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by smallnamespace
3177 days ago
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Here's the most important loop that's been driving up staggering wealth inequality in our lifetimes: - Corporations and the ultra-rich tend to be the ones who try to profit-maximize the most (because people who care about other things, don't work as hard to accumulate wealth, and because corporations that profit-maximize the best tend to survive and grow better) - National governments since WW2 had done a decent job of redistributing wealth, but since there are increasing returns to scale on investing in tax avoidance/evasion, it is the richest individuals and corporations that are best able to avoid taxes and move wealth offshore - It is cheaper and easier to cut a sweetheart tax with a corporation or a rich individual to temporarily attract capital to a nation-state than to generate wealth the hard way through education and infrastructure investment So our global capitalist system for the past few decades has simultaneously selected for the most selfish, profit-maximizing institutions and individuals, while also setting up a race to the bottom between nations (and even cities and states -- see Amazon's bid for a 2nd headquarters or Tesla's Gigafactory) to see who can give the biggest tax breaks to those at the top. |
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