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Milton Friedman on a 100% inheritance tax: https://youtu.be/MRpEV2tmYz4 https://youtu.be/MRpEV2tmYz4 The argument is basically that it would encourage very wa
by bko 10y ago
Milton Friedman on a 100% inheritance tax:
https://youtu.be/MRpEV2tmYz4 https://youtu.be/MRpEV2tmYz4
The argument is basically that it would encourage very wasteful behavior. If you think about it, people often work to make the lives of their children better off to a large extent. My grandfather who lives in a poor country living on a pension still sends me $100 he saved up periodically despite the fact that I'm wealthier than him by many factors.
Without the ability to pass on wealth to future generations, empires would not be built in some cases, end of life would include many wasteful lavish purchases and the black market for wealth transfer services would balloon
- EliRivers 10y agoWhat is a "wasteful purchase" in this case? If the idea is to keep the money moving and to not give people huge amounts of free money by accident of birth, is not any purchase that isn't effectively taking huge amounts of raw materials and destroying them (as opposed to making something useful out of them) a good thing?
- bko 10y agoI would argue a wasteful purchase is fast cars and boats. By buying these IMO frivolous goods, you're diverting resources from investments that would serve society to those that benefit the very few (luxury auto makers). If instead you invested in stocks and bonds that fund companies that generate value and passing on the future proceeds to that investment to future generations, this would be arguably a better use of resources
- blibble 10y agomight as well just ban all entertainment entirely as it's entirely frivolous
- EliRivers 10y agoUnless you buy at the IPO, which is a minority of share purchases by a very long way, you're not funding companies. Buying a company's goods, such as cars or boats, however...
- simplify 10y agoWhat about investing stocks and bonds into companies that manufacture fast cars and boats? :)
- pcmaffey 10y agoAlso, the government would be incentivized to kill off it's wealthiest citizens.