Reply #13: I'm speaking of wealth concentrated into few hands

[Warpy]

We were able to tolerate that quite well in the 50s and early 60s, while there was still a mechanism in place to keep it from passing to the next generation in its totality, and a mechanism to make it harder for wealth to concentrate. The few who possessed great wealth did provide seed money, it's how Gates was able to buy DOS and get Microshaft going. That's how the system works best.

However, when money stops moving, it stops working, as you pointed out. Without a disincentive to greed provided by a progressive income tax system and a disincentive to massive inheritance provided by a stiff inheritance tax, wealth has continued to concentrate into fewer and fewer hands and is now leaving the country to provide seed money elsewhere.

While this is nice for the third world, it is incredibly hard on this country and the people who must still live here.

Wealth can be either constructive or parasitic in nature. Due to the past 38 years of conservative fiscal policy from both parties, it has become the latter.