Zeroing Wealth Disparity

[Martin Hash]

Curing the Top 1% wealth problem is not complicated but it would be vehemently resisted: limited inheritance. Each heir could only receive an annuity that would provide a comfortable but not exceptional life. Anything imaginary, such as money or stocks would simply disappear, hard assets would be sold to finance the annuity, and real property would convert to lifetime only occupancy.

[SuburbanFarmer]

You’re a communist now??

Nobody’s working hard or investing for stuff that gets confiscated in a few decades.

[Martin Hash]

You’re a communist now??

Nobody’s working hard or investing for stuff that gets confiscated in a few decades.

Not the people who own the world anyway.

Limiting inheritance has always been my solution to concentrated wealth. (I think you & I have actually debated it before?) It cures the problem while still recognizing individual liberty. Not doing something leads to revolution. Taking a 100 or so fortunes every year is workable. What makes this idea different from my previous presentation is that I don't think the wealth needs to be redistributed, just disappeared as if it never existed; money is imaginary after all.

[SuburbanFarmer]

Nobody’s inheriting gobs of cash, it’s all investments of one kind or another.

See this is the same sort of issue as price controls. You mandate a final sales price, and the industry collapses under inflation.

If you don’t try to control the final price, and just mandate a maximum profit margin of 5% after-tax ( or maybe 5% + the Fed rate?) on all sales instead, you get the same effect without destroying the industries.

Go after the source of this insane wealth disparity slowly, instead of the symptoms.

[Martin Hash]

Money & stocks are imaginary. If both were zeroed out at death, nothing would change. As to real things: how many houses, cars & ex-wives does someone need?

If an heir is truly capable, start transferring management of a real business over to them before death, and they'll make their own money.

[SuburbanFarmer]

Money & stocks are imaginary. If both were zeroed out at death, nothing would change. As to real things: how many houses, cars & ex-wives does someone need?

If an heir is truly capable, start transferring management of a real business over to them before death, and they'll make their own money.

What does it mean to ‘zero out’ stocks/bonds? Where does that asset go to? If you mean literally ceases to exist, you’ve just changed the entire market to a valueless ticket system. Full Collapse.

Does the company that issued the stock have to buy it back or simply keep the money? Does the government that issued the bond no longer have to pay it?
There are counterparties involved. There is no ‘zeroing’.

[Martin Hash]

So what if money suddenly disappears? Just like it suddenly appeared.

Same with stocks. It makes the remaining stock more imaginarily valuable but so do lots of things - stocks are gambling.

Bond cancelation helps everyone.

It’s like reverse bankruptcy.

[SuburbanFarmer]

So what if money suddenly disappears? Just like it suddenly appeared.

Same with stocks. It makes the remaining stock more imaginarily valuable but so do lots of things - stocks are gambling.

Bond cancelation helps everyone.

It’s like reverse bankruptcy.

Sure…. And you’ve hyper-incentivized bond sales, and de-incentivized purchasing them after 40. So the highest earners pile all their money into trusts and fake charities, and the government collapses.

[C-Mag]

The major problems with wealth disparity is:

1. Fake ass fiat currency
2. Tax and Investing systems that favor wealthy.
3. The 1% are completely detached from their Nations and native people.


The current system, ran by international bandits sees people as livestock to farm for money.

You can't have mega corps like Black Rock and Vanguard controlling everything.


BTW who wants Zero wealth disparity. I'd venture to say all of us here would become poorer in that system

[Martin Hash]

The major problems with wealth disparity is:

1. Fake ass fiat currency
2. Tax and Investing systems that favor wealthy.
3. The 1% are completely detached from their Nations and native people.


The current system, ran by international bandits sees people as livestock to farm for money.

You can't have mega corps like Black Rock and Vanguard controlling everything.


BTW who wants Zero wealth disparity. I'd venture to say all of us here would become poorer in that system

Yep.

p.s. I’ll need to rename this idea because only extreme wealth disparity is the problem.