Class Mobility, Rent Seekers & Inheritance

I believe that socio-economic classes are a fact of civilized life. No society has mananged to prevent the formation of classes. (Look for the irony in the authors actions). Attempts to abolish class such as socialism or communism have resulted in a new class where rank is determined not by income but by how effectively one can control/influence the resulting all powerful bureaucracies. I believe any attempt in the U.S. to equalize incomes will have those same corrupt results
If we don’t know how to abolish classes then our design must be to minimize the harm that the existence of classes does. Namely: class warfare, inhumane treatment of lower classes, power accrued to upper classes in excess of their competence. In other words: revolution, oppression and incompetence.
Democracy solves many of those problems. However in order for it to function well, there needs to be healthy class mobility. This Study shows there is still a large amount of class mobility. Some counter-arguments here. Our system is more or less working and attempts to increase income equality jeopardize income mobility w/o any substantial success.
To the end of increasing class mobility I propose abolishing capital gains taxes on small business (perhaps with a cap, after which taxes kick back in). I also propose giving poor kids school vouchers (especially in areas where school kid population is temporarily up) so they have opportunities currently available only to more privileged kids. Additionally;
I oppose rent seeking. Rent seekers are those who try to assure themselves a comfortable wealthy life style regardless of its effect on the body economic. Some examples are agriculturists who receive massive subsidies (ethanol and corn comes to mind) for dubious economic improvement. Industries that get high tariffs/excessive regulations to block their competitors from their markets (We pay for those in higher prices and less selection). Unions that use their political muscle to dictate terms to their employees (Hello UAW). The effect of this is to enrich themselves at the expense of the rest of us. Why did I go to school? That is not the worst though. In many instances these rent seekers block reform and contribute to general dysfunction. The teachers union is an example of this. Bad teachers can’t be fired, nor incentives put in place to reward good ones–even if their current salaries are untouched.
Finally, I think that inheritance taxes should be increased somewhat. I am concerned that an excessive long term concentration of wealth into a family or trust or foundation (I’m talking to you Harvard) leads to concentration of power in the hands of the incompetent. Additionally, it distorts my ideals of capitalism where capital tends to accrue to producers. Of course this is usually a self-correcting problem.

Policies I am in favor of.

This is stuff that seems acheivable and desirable. It is intended to be a general framework, not a complete list and is vague in some places for that reason. I am going to expand on this points in future posts. One every wednesday until done.

1. Class mobility should be increased. I believe the elimination of classes is not possible as a function of public policy. Therefore increased mobility is the best method of preventing destructive class struggles. 2, 3 to support this goal.
2. Rent seeking should be curtailed as much as possible. It redistributes wealth to those who are already well off, and rent seekers protecting their turf often interfere with the adoption of sane public policy.
3. Inherited wealth should be taxed at high enough rate that it dissipates in two or three generations. Both for individuals and foundations.
4. Families should be subsidized and protected.
5. I oppose all forms eugenics, support free birth control, and want to restrict abortion more than it is now.
6. Advocate subsidiaritywhere practical with a larger entity to step in, in case of local failure – for both government and private entities.
7. Markets need to be corrected by government intervention. Some behaviors prohibited and externalities corrected.
8. Against the “This can never be allowed to happen again” mentality as its goal is unrealistic and unduly hampers normal functioning. As an example I oppose Sarbanes-Oxley.
9. Research should be amply funded, through various mechanisms. I have some ideas on how this could be done differently than it is now.
10. Practicality and people should always be above ideology.