Economic dilemma

[biostud]

Imagine you live in a small community 8-10 households and everybody knows each others income which of the following scenarios would you prefer?

 

[IronWing]

I make $100 and rest of ya better have my damn sammich ready.

 

[[DHT]Osiris]

Not sure what the intent of the setup is but... It's logically better for everyone to make the same amount, but humans aren't logical so stratification is likely required.

 

[biostud]

Not sure what the intent of the setup is but... It's logically better for everyone to make the same amount, but humans aren't logical so stratification is likely required.

Logically it would be best if you choose the $24/$28 as everyone would have the best buying power compared to the surrounding society, but everyone including you, would know you earned the least and many would not feel comfortable with that.

Some prefer to be the "richest" guy in town, even if it means you earn less overall and some prefer equality over individual or collective wealth.

 

[biostud]

I make $100 and rest of ya better have my damn sammich ready.

Just multiply the numbers with six and answer.

 

[lxskllr]

I'll go with $18, but those other assholes better do their part to keep production up.

 

[brianmanahan]

in the land of the blind, the one-eyed man is king

 

[Greenman]

I'd rather develop a business no one else has and not tell them how much I make.

 

[BurnItDwn]

Assumig all costs are the same, i would prefer to make more money. Doesnt matter how much money the other people make.
24 is more than 20 which is more than 18.

The people who make more can pay more in taxes to pay a bigger share for things like education, healthcare, and defence, but everybody makes enough to contribute and should have a decent quality of life.

 

[Ken g6]

I'm not sure it's quite that simple. A small community means exclusive, which means our income may set the prices of the local housing. So the question becomes how much am I spending on prices set locally (house, mortgage, insurance, property tax) vs. prices set further afield (everything else). I think the ideal scenario starts with scenario 1 when I buy the house, but then transitions to scenario 3. (Assuming no external inflation.)

 

[biostud]

Assumig all costs are the same, i would prefer to make more money. Doesnt matter how much money the other people make.
24 is more than 20 which is more than 18.

The people who make more can pay more in taxes to pay a bigger share for things like education, healthcare, and defence, but everybody makes enough to contribute and should have a decent quality of life.

And that is the most rational.

Obviously, this is not a dilemma about pricing, taxes housing etc. but rather how you feel about economic imbalance and envy/pride.

 

[dank69]

It is that simple. It's a mental exercise to highlight how irrational people can be. It's how you end up with people speculating how an extra $4/hr for 8-10 households might have any effect on local housing prices to distract them from the fact that they would rather have less income than anyone else have more income than they do.

 

[nakedfrog]

I'd rather develop a business no one else has and not tell them how much I make.

Why do you care if they know how much you make?

 

[Fenixgoon]

I'm not sure. The 24-28 scenario is the best for everyone overall.

I guess the question is how much would I care that I knew my neighbors made more than I did?
I'd like to think that as long as I can do the things I want to do, I wouldn't worry too much. But I can't guarantee that

 

[Chaotic42]

24-28 seems best for everyone and I don't care what my neighbors think about my income.

 

[KLin]

4. Time to move

 

[nakedfrog]

4. Time to move

Well, there goes the neighborhood.

 

[KLin]

I meant move out. lol

 

[KLin]

Also

 

[[DHT]Osiris]

It is that simple. It's a mental exercise to highlight how irrational people can be. It's how you end up with people speculating how an extra $4/hr for 8-10 households might have any effect on local housing prices to distract them from the fact that they would rather have less income than anyone else have more income than they do.

In an isolated system though, with 24-28 the inevitable result is that everything costs what's appropriate for 28 (because capitalism demands that you squeeze every drop of blood from the stone) and the 24 is gonna be lacking. Everyone on 18 means 18 is the most capitalism has to work with, and in all likelihood in this isolated system everyone's 'fun budget' is the same, so there's only so much to leech.

I don't care if I'm making 24 if my buying power is lower than if it was 18.

 

[nakedfrog]

I meant move out. lol

 

[Chaotic42]

In an isolated system though, with 24-28 the inevitable result is that everything costs what's appropriate for 28 (because capitalism demands that you squeeze every drop of blood from the stone) and the 24 is gonna be lacking. Everyone on 18 means 18 is the most capitalism has to work with, and in all likelihood in this isolated system everyone's 'fun budget' is the same, so there's only so much to leech.

I don't care if I'm making 24 if my buying power is lower than if it was 18.

Yeah, that was my thinking too, but there wasn't any mention of the rest of society. If our town is the entire economy, then I'd choose to make more than everyone and swim around in my money vault.

 

[dank69]

In an isolated system though, with 24-28 the inevitable result is that everything costs what's appropriate for 28 (because capitalism demands that you squeeze every drop of blood from the stone) and the 24 is gonna be lacking. Everyone on 18 means 18 is the most capitalism has to work with, and in all likelihood in this isolated system everyone's 'fun budget' is the same, so there's only so much to leech.

I don't care if I'm making 24 if my buying power is lower than if it was 18.

But this isn't an isolated system.

 

[[DHT]Osiris]

But this isn't an isolated system.

Then why are those my only financial options? can I work double shifts and make 48 while everyone else is making 28? Or just get a better job than everyone else making 18 so everything stays nice and cheap while i make out like a bandit?

 

[nakedfrog]

Fuckin' nerds can't ever just stick to the presented options in a hypothetical scenario