AI summary · arXiv: 2301.00091v1 · econ.TH
Wealth Redistribution and Mutual Aid: Comparison using Equivalent/Nonequivalent Exchange Models of Econophysics
The essentials
- Historian Sheidel has observed that economic inequality decreases during times of wars, revolutions, collapse of states, and epidemics
- Current crises such as COVID-19 pandemic, war in Ukraine, and natural disasters caused by global warming may accelerate the arrival of a new mode of exchange and facilitate the transition from a capitalist economy to alternatives suggested by Graeber and Karatani
- This study compares an equivalent market exchange with redistribution based on power centers and a nonequivalent exchange with mutual aid using Polanyi, Graeber, and Karatani modes of exchange
- The simulations indicate that the evaluation parameter of total exchange divided by Gini index can be expressed by the same saturated curvilinear approximate equation using transfer rate and time period of redistribution along with surplus contribution rate of wealthy individuals and saving rate
- A nonequivalent exchange without return obligation is preferred due to coercion associated with taxes and independence based on morality of mutual aid. This aligns with Graeber's baseline communism and Karatani's mode of exchange D while also having implications for alternatives to capitalist economy.
- Limitations include setting transfer rates uniformly across all agents in equivalent market exchanges model (EX) or setting surplus contribution rates uniformly across all agents in nonequivalent exchanges model (NX)
- Future analytical studies should consider different transfer rates based on social security programs or varying surplus contribution rates according to ability/needs. Empirical studies are needed to examine real-world evidence.
- Future studies could consider redistribution/mutual aid of interest/profit-loss for wealthy/poor individuals using non-conservative models such as those introduced by Kato in comparison of Islamic and capitalist economies.
- Other models such as potential function-based probability distributions for income/expenditure or population dynamics-based time developments for growth/inequality could be explored. Non-conservative models must consider resource limits' constraints however eventually returning to a conservative model primarily based on exchange.
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