The article examines the possibility of putting a cap on wealth accumulation and points out the flaws with such a progressive viewpoint. The author presents a radical policy that prevents wealthy people from amassing more than 10 million dollars.
Theoretically, this will help combat social inequality and build up a radically cohesive society, or that’s what the advocates want you to think. As of writing this article, I still have my doubts about building “a perfectly unified community, in which people can resist their urge for money and live harmoniously with each other”. It can be the paradise we have been striving for, but it is not without imperfections, at least in some aspects. Such an equal society will hamper progress. Some people will see no reason for working after they have passed that threshold due to the lack of financial incentives. Not to mention it will provoke a host of tax avoidance tactics. Wealthy individuals will hide their wealth by shifting to friendlier countries, which either impose a smaller tax burden or grant complete exemption.
13,500 Chinese millionaires are expected to migrate abroad in 2023
Many senior employees, having accumulated enough wealth, may become complacent and lose motivation to continue working. Consequently, the labor market will be deprived of a high-quality workforce, whose contributions not only drive productivity but also play a role in talent nourishment. Seniors possess something called “tacit knowledge”, which is gained through years of experience, and there exists no reliable way to record or encode it in written documents accessible to young workers. So the absence of seasoned workers in the workforce results in weakened ties between professionals and novices, thus hampering the process of knowledge transfer.
– Bui Hai Dang