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This is a red herring. Rather than control of wealth, we should be concerned with control of consumption. Poor people make lousy capital allocators (they do
by blazespin 13y ago
This is a red herring. Rather than control of wealth, we should be concerned with control of consumption. Poor people make lousy capital allocators (they don't have the right education, they don't have access to industry contacts, and they don't have a history of successful investing).
We constantly talk about redistributing income, taxing the high income earners. We have to stop this. We have to start taxing the high consumers, we need a progressive consumption tax. If someone makes a very high income, but saves it all rather than buys that flashy (frankly, worthless) car - then they should be allowed to keep all of that.
- Joeboy 13y ago> Poor people make lousy capital allocators Do they? My intuition would be that giving a thousand people a thousand bucks each would mostly have better results than giving one person a million bucks. Occasionally the rich come up with a Gates Foundation or whatever, but there's an opportunity cost to handing billions of dollars to billg too.
- gte910h 13y agoWhat? Are you insane. Consumption drives the economy. Hoarding slows it down. Why as a society would we want to punish consumption!