[fauigerzigerk]

I think it's important what kind of inequality we're talking about. Are we talking inequality between two people with similar opportunities and education, one lazy and unimaginative and the other a creative risk taker?

Or are we talking inequality between joe the dock worker, son of a dock worker, working the dock reasonably well, but never looking beyond, and jack the corporate lawyer, son of a corporate lawyer, working the legal docs reasonably well, but never looking beyond?

Inequality throughout history was rarely down to merit. I very much sympathise with Rand's point of view, but after having lived in one of the most run-down parts of the UK, I know that poverty breeds poverty.

Yes the superstars rise from poverty through their own work and they should not be punished for it. But for every superstar there are 100 joe/jack pairs and the difference between their income is based on little else than class.

[edit] Jill the waitress might have been a better example since dock workers have a powerful trade union in some countries.

[Retric]

I think the closer you get to merit based accumulations of wealth the better for society. Let's suppose you could give 15 million inflation adjusted to your children, but after that it's taxed at 75%. Now clearly 4 billion to 1 billion is not going to eliminate wealth quickly, but the history of the ford family and the ford company is going to look vary different.

Now do the same thing but start that at 250k vs 15 million. Your still going to have the corporate lawyer issue but that still has a lot to do with education and a type of drive.