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by virgilp 2302 days ago
But nobody gave them the money! Take eg Bezos - Amazon is textbook example of wealth creation, in the economic sense (lowered the prices, thus people could afford more). His wealth is not "given", it's created! How do you control the distribution of that wealth, other than tax, in a way that doesn't destroy the very mechanism that made it possible?

(honest question, it feels like you have an answer; I just don't see it)

1 comments

I am suggesting taxation. I'm just pointing out that the idea that taxation "takes away" wealth that people have "earned" pre-supposes an economic system (and ultimately a moral system - think about what it really means to earn something: it means to deserve it) where money accrues to those who perform certain actions (such as selling goods). It perfectly consistent to have an economic system where the rule is that beyond a certain point, you only accrue a portion of the value given by the person obtaining the good.

What is money, other than the power to get others to perform economic activity for you, backed by the state? It is given by it's very nature.

But taxation is "taking money" as opposed to "not giving it in the first place". These are not people who take a salary - if you tax the company into oblivion so that "it doesn't make money in the first place", then you stop the wealth creation. If you tax the transfer from the company to the individual... well, you need to be much more specific on how you do that in a way that is not making them look wealthy. Also, this form of taxation will not ensure equitable distribution of wealth to the contributors of the enterprise (i.e. Amazon warehouse employees would still be "wage slaves") - just redistribution to the general population (and just redistribution, not "equitable redistribution", because that would be too hard a problem to solve). Now don't get me wrong - I am e.g. in favor of "basic income" and think we should strive to offer a decent minimum standard of living to everyone. But it's a big jump from there to "we should prevent people from getting _too_ rich" - both these are initiatives that have some merit and some downsides, but I don't think one helps the other in any meaningful way.

(as a side note, I disagree both that Bill Gates' philanthropy is "hopelessly ineffective" or that the rich drive demand - but these are two long discussions/debates in and of themselves)