tag:blogger.com,1999:blog-7735441.post3000939139720868723..comments2012-11-01T19:17:57.743-07:00Comments on Achal Augustine: OWS Should Celebrate Inequality Demand MobilityAchalhttp://www.blogger.com/profile/11017438121670064359noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7735441.post-27704416700032991392012-04-18T09:23:04.701-07:002012-04-18T09:23:04.701-07:00I agree that the farm example is simplistic and it...I agree that the farm example is simplistic and it's designed to be simple to clearly show the importance of rewarding successful people even if it's due to luck because there's no good mechanism to determine which success is due to talent and hard work and which is due to dumb luck. The option to encourage and promote success is the reward success as long as it's legal. My second example about college football coaches getting paid 5 million dollars just to determine how 22 players run up and down the street shows why CEOs should be paid very highly because their actions and decisions determine how millions of people work each day from 9 to 5. Providing huge incentives is the best way to attract the best talent to any field of work.<br /><br />I think we both agree on fixing the problem bottom up but we disagree on method to pay for how society pay for education. I believe Gov should pay for it as vouchers so that parents can send kids to the best schools available and schools will compete and improve themselves.<br /><br />I don't understand how progressive tax system can be deemed fair. I think it's just majority (poor and middle class) imposing their force on the minority (rich) due to the defect in a democratic system where equal taxation is not included in constitution like equal right to justice.<br /><br />A flat tax will no loop holes will generate a lot of taxes and any short fall in revenue can be compensated by creating a new wealth protection tax like property tax. Wealthy people benefit disproportional from the military, police and justice system in protecting their private property and it's fair to ask them to pay tax proportional to their net wealth ( Assets - Liabilities). A two percent wealth tax could be something to start with but I don't have the exact number to figure our what would fix the gap created by a flat tax of 18 - 23 %Achalhttps://www.blogger.com/profile/11017438121670064359noreply@blogger.comtag:blogger.com,1999:blog-7735441.post-43563304935120648792012-04-17T16:45:13.369-07:002012-04-17T16:45:13.369-07:00Your farm example is overly-simplistic and, as a r...Your farm example is overly-simplistic and, as a result, offers no real support for your argument. <br /><br />First, the difference between 10,000 and 7,000 is relatively minor in comparison to the difference between a $35,000 salary and a $10,000,000 salary (or earnings from investments). If the "wealth gap" was as small as your example indicates, we would not have a problem. But in reality, the wealth gap is much, much larger. <br /><br />Second, your example assumes that one farmer can simply work harder to make up the difference. But this is not true in real life. A school teacher cannot simply "work harder" to make up the difference between his/her salary and the salary of the CEO of a major corporation. While I will not deny that there are many people who are poor because they are lazy, they are significantly outnumbered by people who work very hard but simply are not paid a decent salary. Plus, there are a number of "wealthy" people who have done nothing to earn their wealth other than be born into a certain family. <br /><br />Regardless, we should not celebrate inequality. But you are correct that we should focus on social mobility. Because social mobility is what destroys economic inequality. When people have opportunities to go to good schools and get good jobs, economic inequality goes away. But unfortunately, right now, in large part to the Bush-era policies, social mobility (and economic inequality) are worse than at any other time in the lives of most people. Public schools are struggling to keep their doors open and provide quality education. College tuition is skyrocketing, making it difficult for even middle-class kids to get a degree and burdening those who do receive a degree with student loan debt. I agree with you to the extent that you believe the solution to the problem of income inequality starts at the bottom, by fixing our education system. But we also need to provide safety nets and social welfare programs. Even though there are people who take advantage of these programs, you cannot punish the people who need these programs because of the actions of a few. It is a necessary evil. <br /><br />Also, for the record, based on my 2011 taxes I am in the top 10% of wage-earners in the US. I came from nothing (poor farm family in the midwest) but put myself through college and two graduate school programs (JD/MBA). So I am well-aware of what opportunities exist for social mobility. But mostly my experience has shown me that I am the exception. Most poor people remain poor. Because of this, I support higher taxes on the wealthy, because I believe it is in the best interests of our country as a whole. Although GOP policies and tax cuts would benefit me personally, I believe that any benefits I receive would be more than offset by the growing inequality and damage such policies and tax cuts would do to our government's ability to function on any reasonable level.superfly79https://www.blogger.com/profile/17840105807032548646noreply@blogger.com