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Saturday, October 07, 2006

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Arthur Eckart

It's possible greater utility, or satisfaction, is derived from the other person losing more. Perhaps, this is why some people want higher taxes for the rich (e.g. inheritance taxes). Does that make people who play in casinos or lotteries irrational? At what level will the odds against them be high enough not to play at all?

Arthur Eckart

Also, I may add, if the sum was 10 million instead of 10, how many would reject 2.5 million (or 1 million)?

A. PERLA

Eckart: "Perhaps, this is why some people want higher taxes for the rich (e.g. inheritance taxes)."

"Some people" want the rich to share more because they have more.

More so, most of the rich, apart from the new rich, have inherited and not made the least effort to earn their wealth. (Unless the word "earning" means waiting around for portfolio growth to offer its rents.)

Social harmony, and therefore economic fairness, is also a matter of self-interest. The French revolution comes to mind as an example, given the social upheaval that ensued. But, that historical fact was simply an exagerration of the cleavage between the haves and the have-nots.

Social harmony is a necessary element of any nation that cares for its ultimate survival and well-being. The continued accumulation of most of the riches by just a small percentage of the population is not conducive to such.

Communism has proven that all people possessing a common share of the wealth is unworkable. But, it is not yet proven than 80% of the wealth going to 20% of the population is a viable alternative either.

Communism is dead. But, then, maybe unbridled capitalism is also on its way out. Time will tell.

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