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You might not realise this, but their trust fund does offer a service. Any investment always has another end. You have a person that has too many resources, and
by koonsolo 8y ago
You might not realise this, but their trust fund does offer a service. Any investment always has another end. You have a person that has too many resources, and you have a person with too few. They are both making a deal where one rents out the resources. So although these kids do not "work", their money is working for them, offering other people rented resoures. That's how that works. Else there would be no return on that investment.
This is very different than taxes.
Not everyone needs to work indeed. But again it has 2 sides that are equal: you can only consume what you produce. This works on a large scale, but also on a small scale. Communism has shown that if you take away the small scale, and people are able to consume no matter how much they produce, that production goes down. Which is pretty logical if you think about it.
- skybrian 8y agoAnyone with kids knows that it's not true that you can only consume what you produce. Also consider how insurance works. Or a lottery. Or someone who got lucky by picking the right startup. If an economy enforces some constraint, it's a choice. There are other choices of constraint that would also work.
- koonsolo 8y agoKids act on a family scale, which is still pretty small. Insurance is spreading risks, lottery is gambling. These have nothing to do with production or wealth creation. The successful startup does create a huge amount of wealth, and therefore the owner can probably capture a large part of that wealth.