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Past a few million, wealth has basically no correlation with consumption. So to the extent that economic inequality is about unequal access to consumer goods (v
by byrneseyeview 15y ago
Past a few million, wealth has basically no correlation with consumption. So to the extent that economic inequality is about unequal access to consumer goods (vs unequal numbers in a brokerage account), those high incomes are not a factor.
But they have an important indirect impact: wealth correlates with power; if you're richer, you can control more businesses, and run them the way you'd like. Thus, high marginal income taxes keep the old guard in power longer, and mean that ambitious people with new ideas take longer to take control.
High income taxes and capital gains taxes will mean that proportionately more of the world's companies will be owned and run by Rockefellers and du Ponts rather than Zuckerbergs.
- jbooth 15y agoNobody's talking about taxes here, and your assertions are completely unfounded. Save it for meet the press.
- byrneseyeview 15y agoI can't address the part about my assertions being unfounded, but you can replace "high marginal tax rates" with "lower levels of executive compensation" without affecting the argument. So, what false assertion did I make? It's interesting to read the first Forbes 400 list; there's a lot of old money there. Not so much lately.