Thread View: sci.econ
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Started by fbonsignore
Sun, 03 Jul 2005 12:44
Superbillionaires: a financial note
Author: fbonsignore
Date: Sun, 03 Jul 2005 12:44
Date: Sun, 03 Jul 2005 12:44
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Thinking of those inordinate fortunes, it comes tomind the next question: how many times does accumulated financial wealth (including debt) can buy Earth? The whole production of Earth and the accumualted real capital... Is tehre an approximation of it? There are several measures I can think of, so the question also presents by itself: are those fortunes meaningful in real terms? Redistrribution is an issue and economists argue from a Pareto point of view (see Home for All). But then the question is: do we really havet o be fair when it comes to superfortunes tat are almost meaningless? Superbillionaires already have real wealth accumulated plus superfinancial fortunes. Would it be unfair if those fortunes were redistributed? What wpuld be better, to redistribute them (causing world inflation, though this inflation may correct the relative price problem, where some goods are too pricey bacause their price would be negligible, so they have to paid in bulk and then languish for years in stores... that is, relative prices work well in theory, but the moment they turn into real quantities... how many digits do we have for chiclets to have the right price, for instance?), or simply take away zeroes from big fortunes? I guess a correct measure for the velocity of worl money would be money laundering, as it has to be cleansed fast, so after having that measure a good multiplier can be calculated... and a pro rata based on real wealth can be used as a guide to take away zeroes from superfortunes... Fabrizio J BOnsignore now Danilo J BOnsignore
Re: Superbillionaires: a financial note
Author: Fabrizio J Bonsignore
Date: Sun, 03 Jul 2005 13:07
Date: Sun, 03 Jul 2005 13:07
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The same argument can be applied to some debts and to interest rates. Another good measure would be to calculate allowable financial wealth based on a fair interest rate measure of owned real wealth, that is, correcting excessive returns to capital to adequate them to what real wealth actually represents, accumulated capital (it may need to be discounted based on some business' natural over-normal economic benefits to be fairer [fairness in relation to theis fact recognition], and accumulated financial wealth be automatically discounted [or redistributed] by the banking system' computer programs); also, the returns to scale of capital should be included, with a penalty if excessive liquid capital is not applied to possible projects where economis of scale ni capital are important (mainly, I think, scientific research and superengineering projects). The fact is that from a psychological point of view (see the related threads), superfortunes cannot even be considered: tehre is a point where everything is bought out, and a limit to what any individual can use to satisfy needs (day has only 24 hours...). Many problems can be sol;ved if we leave aside truly fair economic fairness to a more humane system of wealth redistribution... Fabrizio J BOnsignore now Danilo J Bonsignore (it looks like the CIA and other secret services don't want this kindof contributions and ideas! But then they say there are two CIAs...)
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