| I don’t care what they spend it on, I never claimed to care. I agree ideologically with Adam’s premise though. It is in the best interest of the nation and the individuals living at that time that the assets and wealth of that nation be accessible to anyone living in it. The accumulation of wealth across multiple generations has an extremely long history spanning back centuries of corruption, self dealing, preferentially treatment, and the hoarding of the more desirable assets (land for example) that the heirs did not earn or work for and cannot be enjoyed by a new entrant in the market. Being entitled to something because of your blood is fundamentally unamerican. We fought for our independence from such a system. This country.. at least as how I was raised was one of grit, hard work, and innovation which determined who you’d be in life. A country where anyone with a novel idea or ruthless cunning can carve out a slice for themselves. The idea of inheritance undermines that, heirs did not earn anything by being born to the right parent, own things they did not work for. This country is too young to have the problems of some European nations past but I think it’s starting to go that way. I think the founders saw the problems caused by bloodline rule and heirs and didn’t want that here. There should be no inheritance. The heirs didn’t work for it, they’re no more entitled to it then I am. If a parent is wealthy then the kids will enjoy a life of potential high society, connections, and Ivy League educations, but they have to make it for themselves. I stand firmly behind that American ideal |
In this case, the parent (X) gave their wealth to their child (Y), and in return they get to satisfy their "empire"- and family- building ambition, which in subjective utility terms to them is superior to alternative uses of that wealth. Perhaps they've been working all their life for this motivation, it drives many people. A perceived level of accomplishment that extends post-death.
That's the nature of a decentralized, high-freedom world. X and Y will often transact and it's not clear what the subjective value exchange is.
As long as that transaction isn't hurting you through negative externalities, it's my opinion that you have no business interfering in that transaction.
I believe you do.If at age 60, they buy 500 Ferraris, that's okay. If at age 60, they instead send that wealth to their kids, that's not okay.
The former transaction (wealth <--> Ferraris) is okay.
The latter transaction (wealth <--> subjective value from family/empire-building) is not okay.
Personally, if I was rich, I would derive much higher subjective value from giving that wealth to my kids than buying 500 Ferraris.
Charity beneficiaries "don't work" for the money that's given to them. Are they entitled to it more than you?I would say yes, because it was a voluntary exchange from the charity to that individual. We've no business in interfering in that.
We may think that the purpose of the charity is stupid, but that's the private, decentralized decision that they've come to with their own wealth.
I don't put too much weight on these broad utilitarian arguments.In practice, it so often ends with an undesirable outcome. If we did a 100% inheritance tax, do we know the impact on frivolous consumption or people's motivations?
In theory, nobody is really a utilitarian anyway, people's determinations come from biological/a priori frameworks and a subjective sense of fairness and justice with a tinge of impact from jealousy and self-interest (I'm not accusing you of that).
Reasoning from a set of basic axioms which generally, but not always, point in the right direction has a better track record, in my opinion.
A land tax would be great.