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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (761897)	1/6/2014 9:06:02 PM
From: TimF	Read Replies (1) \| Respond to of 1573697

Asset prices (for various types of assets) have a connection to wealth concentration. Assuming the same total wealth luxury assets will cost more with more wealth concentration. GDP is mostly independent of wealth concentration. Not totally if wealth was somehow extremely equal it might possibly reduce the capability for investment and if it was a steady state condition (rather than an initial condition that can and likely will change) then it would imply that extra work or ingenuity or risk taking wasn't rewarded so you would see less of them and thus less economic growth. At the other extreme you would have the posibility of an indirect effect of social unrest which can reduce economic growth. If its a somewhat steady state condition it would imply a rigid class structure which would reduce the ability to match people with the economic activities that they are most suited to, which would have a negative effect on the economy. And then at really crazy extremes you have the workers and consumers starving, obviously shrinking the economy. But other then those extremes I don't see much net effect (some positive and some negative effects from moving in each direction, but they are likely to be modest, and also at partially cancel each-other out). Distribution of goods will of course be effected by wealth concentration. Without any of it (which implies no income disparity and no difference of political pull over resources as well) you get little in the way of luxury goods (if the very equal level is also a very high level you could get a lot of production of what we see as luxury goods, but they wouldn't be luxury goods in that economy). With a very large amount of it you get more hyper-luxury goods, and less quality non-luxury goods ("middle class goods?"). Also different distributions of wealth and income mean different people have different amounts the goods, which would be the case even if all the goods are the same.