top_idea_big TOP IDEA Voted number 1 of its week

Minimum inheritance - equality of capital

This idea is well argued by leftist economist Thomas Piketty, and particularly compelling for all the ‘free market capitalism with government regulation folk. Introduce a government funded inheritance at age 30. The amount is arbitrary but the idea is sizeable capital, take $300,000 for example. The greatest economic disparity through history has not been inequality of income, but rather inequality in wealth. Wealth inequality is determined by inequity in access to capital, and the time to reap compounded capital gains. Competition is the workhorse of capitalism, but the pool of potential entrepreneurs, and firms is limited to the small capital class, whilst the majority income worker class are constrained by working to meet high costs of living. By the time these workers have developed economic security (secure housing, secure wellbeing, secure lifestyle), they’re significantly through their working lifespan with a lower energy for risk. Providing economic security and ready access to capital at a young age enormously increases the capital class, the pool of potential entrepreneurs and competition in the small firms marketplace. Funding this is again arbitrary, but the most logical way would be a death tax. Around a 50% tax on inheritance above $200,000 would fund a minimum inheritance of $300,000 at age 30 in the US. This is framed as having your own wealth taxed when you die for equity of economic opportunity in youth. The vast majority of people come out significantly better off, all whilst making our society and capitalism tick better and reducing the burden on state welfare.
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