alt Hacker NewsI think it's a great system of checks and balances- billionaires are only created by dealing with a lot of people and successfully solving a lot of problems. Once they have it, it's work to hold on to the money though. Politicians don't really produce anything measurable to show if they've helped or hurt society, and so they work to devalue the meaning of the dollar.
If you get rid of wealthy people's power, what takes its place other than politicians?
Hi again. You are definitely correct on the first point. But the second point shows a fundamental misunderstanding of how the economy works. Our economy highly favors capital over income. The only way to make billions and then lose it all is to be a complete degenerate. They will always be wealthy. The amount of money these people lose on a given day as the stock market bobs around demonstrates that once achieved, money in the hands of the wealthy operates on a level the average American really can't fathom. Over time, they will always continue to do well. Deploying capital, once earned, is not hard. If it is work, it must be one of easiest things to do in the world. It's like saying trust fund babies have to work hard. If it was hard to hold onto wealth our society would be an extremely different one. It's in fact so easy that a lot of the economics around startup investing comes from the phenomena that rich people get bored with their own money. Why settle for boglehead style returns when you can yolo millions of dollars into a potential > 10x return. How do you even spend a billion dollars? You really can't. The only way is to put it into things were again, it is far more advantaged than actual income. Yes there is some work involved in vetting and talent etc. But don't buy into all the hype. A lot of it comes down to luck and getting to the point where you have the capital to spread your bets, knowing the economics mean that even if you lose, you will still win. It's the getting there that is hard. Not the staying there.
It's very important to acknowledge this. Because this wealth is retained long after w/e the societal problem addressed that created the wealth is solved. It is an open question how to deal with that problem, which becomes a societal issue in its own right. I however also share your hesitancy to turn over said gains to politicians, who don't seem to solve any problems or produce any solutions. Unfortunately we shouldn't also forget that they are society's elected proxies. Perhaps we can strive for a system were both politicians and billionaires are weakened in furtherance of some notion of the common good. The idea of "reinvestment" need not be either a wholly public or private enterprise. Most successful societies understand the checks and balances lie somewhere in thinking less in terms of a public/private dichotomy and more like a public/private partnership. The United States used to operate more like this, before the Reagan era ushered in a time of pronounced deference to capital [1]. It would really not take much to bring things back into a more reasonable balance.
https://en.wikipedia.org/wiki/Reaganomics