I think your basic problem is that money tends to concentrate itself. I can talk about the oldest city in the world or point out that if you are very good at replicating something, it will lead to lots of cash. This is not bad, higher levels of technology require ever more concentrated amounts of cash to develop and reproduce them.
What I think you need to make it work is 'limited redistrubtion.' Better still, instead of all the cash, give them a training......

Well the current crisis is contributed to sub-prime mortgages and more importantly credit default swaps. If you want to look at what caused these to be come problems then you don't have to look any further than the Federal Reserve. They have way to much power to delegate what our currency does.

Our debt driven fiat money system is the other major cause of all this. There was to much credit in the market for the market to keep up with it. Too much credit extended out to people that couldn't pay the credit back. Our current monetary policy is flawed.

Another problem is our governments way of spending money. They just spend, spend, spend, like money grows on trees. Economies go up and they go down. Doesn't matter what the economic model is that is part of economics. You have good times and you have bad times.

If the free market was truly free and the politicians stayed out of the corporations pockets this would just be another recession. So that brings us down to the whole problem which is the people that we delegate power to - to pass laws decided to delegate power to a private entity to coin our money and in turn sell it to us with interest.

Redistribution happens all the time, the difference is do you want to let people that have the money decide what to do with it or do you want to let the government decide what to do with it. I'd rather let the people that earned the money, in most cases, distribute the money because they know the best places to put it.

In short recessions happen in any economic model and there are lots of contributing factors to this and the current crisis is contributed to sub-prime mortgages and credit defaults swaps or better yet too much of an abundance of credit.

It not only is NOT a fraud, it is vastly understated in even the most enthusiastic theories. The reality is that a very few creative, intelligent people create more wealth than the rest of the population (99+%) combined.

That does not mean that most rich people are among the creators of wealth, or that wealth should not be shared, but that the incredibly easy, comfortable lives we live in this time period are due to a very small number of people and their innovations.

Communism was the greatest economic lie ever told.


[edit on 10-10-2008 by Grumble]