Wealth inequality seems like the only outcome in a system where capital gains are taxed less than labor

Revolution should be the result of wealth inequality.

Just read Henry George. Land value taxes, etc. He had it all figured out 100 years ago. The fact that we still try to determine elaborate methods for building equality is absurd. The correct answers, and methodology is a variable that is already a known, and backed by piles of empirical evidence.

He adamantly argued two things:

Land value tax above all else.
Labor must not be considered capital.

These 2 concepts are core to the economic foundation, of building a extremely dynamic society (huge middle class, open financial systems, urbanism etc.)

https://progressandpoverty.substack.com/p/the-curious-case-of-qingdao-chinas

Or for those very curious...

https://www.astralcodexten.com/p/does-georgism-work-is-land-really

The other issue is large stagnant piles of cash. Money not circulating through the system is useless.
is that useful in a world with speculation and day trading? genuine question.
- It destroys incentive for speculative behavior on land. LVT increases density, reduces infrastructure costs, vastly increases distribution of housing. It increases the incentive to use the property and or improve property on the land. Property, houses, buildings etc are not taxed, the land below it is. It is extremely pro environmental, even pro business. It's implementation is simple. It's pro the 99 percent and harms owners of large parking lots in urban dense areas (the poorest use of land and essentially a speculative hold).
  Norway used economic concepts from Henry George to utilize their vast carbon resources for the benefit of the many.
  It takes the harmful effects of capitalism and turn it on its head. It is probably exactly what the USA craves. A decentralized bottom up movement in the USA pushing for these kinds of pro human, environmental economic policies could easily overwhelm the current political, tech bro corporatism elements in the USA.
  Henry George absolutely solved the issue of poverty and inequality from a incentives/ structural economic standpoint. It is only the will of the 99 percent that is lacking. The 1 percent can be overthrown easily, in a quick and bold flick of the hand.

It’s worse than that. Wealth inequality is inevitable in any system that allows private ownership of the means of production. Marx wrote about this in great detail.

I've heard it said that as long as investment returns average higher than wage increases, society will continue to get worse.

Make housing prices increases an investment and you give the rich a force multiplier.

Wealth inequality is in the inevitable outcome of a market system. It's mathematically baked in. A tax system like this just makes it faster.

This is basically the central thesis of world famous economist Thomas Piketty.

Inequality inevitably worsens if the rate on capital exceeds the rate on labour. That is, when society rewards simply owning capital and wealth more than working.

r > g

Even if you tax capital gain more than working normally its easy to create inequality. If you make 1m a year with 90% tax you still end up with 100k a year. That's still more than most people have. As long as we allow companys andsindividuals to exploit the workforce and extract value from it there will be inequality. If every worker you hired gives you just 1k after tax per year and you have 100 workers you still make more money than every single worker whose money you stole.

Read Marx

And after that, Kropotkin
- I've not read much Kropotkin, I started his book on the French Rev but got pulled into other stuff. Need to get back to it.
  I am a huge fan of Malatesta though. Why don't more anarchists recommend him?

A system crash is usually what happens. Exciting history book times.

The crash may take a thousand years or more tho

The reality is that a system can work just fine crushing orphans for fuel. That doesn't make it a system worth having.
- Return to Aztec where sacrifices had structure and were scholar priest approved (probably)
I somt think it would take a thousand years for modern society. As complexity increases so does the risk for cascading failure

the rich are screwing the worker over

That is why we need robot overlords everyone is equal if we're all slaves to our robot overlords!

Almost as if by design… 🤔

Yeah I always found the won't invest to be bs. its like people don't stop working because they pay taxes on it and actually its the more likely scenario with high taxes. Having the capital gains lower over time to encourage holding investments is sorta good but it need not be lower than income tax. Also a transaction tax would curtail daytrading nicely.