One of the frequently asked questions is can anyone become rich. This, I think, is a definitely know. The logic goes that to be rich one must have sufficient assets or earn sufficient assets substantially greater (being as little as 10%, as an example) than the average person. If anyone can become rich then everyone can become rich. But if everyone is rich, then everyone earns at least 10% more than the average. That obviously can't be true.
So, this leads to the question of how many people can be rich? If it's as simple as substantially more than the average, one might at first think that by definition some value close to but less than 50% could fit the bill. The problem is the question of inflation. If enough people earn a similar amount of income or have similar amounts of valued assets, then when it comes time to buy things they will invariably compete against each other to acquire various limited things. Ergo, prices will rise, so they will only have a buying power advantage over the average person but not the group of "rich" people around them. So, it's insufficient to merely set a percentage rate above the average because many people could pool together without much difference in actually buying power, and that's more akin to being middle class, not rich.
This is about as far as I've gotten in my thinking on the subject. What are your thoughts? Is there a clear limit on the number of rich people? At what point does someone qualify as middle class vs rich? Is the idea of becoming rich part of what inevitably causes investment bubbles that cause a lot of economic harm? Or can a substantial amount (say 30%+) of people diverse in their enterprises to be rich? What aspect of a potential future of near ubiquitous automation, if anything, play into this?
I'm very curious if anyone knows of any substantial discussion, simulation, etc that tries to cover this.
So, this leads to the question of how many people can be rich? If it's as simple as substantially more than the average, one might at first think that by definition some value close to but less than 50% could fit the bill. The problem is the question of inflation. If enough people earn a similar amount of income or have similar amounts of valued assets, then when it comes time to buy things they will invariably compete against each other to acquire various limited things. Ergo, prices will rise, so they will only have a buying power advantage over the average person but not the group of "rich" people around them. So, it's insufficient to merely set a percentage rate above the average because many people could pool together without much difference in actually buying power, and that's more akin to being middle class, not rich.
This is about as far as I've gotten in my thinking on the subject. What are your thoughts? Is there a clear limit on the number of rich people? At what point does someone qualify as middle class vs rich? Is the idea of becoming rich part of what inevitably causes investment bubbles that cause a lot of economic harm? Or can a substantial amount (say 30%+) of people diverse in their enterprises to be rich? What aspect of a potential future of near ubiquitous automation, if anything, play into this?
I'm very curious if anyone knows of any substantial discussion, simulation, etc that tries to cover this.