I stood outside of my house throwing a basketball against the rock wall.  I turned to my left and saw Russian President Vladimir Putin entering my yard, along with several KGB agents.  He was shirtless, wearing camouflage military pants.


He asked me to pass him the ball.  I tossed it behind my back, spun it on my finger, and then threw it to him.  He did the same and before long we were like the Harlem globetrotters, passing the ball behind the back, off the rock wall, under our legs, and spinning the ball on our fingers.

Eventually I got too fancy for him and he couldn’t keep up.  Not to be outdone, he threw the ball away and said, “I have another game.”  The KGB agents brought out a pile of concrete cinder blocks.  He picked up each block, one by one, effortlessly lifting and thrusting them forward with both hands toward my home’s rock wall, letting out a loud grunt each time.  Each block exploded into large pieces which were landing all over the lawn like small mortars.  Over and over he hurled these blocks at the wall, and they shattered into big concrete chunks, leaving behind huge gashes in my home’s walls.

I told him, “I can’t do that.  They’re too heavy.  That’d hurt my wrists and shoulders to throw them like that.”  He just smirked and continued on.


Before long there were chunks of broken cinder blocks all over the yard.  I had no idea what was happening but apparently they were preparing for our next little “game”.  The agents spread out and started hurling these broken concrete cinder blocks at the Russian President from every direction.   While spinning he would catch the fragments and redirect them toward me!  He hurled one at me and then another, and then another.  I tried to catch one block but couldn’t even come close to stopping it.  I almost destroyed my hands and wrists in the process.  Putin continued on, twirling them behind his back, over his shoulder, and around his head, like this was some strange sport I’m unfamiliar with.  He would release each one by spinning his arms, slinging these chunks of concrete at me like a professional softball pitcher.  I was jumping out of the way, barely able to dodge them, much less catch and redirect them back to him.

A trail of destruction was left in the wake.  Flower gardens were decimated, small trees were being knocked over, car windows were busted out, and my lawn was a disaster.

destroyed lawn

After a short while all the trees were busted and fallen over, my home’s windows were shattered, and the place looked like a warzone.

broken tree

President Putin then started walking off and all I could do was stare at him in amazement.  As he walked by I extended my arm to shake his hand.  He looked at me as if I was pitiful.  I became very self-conscious.  What kind of weakling was I?  I couldn’t even return a single cinder block passed to me!  Out of politeness he shook my swollen, cut up hand and then left with a crowd of agents who all looked upon me with contempt.

I woke up exhausted and thought, “What the heck was that?”  I consider the possibility that for a brief moment, our spheres of consciousness met in the dream world and I was simply overwhelmed.

Topics: Personal | No Comments »

Brief Thoughts On Optimism and Pessimism

May 16, 2015

I have received emails from several readers concerning my post ‘The Dark Side Of Life’.  Their responses have left me thinking that I should write a short post regarding my views on optimism and pessimism.

So what sorts of things tell whether a person is optimistic or pessimistic?  Here are some areas to consider:

1. Predictions and potential for change
Does the person expect the best or the worst outcomes in future situations?  Can bad things be changed or is the situation hopeless?  Is the external world in control, or do they have the power to change events?

2. Focus of attention
What sorts of things does this person talk and think about?  Is there a preoccupation with the negative, the positive? Does the person strike some sort of balance?

3.  Attributions of intentions
When they deal with other people, how do they think of other people’s intentions?  For example, if you’re in the office and someone snaps at you, do you think that person is just mean, or do you think they’re probably just having a bad day, giving them the benefit of the doubt?

4. Valuation
Do you believe your self/others are useless? Do you believe your self/others are loveable and valuable?

There really isn’t a right or wrong answer to all of this, but either extreme is dangerous.  Excessive pessimism can lead to depression and inactivity.  Excessive optimism can leave people unprepared, unsafe, and ill equipped for the future.  The answer is to live somewhere in the middle.

When it comes to confidence, keep in mind that people are the most over-confident in areas where they’re the least competent.  It takes competence to recognize competence.  Our ignorance in what we don’t know sustains confidence in our own abilities.

A pessimist would more easily see that people generally think too highly of themselves.  Most all women consider themselves strong, most men consider themselves good-looking, and everyone thinks their children are above-average.  We tend to accept responsibility for good deeds and not for bad deeds.  The same goes for success and failures.  Studies show that we all think we’re more ethical than our average counterpart and that we’re all better at our jobs than the average peer.  We all easily believe flattery and are easily impressed with psychologist tests which make us look good.  We tend to think our groups (our school, our country, our race, our children, even our pets) are superior.  In situations where people tend to behave less than admirably, we overestimate how desirably we would act.  We over-estimate the commonality of our foibles and underestimate the commonality of our strengths.  Also people with excessive self-esteem are more likely to become aggressive when confronted as compared to someone with low self-esteem.  Conceited, self-important individuals turn nasty toward those who puncture their bubbles of self-love.

As for judging other people’s intentions, always keep the situation in mind.  Even good people can become nasty if put in a bad enough situation.  We live in an overly individualistic culture which under-emphasizes environmental factors.

