I wish GPT4 had never happened

We were all fine with having a bunch of pretty poor people around us (let alone other countries where people live horrible lives). Why should anyone care white collar people are going to get hurt? Who said we have enough power/motivation to meaningfully revolt?

Why haven't the poor revolted already?

I hope you're right but I don't think its a given this will happen.

>With either tax, the economic system that consists of you and your employer is being robbed

Except differences in tax rates will have significant impact on what type of income people want to earn. If personal income is taxed lower than capital, then people will want to increase their income through work.

If personal income is taxed higher than capital, people are incentivized to build more machines than the economy needs and this will put people out of work.

>Capitalism is not an economic system, it is a description of fundamental economics

Silvio Gesell has developed an economic system inspired by Darwin. I don't mean social Darwinism, I mean that he deconstructs the economy down to self preservation and group preservation instincts which are biological necessities.

Self preservation is necessary to survive. A biological organism that does not self preserve will be selected out. This means that self preservation instincts represent egoism.

You might now say that this is the end, capitalism has won, except there is also group preservation.

Group preservation requires self preservation as a prerequisite. If you cannot meaningfully self preserve, you will most likely contribute nothing to group preservation as there aren't many situations where dying outweighs the cost of raising a member of the group.

This means self preservation instincts play a significant role all the way until they start threatening group preservation.

An organism that exclusively specializes in self preservation would always be a lone wolf with no socialization. The problem with this theory is that it would imply subsistence which is the opposite of capitalism. In other words, capitalism cannot be the result of simple egoism and self preservation because people would simply leave the capitalist society for the sake of self preservation if it were to become too stressful.

Thus there must be a significant group preservation instinct in humans and they have been evolved to survive in groups. In other words, capitalism has to leverage group preservation instincts somehow and therefore it is just another flavor of socialism or communism except in favour of people with capital.

Now, you can take it too far and entirely rely on group preservation instincts like communists claim but that doesn't work in practice either as self preservation overrides group preservation. Only people who have their basic needs met can engage in altruism.

Thus you can't expect a society consisting exclusively of altruists or egoists. Instead you would expect evolution to hit just the right balance between the two and that would imply the absence of both capitalism and socialism. It means both are an aberration that cannot be explained biologically.

Yes, that would imply that people can choose to participate in a market economy but it doesn't mean they have to and market economies don't have to be capitalist.

>Capitalism is not an economic system, it is a description of fundamental economics.

Theoretical economists have no concept of capitalism except maybe Keynes. In classical and neo classic economic theory there is no such thing as "capitalism". In theory it doesn't exist. There is a market economy with zero coercion and it does not intrinsically favor capital. You can't get richer through unfair means or corruption in these models either.

The gaps between the model and the real world are then filled with dogma and ideology. For example, you can just say that a positive return on capital represents a voluntary high time preference even if the return is higher than what would bring the economy into equilibrium.

The real world starts exhibiting cycles that make no sense in the model, meh. Let's claim capitalism is a constant of the universe even though biological dynamics imply the opposite.

Mayor Unterguggenberger introduced a demurrage currency in Wörgl during the great depression before WW2. He "printed" 10000 shilling worth of Arbeitsbestätigungsscheine (work confirmation coupons). The coupons are valid until a certain period, then you have buy a stamp and glue it on. This approximates a -5% interest rate. People didn't hoard the coupons and the town accepted them for tax payments. The town was out of debt within a year and unemployment has shrunk by double digit percentages. The depression was effectively over and all it took was the equivalent of food stamps/unemployment benefits except transferrable between businesses and consumers with a demurrage fee.

The system doesn't have to be adopted by every business or citizen. For instance, 10% of unemployment benefits could be paid out as a demurrage currency with tax acceptance and you would see large scale welfare benefits with almost no burden on the general population. The only burden of this system is juggling two different currencies and an insignificant 5% annual fee on the issued demurrage money supply. If pay out 10% of unemployment benefits or 15 billion dollars it would only cost 750 million dollars in the liquidity fee and that is assuming the money doesn't immediately go back to the government for tax payments at which point the costs keep shrinking and shrinking.

Demurrage currencies face significant legal problems that hinder their adoption.

It isn't impossible but who in their right mind would give 10 million dollars in funding to start a bank to end capitalism?