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The point of people being wealthy is that they get to take risks based on their judgement and we hope that benefits everyone. Without a reward nobody will tak
by t43562 3y ago
The point of people being wealthy is that they get to take risks based on their judgement and we hope that benefits everyone. Without a reward nobody will take risks. Governments don't take political risks so you cannot expect them to be the sole chance takers in the economy.
What we obviously don't want is people who find a way to dump risk on everyone else so that they cannot fail. Not paying a living wage is a way to do that for example.
- deleted 3y ago[deleted]
- markdown 3y agoYup. $1M/yr (the example I provided above) is a massive reward, so taxation in this way (leaving the risk taker huge rewards) is a great way to encourage entrepreneurship while ensuring a better society by using the extra money (taxed) to give him better streets, lower crime, and a better educated workforce/neighbours.
- t43562 3y agoThat prevents a person from taking their next bigger risk e.g. building a factory and hoping that the products it makes will sell. If we only had better streets we'd be a bit like the Romans - bogged down trying to satisfy everyone with centuries old technology.