this post was submitted on 09 May 2025
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Do you have an alternative suggestion to tackle the issues that such a high tax rate tries to address? I'm just genuinely curious.
If by issues you mean wealth distribution and the existence of an ultra-rich, powerful class, no. I don’t have a solution to that. The fundamental problem is that wealth brings power and the concentration of wealth and power in fewer hands brings other benefits, namely: coordination.
Smaller groups nearly always have an easier time coordinating their efforts than larger groups, so smaller groups tend to have a disadvantage unless they’re on the battlefield (and even then, wealthy well-supplied small groups of soldiers easily defeat large groups of poorly-equipped, poorly-trained peasants).
The big problem with the high-tax approach is that it’s a class warfare strategy. Apart from the communist revolutions of the 20th century, the history of class warfare has not gone well for the non-rich side. I think that moment in history was a unique one and unlikely to be repeated, barring the unforeseen appearance of some new decentralized warfare technology.
So where does that leave us? We can try non-class-warfare strategies. We want to align the interests of everyone, rich and poor, towards a common goal: peace, prosperity, and sustainability. Why would the rich want this? Because life is better that way! It’s much nicer to live in a safe, walkable, integrated, and prosperous community than it is to live in a walled compound surrounded by ghettos.
💯
Selfish rich people should be properly selfish and make the world better so they don’t have to be grossed out by poors. Or worry about heli skiing becoming impossible one day. Be selfish richies!
Hey economists love VAT I hear?
I’m reminded by the story I once read about Eritrea, a country with wealthy enclaves for the royal family plus foreign petro-engineers. The enclaves have these walls along the road with vast ghettos on the other side.
It’s a miserable place. The engineers tend not to stay long. Just make a lot of money in a short time period and then leave.