This is an interesting article regarding wealth distribution. One thing they note is that this unevenness contributes to tax laws, business practices, etc. that favor the hyperwealthy. However, theres another aspect of this weird distribution thats overlooked. The market for goods and services becomes fundamentally altered. For example, the headline points out that 85 people hold as much wealth as the half of the earths population. Think about this in terms of market for a product. Your price point to achieve maximum market share had to be pretty low to hit those 3.5B folks. Either that, or it has to be outrageously high to market to those 85 wealthy people. And do those 85 people have the same purchasing power as 3.5B? No, even if they have the money. There are many things that you dont need in quantity because were humans. Toilet tissue, for instance. Those 85 wealthy folks arent buying the toilet paper equivalent of 3.5B people. Spoons, TVs, even houses and cars. Theres simply a limit on how much a human would spend on some items even at astronomical prices. Folks like to look at this from a regulatory perspective, but there is a clear detriment to entrepreneurship and business that is frequently overlooked.
Posted on: Wed, 05 Mar 2014 02:25:48 +0000
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