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Post 16 Feb 2011, 1:47 pm

Ozymandias wrote:Alright, then name me one society throughout history which managed to not only avoid wealth inequality (and I don't mean pure socialism, but something more on par with America in the 60's) and simultaneously managed to persist as a politically relevant polity for a few hundred years without any statistically significant change in the wealth gap. We've had 5000 years to get it... if we haven't done it yet, it probably won't happen.
Hmm. I think your test is unreasonable. Firstly because very few places have seen such wealth equality before the last hundred years or so. Secondly because society has changed massively since the Enlightenment. Thirdly because very few societies have really passed the test of persisting for a few hundred years in a very stable state - often not just because of internal changes, but because of external factors like invasion.

The concentration of wealth into the hands of the few is the unavoidable result of human nature and the ability of the wealthy to accumulate more wealth. Its immutable, for better or worse.
I find that to be a pretty defeatist attitude. Slavery used to be the acceptable extension of this, people being so unequal that they were being owned by the few, but it's now far less well regarded (alas, not eradicated).

PCH - booms are great, ain't they? Shame they often get followed by a bust. How you liking the current one?
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Post 16 Feb 2011, 3:39 pm

danivon wrote:PCH - booms are great, ain't they? Shame they often get followed by a bust. How you liking the current one?


Doing great thanks. One man's boom is another's bust and vice versa. Buy low and sell high and all that...

But the point of the UT paper isn't triumphalism if that's what you're getting at. Rather, they showed that income inequalities can be the result of unusual leaps in some sectors and stagnation in others but that fact shouldn't deter countries from innovation.

Or were you just trying for a drive-by point scoring?
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Post 16 Feb 2011, 3:54 pm

No, I was pointing out that a boom is not necessarily as good a thing as sustained growth. A boom suggests that that there are bubbles, and bubbles bursting can be messy. I'm glad that you personally are doing well out of America's current economic malaise (your nation is still recovering, however, while mine has been taken over by the anti-Keynes faction and we are looking at a potential double-dip), but you do realise that the nation as a whole has been set back, surely.

That inequalities can result from unequal sector growth shouldn't be a surprise. However, the effects of that - and of unequal sector growth itself - are not necessarily benign. It also doesn't mean that innovation is caused by greater inequality.
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Post 17 Feb 2011, 7:33 am

dan
It also doesn't mean that innovation is caused by greater inequality.

In the case of the recent financial crisis its a very few traders in CDS and derivatives that made out like bandits. Most ordinary investors and consumers saw their wealth disappear. Those CSD's and derivatives were very innovative.
Oh, and here's the thing, the innovation came BEFORE the recent transfer of wealth. In fact they were the major mechanism that produced the transfer of wealth.

The Internet, arguably the greatest innovation of the last 25 years, didn't come about because of a desire to accumulate wealth by a few entrepreneurs. Its innovation came about because of a desire by the US government, and then others, to produce a better communications system. All the original scientists working on wanted it was to have their computers talk to each other
Last edited by rickyp on 17 Feb 2011, 8:31 am, edited 1 time in total.
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Post 17 Feb 2011, 8:16 am

rickyp wrote:Fax
But i really don't believe that in somewhat modern countries with decent standards of living and economic growth the objective income equality plays anykind of role, it's all an emotional thing.


So being pissed off that your house is worth less than your mortgage, that you can't afford to send your kids to college, that you can't move out of a job you hate because you won't get insurance...(I guess that might change soon) none of these are valid because its just an emotional response?


They are a valid emotional response. That doesn't translate into a valid stance in a political debate.
There are many different reasons why you can have the problems you describe and most of them are reduceable to "it's your own fcking fault".


rickyp wrote:But to dismiss this as emotional is silly. People are emotional creatures. They are motivated not just by physical rewards but by emotional rewards.


I'm aware that it's far more likely that people get emotional than approach an issue rationally.

rickyp wrote:The people of Egypt marched and ended Mubareks reign becasue they had amassed an emotional resevoir of resentment. In Egypt income disparity is enormous and was at the heart of that resentment.


True, but the resentment was based on objective problems. No jobs, crappy standard of living. That problem is different than people in Germany or the UK bitching that there are millionaires while the poor can just afford 2 cars.

rickyp wrote:But all of that is triggered by emotional reaction NOT some kind of intellectual struggle.


