Inequality is a consequence of technological progress and barriers to entry.
Some human activities today have high level of productivity.
A doctor can only serve one patient at a time. Top tier athletes or actors can serve millions of people simultaneously.
Local bar can serve fewer people than Facebook and those who own a local bar will be much poorer than those who own Facebook.
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Another component are barriers to entry.
Some professions are relying on brand power (acting) and others on credentials (surgeons). Anyone can do a job of a janitor, but not everyone can be a highly skilled engineer or surgeon or be highly recognizable name in entertainment.
Some businesses have barriers to entry (economy of scale, networks effects) while others are in fierce competition.
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People who are poor are doing relatively unskilled, low productivity work (service industry professions). People who are wealthy are relying on high productivity and barriers to entry.
Why is Zuckerberg so wealthy? Because Zuckerberg's business can serve billions of people every day directly and has monopoly power due to network effects. Some low level Facebook employee is selling his services to one company which is a low productivity activity (they are not selling anything directly to billions of people, but selling services to one company) and those services can probably be done by millions of people around the world so the barriers to entry are low.
Once you understand this, you will realize that inequality is a structural thing.
Some human activities today have high level of productivity.
A doctor can only serve one patient at a time. Top tier athletes or actors can serve millions of people simultaneously.
Local bar can serve fewer people than Facebook and those who own a local bar will be much poorer than those who own Facebook.
-
Another component are barriers to entry.
Some professions are relying on brand power (acting) and others on credentials (surgeons). Anyone can do a job of a janitor, but not everyone can be a highly skilled engineer or surgeon or be highly recognizable name in entertainment.
Some businesses have barriers to entry (economy of scale, networks effects) while others are in fierce competition.
--
People who are poor are doing relatively unskilled, low productivity work (service industry professions). People who are wealthy are relying on high productivity and barriers to entry.
Why is Zuckerberg so wealthy? Because Zuckerberg's business can serve billions of people every day directly and has monopoly power due to network effects. Some low level Facebook employee is selling his services to one company which is a low productivity activity (they are not selling anything directly to billions of people, but selling services to one company) and those services can probably be done by millions of people around the world so the barriers to entry are low.
Once you understand this, you will realize that inequality is a structural thing.