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>>Moreover, employers enjoy a bargaining advantage over workers and can coerce them to accept worse terms, because they need individual workers less than indivi

>>Moreover, employers enjoy a bargaining advantage over workers and can coerce them to accept worse terms, because they need individual workers less than individual workers need employment. Where does Smith argue this? What's striking in Smith's writings is how strongly he opposed high taxes on any group, including the rich, and any sort of infringement on contract liberty. With respect to the latter, in every prescription in the Wealth of Nations where he mentions regulations, he argues that such restrictions are immoral, irrespective of the intention behind them. As for Smith's claim that abnormally high profits are a pathology stemming from curtailments of market freedom, it has been validated by economic analyses that show profit margins correlated with the degree of regulatory restrictions in an industry. Occupations that provide a pay premium, above what is expected from the skills and education level of the worker, are also concentrated in highly regulated sectors: https://www.brookings.edu/research/make-elites-compete-why-the-1-earn-so-much-and-what-to-do-about-it/ https://www.brookings.edu/research/make-elites-compete-why-t... This same trend in seen in housing, with increases in regulatory restrictions in property development contributing to income inequality: https://obamawhitehouse.archives.gov/sites/whitehouse.gov/files/images/Housing_Development_Toolkit%2520f.2.pdf https://obamawhitehouse.archives.gov/sites/whitehouse.gov/fi... What I've witnessed in the cryptocurrency market is the same: token sales once gave access to lucrative early stage investment opportunities, like Ethereum which launched with a permissionless crowdsale open to anyone in the world with BTC. This study confirms that: https://link.springer.com/article/10.1007/s11408-020-00366-0 https://link.springer.com/article/10.1007/s11408-020-00366-0 "The average ICO has almost 4700 contributors. The median contributor invests a relatively small amount. The ICO market appears to have successfully given access to the financing of innovation to a new class of investors, which is a long-standing public policy issue" In 2017, the SEC effectively shut down programmatic token sales, bases on its ideological tenet that centralized regulatory gatkeeping provides "investor protection", and since then, the huge opportunities have been fully monopolized by venture capital firms. Some have seen 1000X returns on investment by being alone in funding pre-launch projects. The most valuable smart contract platforms launched since 2017 almost all have token distributions where at least a third or half of tokens went to a small group of venture capitalists who were able to bid on the first release of tokens without any competition from ordinary retail investors: https://i.ibb.co/sHNb5gL/E-Js-Ln9-Vc-AI5-F14.png https://i.ibb.co/sHNb5gL/E-Js-Ln9-Vc-AI5-F14.png

hodgesrm 5y ago
> Occupations that provide a pay premium, above what is expected from the skills and education level of the worker, are also concentrated in highly regulated sectors: Baseball is an obvious counterexample. Median player salary is $1.15M, which is actually down from previous years. [0] The profession requires incredible talent, as anyone who has seen an outfielder throw from deep left to home plate would agree. In addition to talent, players also have a strong union. [0] https://www.espn.com/mlb/story/_/id/31270164/average-mlb-salary-417-million-48-2019 https://www.espn.com/mlb/story/_/id/31270164/average-mlb-sal...
shkkmo 5y ago
> What's striking in Smith's writings is how strongly he opposed high taxes on any group Where is this? I see Smith lay out 4 general maxims, not of which mention the level of taxation. 1. proportionality (everyone pays relative to their income) 2. Non-arbitrariness (everyone knows what they have to pay based on establish rules) 3. Timeliness (people are taxed then it is easiet for them to pay) 4. Efficiency (you don't have to spend to much administering taxes and the taxes don't prevent economic activity) I also see specifx examples where Smith advocates for the benefit of specific higher taxes to discourage inefficient economic behavior (in this example, high lease renewal fees:) >> By rendering the tax upon such fines a good deal heavier than upon the ordinary rent, this hurtful practice might be discouraged, to the no small advantage of all the different parties concerned, of the landlord, of the tenant, of the sovereign, and of the whole community. Indeed, there seems to be a strong theme throughout Smith's discussion of taxes that they aren't wholey good or bad, but should be judged primarily bu the degree to which they suppport the above maxims. If you have sections to cite where Smith condemns high taxes, I would be curious to see them. Edit: One particular case where Smith argues against high taxes is on commodities, but that is explicitly justfied because Smith views that particular type of tax as violating maxim 4: >> High taxes, sometimes by diminishing the consumption of the taxed commodities, and sometimes by encouraging smuggling, frequently afford a smaller revenue to government than what might be drawn from more moderate taxes.
- CryptoPunk 5y ago
  On the subject of taxation, almost all of his admonishments were to tax less and less intrusively: To subject every private family to the odious visits and examination of the tax-gatherers ... would be altogether inconsistent with liberty. and “[Governments are] ...without exception, the greatest spendthrifts in the society.” and “The agents of [government] regard the wealth of their master as inexhaustible; are careless at what price they buy … at what price they sell.” and “Those unproductive hands [in the government] … may consume so great a share … that all the frugality and good conduct of individuals may not be able to compensate … this violent and forced encroachment [of taxation].” and Now many such things may be done without intitling the people to rise in arms. A gross, flagrant, and palpable abuse no doubt will do it, as if they should be required to pay a tax equal to half or third of their substance. and Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things. and There is no art which one government sooner learns of another than that of draining money from the pockets of the people. and “The profusion of government … [has] retarded the natural progress.” and The statesman who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. His preference for ground rents: Both ground- rents and the ordinary rent of land are a species of revenue which the owner, in many cases, enjoys without any care or attention of his own. The annual produce of the land and labour of the society, the real wealth and revenue of the great body of the people, might be the same after such a tax as before. Ground-rents, and the ordinary rent of land are, therefore, perhaps the species of revenue which can best bear to have a peculiar tax imposed upon them.