And i repeat again, i don't care that people usually don't use their heads. Emotions are a poor substitute for rational thought and debate.

rickyp wrote:The rage of the Tea Party is caused by resentment to a changing society that they seem to have trouble gaining personnally. Some it directed at the demographic reality that the US is becoming. Some of it aimed at Wall Stret. Muych at govenrment. They might not have a real rationale focus on whats really letting them down ...but their emotions are real and valid .


I really don't care about the validity of their emotions. I care about the fact that you can't have a rational discussion with people who are emotionally involved. Now i have not spoken with a TPier, however jobrelated i had the pleasure to face treehuggers and vegan nuts and all kinds of emotionally involved people and they share a common trait. There's no talking to them, because they usually don't have a clue what exactly it is they want. Yes they have some diffuse ideology, but if you get down to it they are clueless.
I assume TP people are the same, or socialists when they talk about fairness or Republicans with their brainless mantra of lower taxes.
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Post 17 Feb 2011, 9:05 am

rickyp wrote:The Internet, arguably the greatest innovation of the last 25 years, didn't come about because of a desire to accumulate wealth by a few entrepreneurs. Its innovation came about because of a desire by the US government, and then others, to produce a better communications system. All the original scientists working on wanted it was to have their computers talk to each other


Wow, that is a load of @#$! crap. That has to be one of the biggest example of screaming niavette I have ever seen. You think the scientist who created the Internet didn't thinf of the commerical applications and/or desired to take advantage of it? How older are you?
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Post 17 Feb 2011, 9:37 am

Al Gore told me that the thought of commercialization came much later, well after he invented the Internet. Give him a call Archduke, he'll set you straight.
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Post 17 Feb 2011, 12:47 pm

geojanes wrote:Al Gore told me that the thought of commercialization came much later, well after he invented the Internet. Give him a call Archduke, he'll set you straight.

:laugh: :laugh: :laugh:
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Post 17 Feb 2011, 1:01 pm

archduke

You think the scientist who created the Internet didn't thinf of the commerical applications and/or desired to take advantage of it? How older are you?


The origins of the Internet were its military application.... The scientistrs working on it had no desire but to fulfill that specific need. It wasn't till 1982 and the first ISPs that commercial applications began to be developed and none of them were developed by the originators...
How old are you?

http://en.wikipedia.org/wiki/History_of_the_Internet

However, the point to point communication model was limited, as it did not allow for direct communication between any two arbitrary systems; a physical link was necessary. The technology was also deemed as inherently unsafe for strategic and military use, because there were no alternative paths for the communication in case of an enemy attack.

As a response,several research programs started to explore and articulate principles of communications between physically separate systems, leading to the development of the packet switching model of digital networking. These research efforts included those of the laboratories of Vinton G. Cerf at Stanford University, Donald Davies (NPL), Paul Baran (RAND Corporation), and Leonard Kleinrock at MIT and at UCLA. The research led to the development of several packet-switched networking solutions in the late 1960s and 1970s, including ARPANET, Telenet, and the X.25 protocols. Additionally, public access and hobbyist networking systems grew in popularity, including unix-to-unix copy (UUCP) and FidoNet. They were however still disjointed separate networks, served only by limited gateways between networks. This led to the application of packet switching to develop a protocol for internetworking, where multiple different networks could be joined together into a super-framework of networks. By defining a simple common network system, the Internet Protocol Suite, the concept of the network could be separated from its physical implementation. This spread of internetworking began to form into the idea of a global network that would be called the Internet, based on standardized protocols officially implemented in 1982
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Post 17 Feb 2011, 2:01 pm

rickyp wrote:The origins of the Internet were its military application.... The scientistrs working on it had no desire but to fulfill that specific need. It wasn't till 1982 and the first ISPs that commercial applications began to be developed and none of them were developed by the originators...


I am very familiar with ARPA. And What I am saying is that the scientist working on the project did not consider non-military commercial applications of the technology. Let's see. The guy assigned to head theARPA's IPTO project in 1958, JCR Licklider, was Vice President of BBN Technologies at the Time. Who is BBN? Why it is a private R&D company in Massechusetts. Really, so he had no concerns over the commercial applications?

Licklider's replacement in 1964 was Ivan Sutherland. Who was Sutherland. A professor at Harvard University at the time of taking over who in 1968 did guess what....wait for it.......started his own technology business that specialized in guess what....wait for it.....real time computer hardware ccommunications

Let's see. Next was Robert Taylor who prior to working ARPA was with Martin Marietta and who left ARPA to work for Computer Systems Laboratory (CSL) at Xerox PARC which spawned all those billion dollar computer companies that are based on the internet.

