Very little of the economy belongs to people who were "born wealthy." Most rich people these days come from upper middle class, cognitive elite families or small business owners, not generational wealth.
The most important number is that 50% of consumer spending is attributable to the top 10%. That's Google engineers driving up the price of everything from housing, to cars, to Disney World tickets. The income levels of this group has grown several times faster since 1970 than the median income. That directly hurts the middle class, which is out-competed for the same scarce resources.
You just claimed that AI will eliminate the cognitive elite.
All that leaves is born wealthy and small business owners. The small business owners aren't going to last long if their only potential customers are the generationally wealthy and the working class.
> You just claimed that AI will eliminate the cognitive elite
I took your statement as referring to the current situation, not the future.
> All that leaves is born wealthy and small business owners.
What do you mean by that precisely? If the purchasing power of the cognitive elite collapses, it will make everything more affordable for everyone else. The generationally wealthy aren’t competing with you for housing in the Maryland suburbs.
> Most rich people these days come from upper middle class, cognitive elite families or small business owners, not generational wealth.
That group is called "born wealthy". They are not smarter or more intelligent, they are born with advantages.
> The most important number is that 50% of consumer spending is attributable to the top 10%. That's Google engineers driving up the price of everything from housing, to cars, to Disney World tickets.
No, that is K shaped economy whose rules were designed to favor the richest for multiple decades.
> That group is called "born wealthy". They are not smarter or more intelligent, they are born with advantages
They’re much smarter, more intelligent, more conscientious, have more impulse control, etc.
> No, that is K shaped economy
The “K-shaped economy” is just a label for what happens in a market with scarcity when the 90th percentile income rises twice as fast as the median income over 50 years: https://www.census.gov/content/dam/Census/library/stories/20.... There’s no “rules” that cause it. It’s just supply and demand.
> They’re much smarter, more intelligent, more conscientious, have more impulse control, etc.
You made that up.
And yes, K-shaped economy is the label for what I described. And then I described what caused it last few decades. And no, it was not caused by "supply and demand". It was caused by policy changes.
The most important number is that 50% of consumer spending is attributable to the top 10%. That's Google engineers driving up the price of everything from housing, to cars, to Disney World tickets. The income levels of this group has grown several times faster since 1970 than the median income. That directly hurts the middle class, which is out-competed for the same scarce resources.