People think that economics is a zero-sum game, but the endless drive for efficiency and productivity is what makes our world possible and lifted billions out of abject poverty. It is the opposite of zero-sum.
People think that economics is a zero-sum game, but the endless drive for efficiency and productivity is what makes our world possible and lifted billions out of abject poverty. It is the opposite of zero-sum.
Thankfully, as you point out, it often does the exact opposite and makes everyone richer! But not always, not reliably, certainly not as a fundamental guarantee. "The Wedge" plot illustrates this fickleness, where about 40 years ago the American story switched from "a rising tide floats all boats" to "rich get richer, poor get poorer." The economy kept growing, but the overwhelming majority of people not only did not manage to capture a share of the new growth, they did not even manage to hold on to what they had. Yes, those on top scooped up more money than those on the bottom lost -- but how is that supposed to be comforting?
It frustrates me when certain elements preach the prosperity gospel while framing it as a matter of fact rather than self-serving faith. I personally have faith that we'll eventually figure out a compromise, but I don't believe that denying blatant trends helps us get there.
But that never happens. Ten million multiplied by twenty million is 200 trillion. You can't make 200 trillion dollars by taking a dollar away from a million people. Nobody has ever made 200 trillion dollars from anything, but if they did, it makes no sense to think there's some way it could be done by impoverishing a million people who have almost nothing. It sounds as illogical as the Matrix use of humans as batteries.
Trying to put it in concrete terms - Jeff Bezos has maybe $180B. One ten-millionth is $18K. So the scenario is, suppose Bezos got his $180B by taking $1800 each from a million people, who relied on that capital to live, and somehow multiplied it by ten.
Since nearly everyone rich has less than Bezos, anything that happens a fair amount would involve smaller numbers.
It's not as absurd as making $200 trillion, but it still doesn't sound to me like a thing that happens to the extent that it says something about economics or utilitarianism or whatever. It seems like a contrived trolley problem to me.
Software empowers people.