Hey, let's also lool at the fact that the first 4 locations connected to it were UCLA, Stanford University, UC Santa Barbara and University of Utah. And we all know that college professors never think about the commercial applications of technology and only ever work for the benefit of the military.

The first publically available version of ARPANet was Telenet in 1975. Guess who did that......wait for it.....BBN Technologies.

Yeah the people who did the early work on ARPANet had no interest in the comercial applications of the work. Go right ahead and continue to believe that.
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Post 17 Feb 2011, 2:06 pm

Ricky - Yeah, I was going to pick up on your 'last 25 years' with the Internet. DARPAnet went live in 1969, and the building block protocols were introduced in the 1970s before full roll-out in the 80s. Of course, it wasn't until the 1990s that it took off.

Archduke, perhaps by 'the scientist' (in reality many scientists were involved in developing the internet), you were thinking of Tim Berners-Lee, the developer of HTML and the father of 'the Web'.

How did he take advantage of it? Well, he ... umm ... released everything open source and took zero royalties. Then he set up W3C, which developed updated and royalty free sets of standards to improve the web.

He has worked on making government data more freely accessible over the internet, and is in favour of net neutrality, which essentially means being opposed to corporate concerns or governments being able to exert too much control over the internet.

I'm sure he's no pauper, but he's not made himself a billionaire and seems to be more concerned with the social benefits of the internet than just the profit potential.

I suppose to you he's just naive, though, and should 'grow up'. But I'm pretty proud of how my countryman gave his creation to the world.
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Post 17 Feb 2011, 2:19 pm

danivon wrote:How did he take advantage of it? Well, he ... umm ... released everything open source and took zero royalties. Then he set up W3C, which developed updated and royalty free sets of standards to improve the web.


except that W3C is a for profit company from which I believe he takes a salary that does guess what.....wait for it...... coordinates and expands on all that stuff he released for free. Yeah he had not commercial interests in doing it.
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Post 17 Feb 2011, 3:29 pm

Archduke, I never said he was making nothing out of it. But he's far from living the high life. Hence my words:

"I'm sure he's no pauper, but he's not made himself a billionaire and seems to be more concerned with the social benefits of the internet than just the profit potential."

I'd appreciate it if you read that again, as it seems you didn't understand me the first time.

By the way, I'm not sure that W3C is a 'for profit company', as you state. It's a consortium that has corporates as members, but gains revenue from those memberships, from grants and from donations. I'd be very surprised if it made a profit and people were donating money to it. I can't find whether TBL does get a salary as a director, or not. He was in 1999 (some years after W3C was set up) employed by MIT and said that was where he got his money from. In 2004 the Times reported his income as being modest:

http://www.timesonline.co.uk/tol/commen ... 841822.ece
While others have made millions from the web, Berners-Lee earns a modest academic salary and until recently drove a 20-year-old VW Golf each day to his sparse, nondescript office at the Massachusetts Institute of Technology (MIT). There he maintains standards and develops his creation as the director of the World Wide Web Consortium (W3C).


Please, Archduke, not every innovator does it for the Benjamins...
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Post 17 Feb 2011, 5:54 pm

And there is certainly nothing in the UT paper that claims that the boom happens at the moment of creation of whatever technology is behind the boom. Nor that an invention must be invented for the sake of commercial gain. Just that when a boom happens, some people jump up the pay scale and others are left behind. Nothing wrong with that. Indeed, if innovators weren't well-rewarded there would be precious little incentive to innovate.

Anyhow, the internet is a tool, that those who made the original links between computers are not, perhaps, the ones who benefited the most from its application is beyond irrelevant. Knowing how to use a tool effectively is its own sphere of innovation.

Exploring the UT site I found another paper that gives a breakdown, county by county, of where the biggest income disparities are in the US. Anyone care to guess where the top 5 are?
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Post 18 Feb 2011, 7:31 am

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Just that when a boom happens, some people jump up the pay scale and others are left behind

OK. But what does that have to do with your claim that it is "income disparity" that creates innovation?

Innovation generally begins with individuals with ideas, or with organizations that have needs not being met, who seek answers to those unmet needs. Either case can happen when societal income disparity is large or small.
That innovation happens with greater frequency in times of less income disparity is probably due to a larger base of educated people in times of less disparity. When income is concentrated in a few elite hands, generally educational opportunities are less available AND the elite tend to promote their progeny without regard to the qualities of their progeny. Inheriting wealth is the easiest way to make money, and as I'm sure you are aware - people with no talent require a road to success with no competition