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Cake day: September 4th, 2023

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  • People who make money by investing. In the USA, the top 1% earn their income through investments, usually the purchase and sale of stocks. These are not taxed the same as regular income because they made the argument that you can’t really tax unrealized gains on investments that are sold, and it takes a while for the gains to actually materialize. Also, they tend to store their money, their liquid assets, in countries with looser tax laws, called tax havens. Much of their net worths are tied up in investments. Businesses, homes, art, classic vehicles, precious metals futures, oil futures, boats, etc.

    Assessing the value of all of that is a chore, and they also pay lobbyists to keep the IRS defanged so that they don’t have the resources needed to go after the 1%. And don’t get me started on how much more speculative the stock market has become. Investors buy stocks, not on the expected dividends they’ll receive as a share of the profits of the business, but on their ability to flip the stock and sell it at a higher price to another investor, who is only buying because they anticipate flipping the stock. It’s like if a whole neighborhood of single family homes gets bought up buy a few house flippers, who make renovations, then put the houses up for sale, and sell to new flippers, who are only buying so they can make further renovations, increasing the value of the property again to sell to yet another flipper, ad nauseam.



  • So, more like a sortition system, like how most Western courts select people for jury duty. Now that I think about it, it probably could work. We have wonders of technology that were once the realm of science fiction. These technologies could be leveraged positively in a communist system, I believe. AI in particular could solve things like the Numbers Problem. In a moneyless society, resources are allocated according to what is most necessary. I once watched a video where a problem was asked of the viewer. The scenario is as follows:

    You are now the leader of a communist country. All markets and prices and money have been abolished. You want to build a train between City A and City B. There is a mountain between the two cities. You have two options. Option 1: Build a tunnel through the mountain, and Option 2: Build the track around the mountain.

    1 will require less steel, but will take more manpower, as you will need more engineers to design and construct the tunnel.

    Option 2 will require less manpower, but far more steel. That steel may be needed for other things, like appliances, medical equipment, homes and hospitals.

    So, how do you prioritize resources? How do you know what your fellow citizens value more as a society?

    You could do a survey, but then you run into the Numbers Problem. Your country has a lot of people. That’s a lot of survey responses. You’ll need nearly all of the available manpower in your country to sort them all. But with AI, that might not be necessary. The algorithm could collect all the responses and then output solutions to resource allocation based on those responses. To do this would require a massive surveillance network, though. People would no longer have much in the way of privacy.