Law Professors are Completely in Touch with Reality
From the ABA Journal comes a story of two law professors, from Yale and Berkeley, attempting to tackle what they assume to be a problem of inequality.
Piggybacking on the popularity of the Occupy Wall Street movement within their echo chamber, these useful idiots are proposing a tax on the 1%, which would cap their incomes when the inequality grows “too large.” What is “too large”? Why, it’s 36 times the median household income.
Of course. Because 37 times would just be beyond the pale.
Actually, their justification is probably worse than if they had no justification. As proof that 36 times the median is the right place to cut people off from the rewards of their hard work, they point to a 1916 warning from Justice Louis Brandeis, who claimed in an entirely conclusory way that “too much” inequality will reach a tipping point where democracy is undermined.
Well if Saint Brandeis said it, then color me convinced! No need for anything like, well, real analysis.
Okay, sarcasm over. In all seriousness, there is no reason to believe that something like this would work as planned. The unintended consequences would be enormous, and I am quite certain that, although these professors could figure this out if they wanted to, inconvenient facts are being brushed aside in partisan fervor.
Off the top of my head: High income people would move out of the country. People would stop working as hard. Entrepreneurs would no longer take risks. Growth would stagnate. Progress would grind to a halt.
The immense stupidity of this proposal is almost beyond words.