Message Number: 718
From: Daniel Reeves <dreeves Æ umich.edu>
Date: Mon, 20 Aug 2007 10:16:41 -0400 (EDT)
Subject: mind the gap
We've been debating this essay
   http://www.paulgraham.com/gap.html
and I thought I'd move it to improvetheworld...

I'll start:  Graham is so right!  The income gap between the rich and the 
poor is wonderful!

Actually it started more as a debate about the nature of capitalism and 
interest ("why should money 'grow'?").	Here was the gist:

* [the economy] is a zero-sum game, isn't it?
- no

* those earning money are taking it away, even if only indirectly, from
   other people, no?
- no, not if you think in terms of wealth (wealth = stuff you want,
   money = way to transfer wealth)

* Or am I totally simplifying the haves vs. the have-nots with my pie
   metaphor?
- yes, that's precisely the Daddy Model of Wealth!

* Is it THEORETICALLY possible for no one to owe any money at all in this
   world, i.e., that everyone just has money that "grows"? Or does money
   only grow if it is taken away from others?
- You're right, not possible, but for the opposite reason of what you seem
   to be suggesting.  You grow money by giving it to someone (lending it),
   not by taking it away.

It even got a bit heated, along the lines of "Trixie, I don't think it's 
right for you to lash out against capitalistic/yootlicious ideas without 
grokking the answers to your questions [above]".

Oh, and I offered a yootle to the first person who could answer the 
quasiphilosophical question why money *should* grow, with the hint that it 
has to do with human mortality.  I believe that's the only reason that 
holds in all circumstances.

In any case, Trixie wanted to resume the debate and this is clearly the 
place to do it!

DO NOT CHANGE THE SUBJECT LINE WHEN YOU REPLY (so it's easy for those not 
interested in this debate to delete the whole thread).

Ok, go!
Danny

-- 
http://ai.eecs.umich.edu/people/dreeves  - -  search://"Daniel Reeves"

  "Everything that can be invented has been invented."
    -- Charles H. Duell, Commissioner, U.S. Office of Patents, 1899.