On the contrary, there are many ways to make it work. The first is progressive income taxation, transferring wealth from rich to poor. Yes, the rich won’t like it, but the poor will.

You seem to think that wealth is created by rich people who work harder than poor people. But that’s not how the economy works. As I pointed out, the primary generator of wealth in the modern economy is capital, not labor. That is in fact the reason why labor is getting a shrinking part of the pie. We could more precisely target the problem by increasing tax rates for capital gains. Idiotically enough, we tax capital gains at a lower rate than income earned by labor. That’s backwards!

You might object that, if we tax capital gains at a higher rate, we’ll drive capital out of the market. What do you think rich people will do with all their money then? Buy their 32nd yacht? Put it under their bed? They have to put their money somewhere, and many of the wealthy have reached a point where the marginal entertainment value of their money is vanishingly small. They NEED a place to put it, even if the net ROI is low.

“Inequality incentives productivity.”

No, the only thing that inequality incentivizes is revolution. Watch the video I cited earlier.

Without it, everyone becomes equally poor.”

That’s not true. The Nordic countries have much lower Gini Coefficients than the USA, and their people are quite wealthy. More important, their political systems are almost boring, and overall happiness is higher.

Master of Science, Physics, 1975. Computer Game Designer. Interactive Storytelling. www.erasmatazz.com

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