Wealth

Reading Careless People, an exposé of life within Facebook written by a Kiwi, it occurred to me that one potential advantage that the UK, Australia, Canada and New Zealand have over the US is we do not unthinkingly idolise the very rich. Americans sometimes find this confusing: it always irked transplanted American bankers in London that local employees were eager to make a few million quid, but lost interest beyond a certain threshold. Once they had a rectory in the Cotswolds, an Aga, two labradors and a Range Rover it was game over, you win. This is because the US is more of a money/power economy, whereas the Commonwealth countries are to a greater extent prestige economies. We shouldn’t bemoan this, but turn it to our advantage instead. Here’s how. It’s a wealth tax.

There's rich and there's rich. There's a number beyond which stuff starts to get boring. I'm not sure what it is, but it's the point at which you run out of restaurants to frequent and clubs to join and clothes to buy and you start thinking bigger. You start thinking about going to space and colonizing Mars — and exploring the dark depths of the deep blue sea. It is the reason that Elon Musk sold his seven homes and chucked out most of his possessions and torments his staff by sleeping at work. It is also part of the reason that five men are now sadly believed to have died while aboard a missing submarine after a "catastrophic implosion." If we didn’t love to hate the rich, this would have been seen for what it is: a tragedy.

Gstaad Dinner parties are no longer verboten here, so I posed a question to some youngsters my son had over: did any of them feel morally entitled to their privilege? The problem with talking about privilege is that the discussion goes around in circles, original thoughts get lost, and what emerges says more about those conversing than about the subject at hand. Ditto when I posed the question to my son’s friends. There were no straightforward answers. Let’s face it, privilege is so enjoyable that the beneficiaries are mostly seen as undeserving, spoilt lightweights — by the underprivileged, that is. Envy has always been around, as has the urge to take away wealth from those not seen as having earned it.

Not all inventions change the world. But some do — and they do it by greatly lowering the cost of a fundamental economic input. This inevitably causes an economic revolution that brings about a new political and social order by opening previously impossible economic opportunities,  creating vast new wealth in the process. We are in the middle of such a revolution today, thanks to the microprocessor, which first came to market in 1972 and really took off with the introduction of the personal computer in the early 1980s. The microprocessor, a dirt-cheap computer on a chip, hugely reduced the cost of storing, retrieving and manipulating information. Computing power that cost $1,000 in the 1950s today costs a fraction of a cent.