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Wealth Simulator

A simple economic model simulation for wealth distribution.

Wealthy
Worker
Mathematical Formulas & Assumptions

Assumptions:

  • Economic Growth ($g$) acts as a universal profit margin.
  • Wealthy capital compounds at rate $g$, while worker capital does not.
  • Labor Loop: For every $1 paid in wages, the wealthy nets $g in profit.
  • Consumption Loop: Worker living expenses circulate back into the economy, but the wealthy extracts $g margin as corporate profit.

Core Formulas (Year $t$ to $t+1$):

$W_{t+1} = W_t × (1 + g - \tau_{wealth}) + P × g + E × g + Welfare$
$K_{t+1} = K_t × (1 - \tau_{wealth}) + P × (1 - \tau_{income}) - E × g + Welfare$