Tito's Blog

Random thoughts on entrepreneurship,
venture capital, private equity,
world finance and global economy

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Nov
13th
Fri
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You can become wealthy by creating wealth or by appropriating wealth created by other people. When the appropriation of the wealth of others is illegal it is called theft or fraud. When it is legal, economists call it rent-seeking.
— Very insightful article on rent seeking vs wealth creation by John Kay: FT.com / Columnists / John Kay - Powerful interests are trying to control the market
Tags: economics   market   concentration   rent-seeking   wealth  
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Feb
18th
Wed
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The World Is Spiky

Here’s a great article by Richard Florida on The Altantic on how the recession will reshape the US.

He also links to a previous paper on how our interconnected world has actually increased concentration of economic output, talent and innovation: The World Is Spiky (pdf).

My take is that stronger connections and communication networks increase the impact of power laws and positive feedback loops, thus increasing concentration.

Tags: power law   world   flat   network   innovation   concentration   feedback loop  
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