
How the rich get richer – money in the world economy [video] - neom
https://www.youtube.com/watch?v=t6m49vNjEGs
======
gemlog
"You never change things by fighting the existing reality. To change
something, build a new model that makes the existing model obsolete." \-
Buckminster Fuller

Capitalism has to be replaced. Trying to change it is futile.

We've been trying to tweak capitalism for a couple of hundred years and we're
still stuck in a global board game of Monopoly.

There is only one outcome in such a game and everyone knows it: one winner
takes all and the rest ...

~~~
jumbopapa
It's not like capitalism was just put here by someone, it's how free humans
will interact by default. The idea that it can be "replaced" is one of the
most asinine that I've ever heard. Even in places that have tried to practice
something different capitalism has still existed in the way of black markets
and has always emerged as king.

~~~
xyzzy123
There are limits to how much a person can own without a state or an army
backing them up.

That is; a society, and a social contract.

Your basic “apple-for-a-dollar” trading will always be around, sure.

But billionaires and massive wealth concentration are a thing that can only
exist if society is structured to allow it.

------
extralego
What are one or more modifications to the board game Monopoly which would
allow the gameplay to sustain itself; which is to say that nobody would win?

~~~
Maybestring
A redistributive property tax.

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rskar
At about 25 minutes into this, the claim was made that the world was
financially stable, currencies were backed by gold, the "real economy" was in
balance with amount of money available, until 1971, when the "Nixon Shock"
happened. It's somewhat true, but Wikipedia gives a more nuanced story:

\- There was the Bretton Woods system (c. 1958) which established a kind of
gold standard for currencies; the U.S. dollar was pegged at $35 per ounce, and
the U.S. owned over half the world's official gold reserves—574 million ounces
at the end of World War II. Foreign governments could exchange their dollars
for gold.

\- As Germany and Japan recovered, the U.S. share of the world's economic
output dropped significantly (from 35% in 1950 to 27% in 1969). The French
called the Bretton Woods system "America's exorbitant privilege" \- i.e. the
U.S. could produce a $100 bill for a few cents, but anyone else would first
need to produce $100 worth of goods to get one.

\- In February 1965 French President Charles de Gaulle announced an intention
to exchange its U.S. dollars for gold. By 1966, non-US central banks held $14
billion, while the United States had only $13.2 billion in gold reserve (with
only $3.2 billion available to cover foreign holdings). By 1971, the money
supply had increased by 10%.

\- In May 1971, West Germany left the Bretton Woods system. Other nations
began to demand redemption of their dollars for gold (e.g. Switzerland
redeemed $50 million, France acquired $191 million). On August 5, 1971, the
United States Congress released a report recommending devaluation of the
dollar. On August 9, 1971, Switzerland left the Bretton Woods system.

\- On August 15, 1971, Nixon directed that the convertibility of the dollar
into gold or other reserve assets is to be suspended (with certain exceptions)
- hence, foreign governments could no longer exchange their dollars for gold
(presumably for the time being, at first).

From this lay-person's perspective, an improving economy and a growing
population would naturally bring about an increase in the demand for money.
Gold isn't as constraining on the supply of money as some folks may insist
(there were already too many greenbacks for the gold in reserve by 1966).
Everyday working Joes will still need some cash in their pockets to purchase
their day-to-day needs, and the more such "Joes" you've got the more money
you'll need to put some into the newer pockets. For that reason alone,
fractional-reserve banking becomes a thing; at the end of the day, a "Joe" has
a more immediate need for food-clothing-shelter than for gold. So long as
banking clients collectively have other more pressing desires than that for
gold, the "virtual gold" of its ledger books could suffice.

