The simple math of the Yard-Sale Model shows that if everybody started out with equal money in a fair economy, the outcome tends toward one person holding all of the money. The cool graphical simulations on this page demonstrate why.
The simple math of the Yard-Sale Model shows that if everybody started out with equal money in a fair economy, the outcome tends toward one person holding all of the money. The cool graphical simulations on this page demonstrate why.
If it’s not a good model, then you are welcome to pick it apart. However, the study that applied it for the 2017 paper in Scientific American found that it matches observed data about our economy stunningly well when applied.
As the author of that study was quoted here saying, the simple Yard Sale Model here can’t begin to explain a complex economy, but its function is like an X-ray to cut through the complexity to see the bones of the thing.
In any case, we know empirically that Trickle Up is the actual effect of the capitalist system. If there’s a model that can explain the mechanism more accurately, I’d be happy to hear it.
Scientific American isn’t an academic journal and there’s no paper about this published in 2017. There’s a Scientific American article about it written in 2019 though. I think you’re referring to the part in the article that says it matched real world data remarkably after they modified it in 2017.
I don’t think this model is an x-ray that reveals the bones of the system, as its premise about how it works is plainly inaccurate. Maybe scientists can gain actual insight by studying it further but I don’t think drawing conclusions such as the title on social media is healthy.
At best the model teaches why gambling is a bad idea even if the chances are perfectly even. At worst someone looks at this and decides all anti capitalist evidence must be flimsy
Yes, I misrembered the year. And while Scientific American is not a journal, at least the article explained the work in some depth and provided evidence. Here, you’ve given your opinion which boils down to, “No, it doesn’t.” Totally valid, as opinions go, but not very edifying to us readers.
It is not an opinion that people don’t earn money by randomly trading with others, wtf are talking about??
I’m actually triggered about this
Labor has value. You have access to some amount of labor each week that you value at [your salary]. Your employer values your labor at [some higher value] and thus “wins” at the trade.