Monday, April 21, 2014

Government - Thriving on Inequality

Take his tax increases. He doubts that they would hurt economic growth. This seems questionable. Incentives must matter, at least slightly. Or consider his predicted slowdown in the world economy. This seems possible, but if it happens, capital owners would likely suffer lower returns. As for the power of the superrich, they hardly control most democracies. In the United States, where about 70 percent of federal spending goes to the poor and middle class, the richest 1 percent pay nearly a quarter of federal taxes. After-tax and post-government-transfer incomes are less unequal than Piketty's pretax figures.

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The idea that governments are the right tools to limit inequality kind of makes me laugh.  The idea that inequality hurts anyone is also laughable - mainly, inequality of outcomes gives politicians what they want most - a reason to make us fight with each other.  

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