Re: Income distribution [and growth]

["John O'Donnell" <jackodonnell@xxxxxxx>]

"John M. Legge" wrote:

> Harry,
>
> the nature of any system incorporating positive feedback is to concentrate
> wealth and power, whether you are studying elephant seals or human
> societies.  In a market economy the accrual of wealth is particularly
> obvious, and since at least the time of Adam Smith "reform" has come to mean
> removing barriers to the unlimited accrual of individual wealth.

John, you must have a very peculiar notion of "feedback." Feedback has nothing
whatever to do with concentration of wealth. It has solely to do with obtaining
the information needed to determine the next control action to take, either by
automatic response like control of room temperature by a thermostat or manually
like your control of your car's speed in response to the indication of speed on
the speedometer.

In economics, if economists were ever to understand the concept, it would be
changes made to a control variable such as the money supply in response to
changes in the interbank interest rate or some arbitrary measure of money supply
or, preferably, to the value of the currency. However, in their ignorance of the
concept, economists label the measure used to determine the control action [i.e.
-- the interbank interest rate or the arbitrary measure of money supply] as the
control and then completely lose sight of the actual control, the money supply
itself.

<<SNIP>>

   -- jbod

  Tax Privilege, Not People
___________________________________________________
Come visit and see a new economic perspective --
       http://www.geocities.com/CapitolHill/1067
           Comments/arguments welcome.
.