> they earned their wealth through smart capital allocation, why would you want to remove capital from proven allocators and forcibly move it to the least effective allocators?
1. You'd certainly want to remove it before they pass it on to their children -> 60% of all wealth in the US is inherited, mostly by the very wealthy.
2. Those most likely to scoop up redistributed capital are the efficient capital allocators at current time, which is better than calcified structure of efficient capital allocator from 1970 who has just put their money into index funds and passed their wealth on to their children.
3. Diminishing marginal utility of the dollar means strong first-order utility gains from redistribution of wealth which would need very large second-order impact on capital allocation effectiveness (and impact on behavior) to harm net utility.
1. You'd certainly want to remove it before they pass it on to their children -> 60% of all wealth in the US is inherited, mostly by the very wealthy.
2. Those most likely to scoop up redistributed capital are the efficient capital allocators at current time, which is better than calcified structure of efficient capital allocator from 1970 who has just put their money into index funds and passed their wealth on to their children.
3. Diminishing marginal utility of the dollar means strong first-order utility gains from redistribution of wealth which would need very large second-order impact on capital allocation effectiveness (and impact on behavior) to harm net utility.