Distributive Justice & Churn
“Distributive justice isn’t taking from a risk taker who earned honorably, it is keeping his probability of losing it very high.” — Nassim Taleb
We need not keep the probability of losing (hard and honorably) earned money/power/knowledge high; it is naturally high.
Power, wealth and knowledge/wisdom has a strong tendency to accumulate/concentrate. More power/wealth/knowledge in one’s hands means accumulation of more of the same in those hands.
But, in addition they have a natural tendency for churn/flow. They are more susceptible to extreme events than we imagine them to be. Their flow is non-linear, meaning they may accumulate long enough (over years) before disappearing all together in a day.
Politicians, successful businessmen, bureaucrats, academics are incentivized to lower this probability; because once acquired (power/wealth/knowledge) they don’t want to lose control of it. They want to kill churn (Manthan).
Power redistributes itself in in overnight coups/rebellions, companies go bankrupt, the wealthy lose all wealth to a catastrophe, some gain indiscriminately in a catastrophe, the fragile foundations of knowledge .. (academia’s hatred for social media is because it democratizes knowledge; they lose their control on its narrative)
A society’s objective should be to maintain a framework where these natural tendencies (Manthan..) are maintained. Anything we do against these natural traits will only increase the magnitude of the pay-offs (negatively or positively) in case of extreme events. Manthan (churn) is a fundamental trait (of wealth/power/knowledge), you try to manipulate it, it retorts with an exponentially higher consequence.
Inequality in power/wealth/knowledge is better dealt with a decentralized framework than a redistributing framework.
Bail-outs, redistribution through high taxes, large subsidies favoring one group over another — all of these are our actions non-aligned with natural order.