The Decrease in US Wealth

Richard Posner, professor at the University of Chicago Law School and judge on the U.S. Court of Appeals, says what no politician dares to say:

“As society becomes more competitive and more meritocratic, income inequality is likely to rise simply as a consequence of the underlying inequality—which is very great—between people that is due to differences in IQ, energy, health, social skills, character, ambition, physical attractiveness, talent, and luck.”

As a result, policies such as aggressive taxation — intended to increase chances for “equal results”– are likely to decrease a country’s wealth.  The redistribution mentality reduces the role of merit in the allocation of economic rewards and results in a downward spiral of the economy.