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.
The title of the post is a little misleading. The model presented here does not require many parts of a capitalist system. If you can own stuff and have a free market this model predicts extreme wealth inequality. This happens by pure chance.
The model is not a good argument against capitalism. It can be used as an argument for taxing rich folks and against the “trickle down” idea.