Alex Imas

What should they be doing right now?

If you're talking to Modi right now, what do you say?

Sorry, you're saying if the developing countries have some savings in the developed world, that will be enough to produce a lot of surplus?

They will now be able to consume a lot using their savings.

This is actually, I think, a crucial point.

We were talking earlier about why the Rockefellers or whatever the world, why their descendants don't control everything.

If our argument about the selection of these kind of greedy optimizers hold.

And one argument is just that it's like very hard to index the economy.

And maybe they would have just decided to have their heirs index the economy and have it grow at the rate of economic... Have their wealth grow at the rate of economic growth and they would be, you know, trillionaires.

Their heirs would be trillionaires by now.

But...

Before index funds existed, it's just very hard to just get a representation.

Just a very small fraction of the economy going back 100 years accounts for a majority of the value created now.

And if you miss those particular things, you would have basically... Your wealth would have just kind of stagnated.

And maybe there was a brief golden window from the creation of index funds up until, I don't know, five years ago, where actually you could index the economy and you could have your wealth grow at the rate the economy grows.

But...

Now that we're in this world with very concentrated returns, especially to private companies, which is capital that is, as we were making a point in our blog post, the average person has disproportionately less access to, as opposed to, you know, most of their capital is like having a random house, at least in the US, or a part of a house.

Yeah, which is, as we were saying, is sort of unique, a capital that is uniquely ill-suited to be complementary to the production of AI or the serving of AI or to robots.

Or the kinds of goods that the rich will bid up the prices of.

Exactly, right?