hodgesrm 5y ago

> Occupations that provide a pay premium, above what is expected from the skills and education level of the worker, are also concentrated in highly regulated sectors: Baseball is an obvious counterexample. Median player salary is $1.15M, which is actually down from previous years. [0] The profession requires incredible talent, as anyone who has seen an outfielder throw from deep left to home plate would agree. In addition to talent, players also have a strong union. [0] https://www.espn.com/mlb/story/_/id/31270164/average-mlb-salary-417-million-48-2019 https://www.espn.com/mlb/story/_/id/31270164/average-mlb-sal...

shkkmo 5y ago

> What's striking in Smith's writings is how strongly he opposed high taxes on any group Where is this? I see Smith lay out 4 general maxims, not of which mention the level of taxation. 1. proportionality (everyone pays relative to their income) 2. Non-arbitrariness (everyone knows what they have to pay based on establish rules) 3. Timeliness (people are taxed then it is easiet for them to pay) 4. Efficiency (you don't have to spend to much administering taxes and the taxes don't prevent economic activity) I also see specifx examples where Smith advocates for the benefit of specific higher taxes to discourage inefficient economic behavior (in this example, high lease renewal fees:) >> By rendering the tax upon such fines a good deal heavier than upon the ordinary rent, this hurtful practice might be discouraged, to the no small advantage of all the different parties concerned, of the landlord, of the tenant, of the sovereign, and of the whole community. Indeed, there seems to be a strong theme throughout Smith's discussion of taxes that they aren't wholey good or bad, but should be judged primarily bu the degree to which they suppport the above maxims. If you have sections to cite where Smith condemns high taxes, I would be curious to see them. Edit: One particular case where Smith argues against high taxes is on commodities, but that is explicitly justfied because Smith views that particular type of tax as violating maxim 4: >> High taxes, sometimes by diminishing the consumption of the taxed commodities, and sometimes by encouraging smuggling, frequently afford a smaller revenue to government than what might be drawn from more moderate taxes.

CryptoPunk 5y ago
On the subject of taxation, almost all of his admonishments were to tax less and less intrusively: To subject every private family to the odious visits and examination of the tax-gatherers ... would be altogether inconsistent with liberty. and “[Governments are] ...without exception, the greatest spendthrifts in the society.” and “The agents of [government] regard the wealth of their master as inexhaustible; are careless at what price they buy … at what price they sell.” and “Those unproductive hands [in the government] … may consume so great a share … that all the frugality and good conduct of individuals may not be able to compensate … this violent and forced encroachment [of taxation].” and Now many such things may be done without intitling the people to rise in arms. A gross, flagrant, and palpable abuse no doubt will do it, as if they should be required to pay a tax equal to half or third of their substance. and Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things. and There is no art which one government sooner learns of another than that of draining money from the pockets of the people. and “The profusion of government … [has] retarded the natural progress.” and The statesman who should attempt to direct private people in what manner they ought to employ their capitals, would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. His preference for ground rents: Both ground- rents and the ordinary rent of land are a species of revenue which the owner, in many cases, enjoys without any care or attention of his own. The annual produce of the land and labour of the society, the real wealth and revenue of the great body of the people, might be the same after such a tax as before. Ground-rents, and the ordinary rent of land are, therefore, perhaps the species of revenue which can best bear to have a peculiar tax imposed upon them.