[jimmydorry]

Counter point: It's a self correcting problem (on a long enough time horizon). If his children can't manage their money by providing value to society (albeit not in the way that most can appreciate), they will quickly draw down that fortune and be unable to pass it on to their own children.

Investing that money, or otherwise allocating that money to companies who can better use it provides value to society at large, and in return, the person investing will receive a return on investment to live off.

[nemothekid]

>Counter point: It's a self correcting problem (on a long enough time horizon).

To point to someone who has done the research, 'Capital in the Twenty-First Century', states that its not a self-correcting problem. Furthermore, I'd argue that index investing make it incredibly difficult for his heirs to lose their money. Anything short of a collapse American global hegemonic power means their wealth will be relatively safe. Furthermore, investing is not means of wealth redistribution. I can invest billions in Wal-Mart, but that will not motivate them to pay their cashiers a cent more. The compounding effect of the wealthy owning most of the industry through the stock market means their share of the ownership grows, leading to headlines like we see.