3 ms·
I'm generally a fan of redistribution strategies, but, it's worth noting that motivation is not just a binary function of "is the marginal value > 0". Say I co
by Yen 9y ago
I'm generally a fan of redistribution strategies, but, it's worth noting that motivation is not just a binary function of "is the marginal value > 0".
Say I could spend 30 hrs/week running a small business at moderate efficiency, and make $100k/year in profits, or 60 hrs/week running a much larger, more efficient business for $10m/year in profits.
My motivation to put in the extra 30 hrs/week is going to depend greatly on the absolute value of the difference, after taxes. If taxes are such that I take home $90k vs $7million, I'm probably going to work the 60-hour strategy. If taxes are such that I take home $89k vs $500k, I may or may not consider that worth the extra hours.