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Yatit Thakker

The Power Law

Principles2 min read

At first glance, the distribution of wealth seems highly unfair. While the median global income is less than $2 per day, wealthy capitalists like Jeff Bezos are worth over $200 billion. There's plenty of articles that describe just how much money that is. It seems unfair, yet it's a naturally occurring phenomenon of not just capitalism, but several naturally occurring systems.

The Apex Predator and the Scavenger

In natural ecosystems, there's the phenomenon of an apex predator, a species that is the most successful and adaptable at adjusting to its environment. How successful do apex predators become? Most of the time, in environments like the ocean, apex predators like sharks and whales form a small handful of the top echelon of fish. Although few in quantity, they cover an enormous area and eat massive amounts of prey. Compared to the size of smaller fish, they eat multiple times their body weight in food.

This is a natural way that ecosystems balance out. It happens on land, too. Although humans may be apex predators above land, there are more ants in the world by volume than there are people. Although not apex predators, ants are exceptionally well adapted in the insect kingdom. They are able to consume and scavenge their way through Darwin's laws of natural selection while maintaining thriving colonies throughout the world.

The Advanced Primate

Humans, meanwhile, have developed their own systems of governance and operation. Capitalism seems to be a universal system that has caught on across the globe in the last few decades. Although an imperfect system, it has started to govern several aspects of modern life through the use of currency backed by the government of each country. These currencies create layers of value, where individuals at each layer try to amass as much of this currency as possible for themselves and their families.

Meanwhile, the governments backing these currencies impose certain rules to ensure that this amassing of wealth occurs in a fair and balanced way. Ideally, these rules are also enforced in a fair and balanced way, even though this isn't always the case. Yet, the Power Law still rules even within society. Wealth gets massively accumulated at the top of the global capitalism ladder. Meanwhile, the distribution in the bottom half of the world involves surviving on 2 USD per day. It's not that capitalism is imperfect. It's more so that the power law in nature is just very difficult to overcome. The laws of mankind cannot overtake the laws of nature. Life will continue to be a struggle for survival. It's the way it has always been. It's the way nature intended for it to be.

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