[canadaduane]

> What's worse (for the society), is that in this world nobody has an incentive to create wealth, because they know it'll just be taken away.

I know this has been discussed at length in many places, but I just want to point out that it isn't binary. There is some kind of distribution where "sovereign ownership" (full protection, no taxes, no redistribution) would entice the most people to create wealth (and even then, I doubt it would be 100% of the population), all the way to "mob rule" where a minimal number of people would be enticed to create wealth (and I don't think it would be 0%). People do things for multidimensional reasons.

That said, our societies have tried many variations along the spectrum between these two extremes, and I think we have uncovered the importance of protecting wealth and the incentive to create it.