[svlug] Re: A little on Open Source Philosophy... (fwd)

[Seth David Schoen]

Marilyn Davis writes:

> When you think about socio-economic models, don't just think about
> socialism, capitalism, libertarianism, ... please also consider
> capitalism with a cap.  Such a system would bring volunteer socialism
> as well as maximum personal freedom, fair distribution of resources,
> and less bitterness all around.

I'd think that those subjected to the cap would have plenty of bitterness
toward those not subjected to it, but that's just a guess.  One thing they
would have is a near-100% marginal benefit from hiding their income or
moving it to a more favorable jurisdiction, something which is not even true
of progressive taxation.

A relatively obscure, but illustrative example: if I win the lottery now, I
have some incentives to keep a job (concern about future income, desire to
supplement the income from the lottery).  If there is an absolute income
cap in effect, and the lottery caused me to hit it, I have very little
incentive to do any productive compensated work at all, since I will never be
able to keep even a portion of such compensation.  (Of course, lotteries
are far from the only thing which could cause people to hit the cap; if the
cap is "necessary", people are expected to be hitting it.)

The cap idea, as a general panacea, sounds like it belongs to the category of
random hacks on the free market, of Georgism presently sounds more interesting
to me.

-- 
   Seth David Schoen L&S '01 (undeclared) / schoen at uclink4.berkeley.edu
He said, "This is what the king who will reign over you will do."  And they
said, "Nay, but we will have a king over us, that we also may be like all the
nations." (1 Sam 8)  http://ishmael.geecs.org/~sigma/   http://www.loyalty.org/

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