The distribution of our wealth
Try to describe our problem:
Those who own wealth benefit from digital change.
1.) Return on capital is higher than return on labour
2.) Polarization of income and wealth.
Try to find new solutions:
How do we counter this growing inequality?
1. analysis/ attempts to develop solutions:
Technological change has made it possible for machines and software to support us in our work and thus increase our productivity. Prosperity and productivity in Germany today are much higher than they used to be, meaning that the country is generating much more economic power than it did 50 years ago. At the same time, however, the share of total economic output attributable to employees is decreasing.
The share of capital, on the other hand, is increasing.
This shift is not surprising:
The size and value of the entire capital stock is steadily increasing, while the number of employees remains the same or is shrinking.
French economist Thomas Piketty explains this by saying that capital generates a higher return than work.
Solution-1: Why doesn’t Google pay us a usage fee?
Source: Zeit-Online: Return on capital & labour
OUTLOOK:
AI & Blockchain can aggravate the problems