Optimists make better dreamers.  They have the confidence to pursue their dreams and try to make them a reality.  This leads them to see possibilities that a pessimist would miss.  But that comes with a cost.  Unrealistic optimists will ignore serious problems, refrain from taking proper safety precautions, and their emotional situations are often dealt with through denial, nonchalance, and blaming others.

Pessimism also has benefits.  For example, they are better at recognizing dangers and foreseeing potential problems in a plan.  Also, since they have lower expectations, they are less often disappointed.  However, they also tend to have higher rates of depression, higher blood pressure, and are perpetual party poopers.

Both optimism and pessimism are mental strategies for dealing with an unpredictable world.  Maybe being a realistic optimist is the best approach?  However, who defines what’s realistic?  If the greatest visionaries of the past had been “realistic”, they never would have tried.  There’s no definitive answer to this.

Topics: Psychology | No Comments »

How Does The Universe End?

May 5, 2015

Have you ever wondered what will ultimately happen to the Earth, the sun, and our universe, long after we’re dead?  This video explains it all.

I’ll create a rough time-line for you all to follow.

– 600 million years from now

As the sun gets older, it will get hotter and hotter.  This temperature increase will be too much for plant life on Earth and most all biological life will go extinct.

– One billion years from now

The sun’s increased temperature will boil away all the oceans, leaving it a barren rock.  Only a few types of bacteria will survive, if anything.

– 2.8 billion years from now

Life will be completely impossible on Earth, even for straggler bacteria.

– 4 billion years from now

The Milky Way galaxy will collide with Andromeda, leading to a massive reshuffling of the stars.

– 5.4 billion years from now

Our sun will begin to run out of fuel

– 7.9 billion years from now

The sun will expand into a sphere 250 times larger than it is today; Mercury and Venus will be gobbled up in the process.

– 9.5 billion years from now

Our sun will deflate into a white dwarf star and become rather dim.

– 150 billion years from now

The universe will get so cold that even the cosmic background radiation becomes undetectable.  All distant galaxies will be invisible due to the universe’s expansion.

– One trillion years from now

Stars will no longer be forming in our galaxy.

– 110 trillion years from now

All stars will have burn out.  Everything will be lifeless, black, and cold.

– One quadrillion years from now

The cold, barren rock which we call Earth will plunge into the black dwarf which used to be our sun.

– 10^25 years from now

Our sun will becomes a black hole and slowly evaporate due to Hawking radiation.  Whatever tiny particles remain from this process will be slowly stretched out into nothingness as the space-time fabric continues to expand.

– 10^100 years from now

The universe will return into the nothingness from which it began.

Topics: Physics | No Comments »

The Dark Side Of Life

April 25, 2015

This post will discuss topics I rarely talk about with anyone.  That’s mainly because if you bring these things up, it’s almost as if you’re a flawed human being.  Happiness and positivity are practically mandates in today’s society, but I think as a consequence, many people are extremely shallow and overlook many of the things which are obviously wrong with this reality. I plan to bring up the dark side of life and the sorts of things which deeply depress me.

This short, incomplete list will give you an idea why I will never have children.  I don’t want to bring any other life into this world.  I’m going to try to make this world a little better place before I go, and then I will silently exit and hope I never return to this place.

When I think on this list, I just want to go out into a log cabin and have nothing to do with this world.  I want to explore physics, consciousness, and the deepest aspects of this universe, and forget about human existence.


Also note that there’s no way I can discuss these topics in complete depth.  I’m just planning to skim over some things to reflect about.

1. The Frailness Of Our Bodies

All life has evolved from simple cellular organisms swimming in the oceans.  We’re basically complex organizations of dirt and water.  We can be injured and destroyed very easily.  We suffer immensely from disease, hunger, bad weather, bodily injuries, and many other things.  Our knowledge of our bodies is also very crude, and when things malfunction, we lack the technical ability to fix ourselves.

The human body is badly engineered, and to top it off, I find it rather disgusting.  While we’re putting cream and make-up on our faces and styling our hair, very few of us think about what’s underneath our skin, powering our bodies.  It’s really gross.

If I cut open your mid-section, that’s what both you and I look like inside.  It’s not pleasant.  There’s a reason why we stink if we don’t shower and scrub ourselves everyday in the shower.  We’re vast colonies of bacteria.  Our underarms stink.  Our breath stinks.  We have turds flowing through our insides.  Gross is an understatement.

We cover ourselves in clothing and give ourselves artificial smells with perfume, mouth wash, etc., to temporarily mask our real selves, which is abhorrent to even smell or look at.

And strangest of all, why is my mind constituted in such a way to find myself disgusting?  What a cruel state of existence.

2. Our Cruel and Stupid Inner Instincts

All life on Earth has evolved by natural selection.  There was a massive contest between species to reproduce and survive.  That’s not to say the most advanced, most intelligent, and most beautiful life-forms flourished over others.  Not at all.  All we can say is that what’s left on planet Earth is that which has been able to survive and reproduce.  That’s it.  Ticks, tape-worms, chiggers, mosquitos, and all the rest, they’re here too.

