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I'm pretty sure that higher taxes in general do reduce inequality. Inequality is far smaller in Europe than in the US, smaller still in Scandinavia.

by cm2012 7y ago

jopsen 7y ago
It's also what you do with the taxes..
- zanny 7y ago
  Barring legislative capture by the rich (which happens a lot because of their distortedly large influence) just taking money out of their pockets does a lot to remedy a lot of the negative consequences of such high inequality. They could tax the rich, straight pay off federal debt obligations, and society would be healthier for it. Wealth inequality is more about the influence money has in both micro and macro-economic and social contexts than "I want what they have". Its no different than how other monopolizations work - the more of a supply you hold, the more distorted the market is around you. The same applies to money. Except money impacts all aspects of society, all markets - it gives you a greater voice in government, gives you influence over the lives of upwards of billions of people, etc. Just taking away that power from private individuals is often by itself a net positive for liberty.
User23 7y ago
This is caused by at least two things. First, as noted, crushing the little rich with high taxes. Second, the ultra rich just hide their money (funny how everyone memory-holed the Panama Papers) so it doesn't show up in the figures and count toward inequality. US mega-rich have less incentive to hide their money, in fact some US states are seen as tax havens, so the figures here are more honest. Also, there are European countries like Germany with an income distribution pretty close to the US.
- bwb 7y ago
  Yep, but IMO Germany has done a better job of controlling major costs which leads to less stress, ie housing and health care are much lower costs there IMO.
sadris 7y ago
There is less cognitive ability diversity in Scandinavia than the US. Given the extreme correlation between intelligence and workplace performance, it would be expected in a locality with high levels of variance in intelligence.
- itronitron 7y ago
  I'm not so sure that there is less cognitive ability diversity in Scandinavia, given this >> https://en.wikipedia.org/wiki/Great_Nordic_Biker_War https://en.wikipedia.org/wiki/Great_Nordic_Biker_War

I'm pretty sure that higher taxes in general do reduce inequality. Inequality is far smaller in Europe than in the US, smaller still in Scandinavia.

by cm2012 7y ago

I'm pretty sure that higher taxes in general do reduce inequality. Inequality is far smaller in Europe than in the US, smaller still in Scandinavia.

jopsen 7y ago

It's also what you do with the taxes..

zanny 7y ago
Barring legislative capture by the rich (which happens a lot because of their distortedly large influence) just taking money out of their pockets does a lot to remedy a lot of the negative consequences of such high inequality. They could tax the rich, straight pay off federal debt obligations, and society would be healthier for it. Wealth inequality is more about the influence money has in both micro and macro-economic and social contexts than "I want what they have". Its no different than how other monopolizations work - the more of a supply you hold, the more distorted the market is around you. The same applies to money. Except money impacts all aspects of society, all markets - it gives you a greater voice in government, gives you influence over the lives of upwards of billions of people, etc. Just taking away that power from private individuals is often by itself a net positive for liberty.

User23 7y ago

This is caused by at least two things. First, as noted, crushing the little rich with high taxes. Second, the ultra rich just hide their money (funny how everyone memory-holed the Panama Papers) so it doesn't show up in the figures and count toward inequality. US mega-rich have less incentive to hide their money, in fact some US states are seen as tax havens, so the figures here are more honest. Also, there are European countries like Germany with an income distribution pretty close to the US.

bwb 7y ago
Yep, but IMO Germany has done a better job of controlling major costs which leads to less stress, ie housing and health care are much lower costs there IMO.

sadris 7y ago

There is less cognitive ability diversity in Scandinavia than the US. Given the extreme correlation between intelligence and workplace performance, it would be expected in a locality with high levels of variance in intelligence.

itronitron 7y ago
I'm not so sure that there is less cognitive ability diversity in Scandinavia, given this >> https://en.wikipedia.org/wiki/Great_Nordic_Biker_War https://en.wikipedia.org/wiki/Great_Nordic_Biker_War