Thursday, November 22, 2007

Positive Feedback, Rivalrous Rates

I tried to make this as short as possible. I'm sure I've gone through a more thorough explanation somewhere else, but this is a short entry because it's really a pretty simple concept that doesn't need elaborate hypothetical situations and such.

Nathyn (a state socialist who trolls the Free Talk Live forums) asks:
"Authoritarianism can cause poverty and inequality (I.E., North Korea and Dalits in India). But what proof do you have that inequality is caused primarily by governments?" [Emphasis mine]
It's just my personal belief that government is the primary cause of inequality. I haven't gone through an exhaustive list of potential causes of inequality trying to estimate the contributions of each factor toward existing inequality, but as I'll show, it seems to be a rational conclusion based on how the state works.

Power has the property of being usable to get more power. And in politics, all power comes at somebody else's expense, for all power one gains in politics, somebody else must lose some power. Anybody who gets some perpetual political power (not the temporary power of elected officials or those who appear to be in charge, but those who can influence said elected officials essentially irrelevant of who the actual individuals are, including after a political revolution, i.e. the rich), will be able to use that power to increase their own political power. For example, a $50,000 bribe that leads to a new regulation that puts enough of the competition out of business that the centralizing effects bring in another $100,000 in capital.

The longer this system is allowed to run, the more centralized the wealth becomes. The richest don't get much power from the poorer anymore, so they go after the next-richest. Whoever wins, they've got more power (i.e. money) for later use against whoever is next-richest. It's easy to "win" power at the expense of those less powerful, but difficult to win at the expense of those more powerful. Those in the middle will find that those below them have little power left to take, and those above them are taking what they themselves have, and so find themselves gradually weakened. At the top, power can be had at almost anybody's expense. So as the time this system has been in place increases, the centralization becomes extremely pronounced.

The system of statism has been running from the beginning of recorded history. My reason for believing that most of the present inequality is a result of politics is that one can predict from this that the inequality caused by politics will be enormous. One also sees that the present inequality is enormous. Lacking knowledge of any other potential causes of such enormous inequality, I'm personally left with the conclusion that most of it is caused by politics.

Politics a positive feedback system with rivalrous feedback rate and inputs. The rivalrous feedback rate alone is sufficient to cause inequality, and rivalrous input is the reason why the poor are so poor. Those in power take both the best feedback rates and the best inputs. Metaphorically, they command the highest interest rates and give out the biggest loans, thus they get the most income and will eventually get the most money.


Blogger Aaron Kinney said...

Not bad. But i didnt see much distinction in your post between different kinds of power.

With politics, the state and its agents get a pseudo-moral/coercive power. This is much more dangerous than mere monetary or popularity power because it is coercive and anti-competitive by its very nature. It is a master/slave system much like those described in religious texts.

Additionally, it is a corruptive force to all that touch it. Businesses and rich folk can pay off those who wield it in exchange for unfair, anti-competitive advantages in the marketplace.

The fact that businesses and rich people pay big money for access to it is evidence that political power is stronger than monetary power.

9:09 PM  

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