Economic inequality is a mathematical certainty of money rather than a failure of government policy.
April 26, 2026
Original Paper
Mechanisms of Inequality: A Mathematical Architecture for Structural Containment
SSRN · 6644058
The Takeaway
Capital accumulation naturally follows power-law distributions that concentrate wealth at the top. Many people believe that inequality can be solved through better taxes or fairer institutions. This research suggests that the fundamental math of how money compounds makes extreme concentration inevitable in any traditional currency system. The engine of inequality is built into the structure of capital itself. Only a radical shift to a purpose-bounded currency can break this cycle. Without changing how money works, the gap between the rich and the poor will continue to widen regardless of who is in power.
From the abstract
This paper argues that persistent economic inequality arises from the mathematical structure of capital accumulation—multiplicative returns, power-law distributions, and cross-domain compounding advantages—rather than from institutional failure alone, implying that conventional policy tools cannot fundamentally alter its trajectory. It proposes a <strong>Purpose-Bounded Currency System (PBCS)</strong> that replaces a unified currency with domain-specific exchange units, thereby severing cross-do