Make Accounting Systems Fair

YAML Category

Wealth inequality actually is partly a result of the way accounting system works with respect to dividing of company shares and taxes. The founders usually get the lion's share, while others get disproportionally small fraction of the returns on investment, and that is the result of how accounting with respect to stocks work.

Luckily, what accounting system we use, and how do we calculate the percentage of dividends, is actually subject to the legal agreements, that we define. Therefore, when searching for optimal distribution of wealth, we should take a look at what optimal accounting system should be, and redefine that, introducing new norms of fairness to contributors.

Of course, the counter-argument to that may be, that if you skew the towards the workers, then the founders would be not sufficiently motivated to start the enterprises (these days they are used to this hefty reward.) However, the answer to that may be, that human psychology is not necessarily tied to monetary rewards -- people can work for impact, when they trust in fairness and adequate insurance. For example, when they trust that the others meaning good to them, and won't try to take the credit for them, and instead, seek for fairest evaluation of everyone's contribution, then they may feel safe enough to go for impact.

In the case when the impact is valued, we may find, that everyone will want to record everything, to be able to prove their contributions, and that isn't bad. The humanity's storage capabilities are exploding, and if we record every conversation, and every interaction, that will make it easier to not lose good representation of people, and who every of them really is, letting more of their thoughts and ideas and good helpful deeds survive.

Details of what the "Fair" accounting system should be like, are beyond the scope of this idea. However, one specific accounting system that I presented before, is the "Infinity Equity Model" (video), uses generative stock model, where that dividends are highly proportional to the measurable contributions.

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Probably the single reason for wealth inequality, is how we account.