[ExI] retrainability of plebeians

[Rafal Smigrodzki]

On Sat, May 2, 2009 at 6:30 AM, Stathis Papaioannou <stathisp at gmail.com> wrote:
> 2009/5/2 Rafal Smigrodzki <rafal.smigrodzki at gmail.com>:
>
>> Same with GI - the problem is in feeding the parasites and punishing
>> workers over long time. At first just a few parasites, and not
>> punishing much but as parasites breed, they vote for more money, so
>> the burden on workers is higher, so there are fewer workers and more
>> parasites, and the positive feedback effects feed on each other, until
>> something breaks.
>
> Something breaks when, after a few years of this, the population
> realises they are becoming increasingly worse off relative to those
> countries that have better economic systems. So in the end every
> country in the world should converge towards low taxes and low
> government spending, if that does indeed lead to better outcomes.
>
### Yeah, this happened and I was actually there - in Eastern Europe
in the early 90's. Except it took not a few but between 40 and 70
years for the masses to snap out of it and demand real change (as
opposed to Obama-change). And of course once the capitalist prosperity
arrives it takes less than 30 years for the society as a whole to
forget where it came from. They start thinking prosperity is something
that just happens, and a birthright, too, so of course soon taxes and
government power start growing again. And thus the never ending cycle
continues, the yang of wisdom, capitalism, and progress is again
smothered by the yin of stupidity and envy.

Actually, the effective average tax rates on accumulated wealth in
primitive societies are in excess 85% (according to Tyler Cowen), so
today's 30 - 60% is some progress already - but it took 10,000 years
to achieve.

Rafal