The rich keep getting richer. This itself isn’t a problem. It’s just that if the wealth was distributed more evenly society would be a better place. There is one simple way to achieve this. By paying people according to how much money the company made in the past x days (where x is the number of days between payments).
The algorithm used would take a lot of designing but once made it could be used for all companies. It would be appropriate for any companies.
Reality is fluid. Many of our systems are rigid and therefore sub-optimal.It’s odd that people don’t really understand this. Suppose I say “worker A should be paid $19,435.24 this year” most people would react “that’s an oddly specific number, why not $19,000.00?”. Yet if I said “This large rock has a mass of 19,435.24kg” it would be met without the raising of eyebrows. It would be strange indeed if the mass of every rock I found was divisible by $1000.00.
It’s as though people are saying that I need justification for having a number which strays away from numbers with an accuracy of more than 2 or so points. This accuracy is their own system and doesn’t reflect reality. People basically believe that if you have a number with few trailing zeros like 19,435.24 then you need justification from straying from the solid, proven value of of 19,000.00. But that’s nonsense. 19000 in base 2 is 100101000111000. There is nothing special about numbers that have lots of trailing zeros in base 10. The number of trailing zeros a number has in base 10 has no impact on how much a worker should be paid. They’re not linked in meaningful way so to attack someone for suggesting a number with no trailing 0’s in base 10 is meaningless. There would be tempted to say “buy you cannot notice a difference between $19,000.00 and $19,435.24 and I would say “I can notice the difference between any numbers that are not equal because the just-noticeable difference does not exist“.
It is known that it makes sense to pay people more if the company is more successful since they contributed to it and there is more money available to hire better people. There should be an algorithm that automatically calculates the ideal amount to pay people. I don’t know exactly how that algorithm would look, but I know some of its properties.
First, it wouldn’t take the form of x + …. there would be no addition whatsoever in the calculation. It would all be based on multiplication and exponentiation. There would be no base rate. Reality is fluid, no part of it is rigid, everything is vibrating, and our calculations must reflect that.
Secondly, as input, it would only require the important of that persons job and the amount of profit the company made that year. As the importance of the job increases their salary increases and the dependency of their salary on the profits of the company also increases. So those at the top would lose more of their salary (as a proportion) than those lower down if the company showed a loss that year.
With the automation of many low skilled jobs, it’s inevitable that the rich will get richer. The skill level of jobs that can be automated will steadily increase as AI improves. First it was the people on assembly line. Next it will be stock brokers. Then it will be the programmers who made those stock buying algorithms. This will be the end of capitalism. People will revolt. When the top 0.1% controls 99.9% of the wealth a revolt will trigger.
I don’t know when or how this will happen, but it will happen. It is just the nature of capitalism. If you take any normal looking system and extend it out for a long time, its ultimate fate will always appear strange. Some say the fate of this universe is just dead. Entropy will increase so much that it will become impossible to support life. Other scientists say that the universe goes in one big cycle. After the big bang is the big crunch.