Posted on April 8, by Scott Alexander I. I have a huge bias against growth mindset. More on Wikipedia here. Social psychology has been, um, very enthusiastic about denying that result.
May When people care enough about something to do it well, those who do it best tend to be far better than everyone else. You see the same gap between Raymond Chandler and the average writer of detective novels.
A top-ranked professional chess player could play ten thousand games against an ordinary club player without losing once. Like chess or painting or writing novels, making money is a very specialized skill. But for some reason we treat this skill differently.
No one complains taxing the rich essay writer a few people surpass all the rest at playing chess or writing novels, but when a few people make more money than the rest, we get editorials saying this is wrong.
The pattern of variation seems no different than for any other skill. What causes people to react so strongly when the skill is making money?
I think there are three reasons we treat making money as different: As far as I can tell, the first is mistaken, the second outdated, and the third empirically false. Could it be that, in a modern democracy, variation in income is actually a sign of health? It seems to be something that flows from parents.
Because of the circumstances in which they encounter it, children tend to misunderstand wealth. They confuse it with money.
They think that there is a fixed amount of it.
In fact, wealth is not money. Money is just a convenient way of trading one form of wealth for another. Wealth is the underlying stuff—the goods and services we buy. You can see wealth—in buildings and streets, in the clothes and the health of the people.
Where does wealth come from? This was easier to grasp when most people lived on farms, and made many of the things they wanted with their own hands. Then you could see in the house, the herds, and the granary the wealth that each family created.
It was obvious then too that the wealth of the world was not a fixed quantity that had to be shared out, like slices of a pie. If you wanted more wealth, you could make it.
This is just as true today, though few of us create wealth directly for ourselves except for a few vestigial domestic tasks. Mostly we create wealth for other people in exchange for money, which we then trade for the forms of wealth we want. The kids see to that. If you want something, you either have to make it, or do something of equivalent value for someone else, in order to get them to give you enough money to buy it.
You get paid by doing or making something people want, and those who make more money are often simply better at doing what people want.Taxing the rich can also be justified on moral grounds, if it is used as a form of wealth redistribution, with the tax money raised being used to aid the poorest sections of the population.
Countries such as Australia, Sweden and Canada all do well in terms of economic growth, despite them having high taxes. Mila Kunis and Ashton Kutcher welcome their second child together It's a boy! Mila Kunis and Ashton Kutcher welcome their second child together.
Say's Law and Supply Side Economics. It should be known that at the beginning of a dynasty, taxation yields a large revenue from small assessments. In spite of the seeming benefits of imposing higher taxes on the rich, such as redistribution of income, ability to pay and fairness, higher marginal or effective tax rates discourage productive activity of the rich, creating disincentives to take risks and produce more.
May When people care enough about something to do it well, those who do it best tend to be far better than everyone else. There's a huge gap between Leonardo and second-rate contemporaries like Borgognone. To Tax or Not to Tax? Essay Words | 8 Pages. To Tax or Not to Tax?
Since the recent passage of the Internet Tax Freedom Act, on October 21, , making the Internet tax free, there has been an intense debate on whether to tax or not to tax Internet purchases.