The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Taleb: ... one can argue that the system should ensure downward mobility, something much more important than upward one. The statist French system has no downward mobility for the elite. In natural settings, the rich are more fragile than the middle class and we need the system to maintain it ... Spitznagel: ... what's hidden beneath all the aggregate income-inequality data is much cross-sectional downward mobility, in that most people in the right tail of income spend very little time there. The transience of success is assured by natural entrepreneurial capitalism, and is precisely what works about it: unseating the top, driving out the lucky and unworthy. Without this dynamic, capitalism doesn't work. It isn't even capitalism, but rather oligarchic central planning. Yet modern government chips away at this dynamic in so many ways, most significantly by providing floors and safety nets to crony bankers and other financial punters. What irony that the same people who today loudly endorse a global wealth tax to rein in inequality were also the very ones saying guys like us were nuts for opposing the bailouts back in 2008!
Spitznagel: ... what's hidden beneath all the aggregate income-inequality data is much cross-sectional downward mobility, in that most people in the right tail of income spend very little time there. The transience of success is assured by natural entrepreneurial capitalism, and is precisely what works about it: unseating the top, driving out the lucky and unworthy. Without this dynamic, capitalism doesn't work. It isn't even capitalism, but rather oligarchic central planning. Yet modern government chips away at this dynamic in so many ways, most significantly by providing floors and safety nets to crony bankers and other financial punters. What irony that the same people who today loudly endorse a global wealth tax to rein in inequality were also the very ones saying guys like us were nuts for opposing the bailouts back in 2008!
Piketty data shows that the post-WWII Keynesian decades were most transient for the top - while the natural r>g tendency bites towards greater inequality.
... we pursue a small present good which will be followed by a great evil to come, rather than a great good to come at the risk of a small present evil. The latter is what I call roundaboutness, which is central to strategic decision making, especially investing. It is about counter-intuitively heading right in order to better go left, or taking small losses now -- and willingly looking like an idiot -- to build a strategic advantage for later. [...] We have roundaboutness to thank for civilization itself ...
[...] We have roundaboutness to thank for civilization itself ...
This is then related to Taleb's "skin in the game" idea. It seems to me, currently capital owners and top CEOs are entitled to maximum anti-roundabout profits with minimum exposure of their skin to the game. You need a government for that indeed - but not "people's government for the people".
Then they two address Piketty directly - but that is not worth my time.
by Frank Schnittger - Jan 26 3 comments
by Frank Schnittger - Jan 31
by Frank Schnittger - Jan 22 3 comments
by Cat - Jan 25 55 comments
by Oui - Jan 9 21 comments
by Frank Schnittger - Jan 13 28 comments
by gmoke - Jan 20
by Oui - Jan 15 91 comments
by Oui - Feb 28 comments
by Oui - Feb 13 comments
by gmoke - Jan 29
by Oui - Jan 2731 comments
by Frank Schnittger - Jan 263 comments
by Cat - Jan 2555 comments
by Frank Schnittger - Jan 223 comments
by Oui - Jan 2110 comments
by Oui - Jan 21
by Oui - Jan 20
by Oui - Jan 1841 comments
by Oui - Jan 1591 comments
by Oui - Jan 144 comments
by Frank Schnittger - Jan 1328 comments
by Oui - Jan 1221 comments
by Oui - Jan 1120 comments
by Oui - Jan 1034 comments
by Oui - Jan 921 comments