This survival process has created our brains.  Our minds are natively programmed with all kinds of evolutionary baggage and they threaten our survival and happiness.  Why do people try to control and dominate one another?  Why do people enjoy violence?  Why do we blindly follow leaders without thinking?  Why are people obsessed with sex and continually discontent with their partners in relationships?  Many things like this stem from evolutionary baggage and can be explained, but I don’t have time.  All that needs to be said is that we have stupid instincts and it causes immense suffering on this planet.


The only real weapon we have against the stupidity of our own unconscious minds is education.  We have to learn to suppress our inner instincts and realize that the behavior they’re telling us to do is not in our best interests.  However, school is boring.  And why is it boring?  Our ancestors evolved on the plains of Africa, chasing wild animals with spears.  We want to move, we want to hunt, and we want to kill things.  We didn’t evolve to sit in an office cubicle and stamp insurance forms.

All of this is why kids find physics boring but they enjoy playing Call of Duty, where they spend hours and hours killing one another with all kinds of weaponry.  To actually enjoy something like physics requires immense mental development and education.  It requires years and years of exploration into the nature of this cosmos.  Without that education, there’s no way a person would find physics interesting.  All they’re interested in is sex and money.

3. Wars

Human history is depressing.  No matter what time period a person lived in, there has always been stupid humans guided by animal instincts, bent on controlling, dominating, and exploiting everyone around them.


As time has gone on, the weapons have only gotten more and more powerful.  Now we have gatling guns which can mow down an entire crowd of people in seconds.  We have chemical weapons which will eat the flesh off of all living organisms and leave them gasping in horror as they die.  We have drones which can drop missiles on you from space – you can’t even see or anticipate your own death.  But worst of all we have…

4. Nuclear Weapons

As we speak, nuclear missiles are aimed at every major city in the world.  One slight misunderstanding or mistake and KABOOM.  The entire human race will be wiped off the face of the Earth.  Why did we build these things?  Why have they not been dismantled?  This is far beyond self-defense.  Using them only means mutual annihilation.  It’s complete insanity.


5.  Squirrely Beliefs and Religions

I understand that we are all trying to make sense of this reality that we’re experiencing, but I hate the intolerance, the anti-science, the bigotry against gays, the wars, and all the other things that so often comes along with religion and superstition.


It breaks my heart to see women’s faces cut up when they’re caught sleeping with someone they love outside of marriage, or others who are stoned to death in the streets because someone doesn’t approve of a decision they made.  I can’t believe the modern world has ISIS in it.

6.  Plagues, Disease, and Cancer

Science is the only real weapon we have against all the viruses, bacteria, and other infections which can take control of our bodies and steal our health and happiness.  If we ever let stupid, superstitious people in control of our governments, they will take funding away from biotechnology research, and we will not have any weapons against all the microscopic forces which want to ravage our bodies.


7. Natural Disasters

Despite what you may think, neither the Earth nor the universe cares that we exist.  Earthquakes, hurricanes, tornadoes and more continue to destroy our cities and kill innocent people.

Maybe one day science will gain enough control over the forces of nature to prevent disasters like this, but I think we’re a long way from that.

8. Racism

Have you ever wondered why the Ku Klux Klan dresses in white robes?  Well, white slave owners used to fill their black slaves minds with superstitions that ghosts would attack them and give them diseases if they ever tried to escape.  So, they’d put on white robes and terrify their slaves at night.  They’re vile human beings.


I hate seeing police brutality, where poor blacks are strangled to death in broad daylight for selling individual cigarettes on the streets, or children are brutally gunned down in parks.  I can’t believe it still goes on today.

9. Celebrity Culture

I don’t hate celebrities as people, but their whole culture and how pervasive it is depressing.  Go on Youtube, try to check out in the grocery store, or attempt to read the news, and there it is.  This superficial, shallow world of make-up, dressing up, sex tips, and other garbage is thrown in your face.  Is that a baby bump Jennifer Aniston?  Who knows and who cares.

Movies today are mostly special effects, violence and sex with little food for thought. Everybody’s always trying to sell us something and people are famous for doing absolutely nothing.

It’s just empty, vacuous, and devoid of intelligence.

 10. Controlled News Sources

A small handful of large corporations like AOL, GE, News Corp, and a few others own and control everything.  If they’re not selling us things we often don’t need, they’re systematically bribing and controlling our government.  As Noam Chomsky points out, their goal is to manufacture consent.


It’s depressing.  The only information we have access to is what the giant money making entities want us to know.  It’s painful to watch.

11. Wealth Inequality

We hear a lot about wealth inequality today.  The richest 1% continue to earn more and more while the middle class slowly withers away.  Are these facts true?  Yes.  If you look at the numbers, it’s happening, without a doubt.

Income Top 1 Percent


Where I live in the United States, costs for health care, education, most everything else a person needs continue to rise far faster than wages.  This is a huge topic, but we hear about it everyday.  There’s no need for me to go on about it.

Topics: Philosophy, Politics, Psychology | 4 Comments »

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