This is interesting and important what you wrote. It is quite  a fact, that no 
known political system was ever able to solve the problem of inequality.. What 
needs perhaps be done is to take the best from every known system and see how 
it could be incorporated in a new model of society based on libertarian ideals.
Anna


----- Original Message ----- 
  From: Deus Ex Machina 
  To: [email protected] 
  Sent: Wednesday, November 16, 2005 8:40 PM
  Subject: Re: vast inequality Re: [Libertarian] Magical Capitalism?


  Urmas J??rve [EMAIL PROTECTED] wrote:
  >Under a truly free economic system capital difference could
  >actually be smaller since there would not be any incentives created by the 
state to not
  >have people working. 

  this is actually not true. the degree of inequality is related to the
  network effects and the diferentiation between competiting choices.

  for example links between web sites represents what people consider
  worth pointing to. this is a power law distribution, ie very very
  unequal. even though there might be only minor differences between the
  perceived value of choices.

  small differentiation amongst choices are amplified by the network effects
  of society and lead to vast difference of unequal outcomes.

  there is a very strong relationship between inequality of outcome and
  freedom. the greatest inequality occurs under the maximum freedom.

  the entire point of socialism is to prevent that inequality of outcome.

  where socialism becomes mandatory force is inevitable, where socialism
  is voluntary, inequality eventually undermines or tears the structure apart.

  Vic





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