JERRY POURNELLE on spreading the wealth. “Pure capitalism leads to business cycles, in which the low point is generally better (in terms of standard of living) than Socialism (and certainly preferable to Communism, if only because the low points in a business cycle are considerably shorter than the reign of the bureaucrats in either Socialist or Communist states, even if the Communism has a human face, which it seldom does). . . . One does wonder whether the efficiency of having a few very large financial institutions outweighs the cost of the disasters that ensue when a Black Swan appears; whether it might not be better to have, instead of one institution so large that it justifies paying its top executives $100 million a year, one hundred such institutions paying executives $1 million a year? Certainly this would be less efficient. The highs would not be as high. But would the lows be as low? Why must there be institutions so large that they cannot be permitted to fail, and must be rescued by the common purse?”
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