Could a tiny tax create a more stable global economy? One expert thinks so, drawing a surprising parallel between chemistry and finance.
Leveling the Playing Field: Inspired by Quadratic Funding
The idea starts with “quadratic funding,” a concept where some money is returned to philanthropists or companies based on a mathematical formula. While this can be viewed as a psychological motivator, this expert suggests a broader interpretation: using this principle to redistribute wealth more evenly.
The “Buffer” Solution: A Tiny Tax, Big Impact
The core idea is inspired by chemical buffers – substances that resist change. Think of mixing a little blue food coloring into yellow water; the color barely changes because the buffer resists it. Similarly, a global economic buffer could resist major economic swings.
This would involve a tiny percentage – say, 0.001% – of every transaction going into a global pool, then redistributed to those who need it. This sounds like a tax, but the percentage is so small that even high earners would barely notice the loss. In fact, if they had a bad day, the redistribution would partially offset their losses.
Addressing Concerns: Laziness and Fairness
Some might argue this rewards laziness, but the redistribution would be small enough to prevent significant impact. It’s designed to smooth out economic fluctuations, not to drastically alter individual earnings.
Building a Global Safety Net: The Role of AI
The expert proposes managing this redistribution using an AI system on a blockchain, creating a global trust fund that could significantly improve living conditions worldwide. While stabilizing global earnings would take a long time, this approach offers a chance to allocate resources fairly across the planet, rather than favoring specific countries.
