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7

I can only speculate on what Mill meant, but it seems to me that This is mostly a figure of speech. People sometimes say things like "I have no money, but I am wealthy in other ways", meaning they have something they would not trade for money, i.e. monetary wealth. If there is a distinction, it is in the concept of ownership. Air is not wealth ...


5

tl;dr: In the hypothetical you set in the body of your question redistribution cannot help poor. However, this is not because redistribution could not significantly raise the welfare of the poor but rather because in your question 'the rich' actually dont have any resources to share with the rest. In fact the way how you set up your hypothetical example what ...


4

There could be some complicated models where high inequality could have effect on efficiency - the research is inconclusive (or to be more precise almost non existent) on the matter. However, in Public Economics, depending on the selected welfare function (ralwsian, utilitarian, charitable conservative/libertarian etc.), inequality matters for optimal ...


4

With my very limited knowledge of development economics: $\left(\frac{x_m}{x}\right)^\alpha$ represents the proportion of the population that has an income larger or equal to $x$ where $x\geq x_m>0$ and $x_m$ is the minimum income amount. Example 1: Suppose $\alpha\rightarrow 1$ and the minimum income in the economy is $50,000$. We may ask the ...


3

I think the big unknown here is how much they'll start to dissimulate and/or offshore their (new) wealth. According to one paper: A recent study by Brülhart et al. (2017) gives support to the plausible assumption that the effect of net wealth taxes on reported wealth is the more pronounced the more integrated the regions involved are. According to the ...


2

Per our comments above, I believe the expression you have is incorrect. Your confusion is worsened by some poor terminology use. Gross return can be written as $R = 1 + \frac{a}{w}$ where $w$ is initial wealth (or more accurately, the initial investment) and $a$ is new cash flow generated by the investment. So for example, with $w = 100$ and $a = 5$, the ...


2

There is a lot of research into this area. You might want to look into the papers of Angus Deaton, Thomas Picketty, Gabriel Zucman, Emanuel Saez or Branko Milanovic for starters. Especially, Emanuel Saez directly focuses on optimal taxation under different social preferences - including utilitarianism and ralwsianism where reducing inequality matters. ...


2

As currently written, the question asks whether the value of all assets equals the wealth of individuals. This is trivially not the case, since assets can be liabilities of another entity. As an example, imagine an economy in which one individual owns both an industrial firm and a bank. The bank can make a loan to the firm, and both entities’ balance sheets ...


2

The Federal Reserve has two statistical programs that I believe might address your question. The first is the Survey of Consumer Finances (SCF) and the second is the Flow of Funds (FoF). You should be able to find the data on the Fed's website.


2

EDIT: The research I found looks at income inequality, not wealth as the question asks. Specifically with respect to social welfare spending (not necesserily taxation), the following articles from 2003 seem to suggest the opposite is true. de Mello and Tiongson: The political economy literature suggests that redistributive spending is higher in unequal ...


1

I see two main difficulties with this question. You cannot assess the effects of a policy in the real world without reference to actual data, or at least have a theory can be adapted to different distributions. Pointing to some hypothetical country which has an arbitrary wealth distribution does not offer much insight to an actual policy proposal. There’s ...


1

Here is a graph of labor productivity per hour for the United States since WWII. This is fairly typical of capitalist economies. Even Karl Marx and revolutionary socialists recognize that increasing labor productivity is a general characteristic of capitalism. So yes, the pie keeps getting bigger and bigger as a result of this in combination with population ...


1

Wealthy individuals have invested most of their money. One of the biggest reasons for this is inflation. Most countries, especially those in the West, have a small, positive rate of inflation. Inflation is why a dollar when our grandparents were children was worth much more than a dollar is worth today. If the "rich" simply stored their money in their ...


1

How long can I – coming from country X – live in country Y by spending my last monthly salary converted by nominal exchange rate: 1 as a backpacker or as a convenience tourist? 2 adapting to the other country's standards which may be lower? 3 adapting to higher standards than I am used to? 4 How much does this period deviate from a month? My ...


1

This is tricky to answer precisely because governments vary a lot in the services they extent to visitors. There is also variation in the mix of consumption goods across countries as well as their relative prices. You might respond to local conditions by changing your consumption bundle more or less than the average person and that would change the economics ...


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