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Lucas Vasquez

Home Care Assistance of Minneapolis

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Does anyone think that the economy can be fixed by incentivizing redistribution of wealth?

It seems to me that one of the biggest problems in our economy is the vast income gap, leaving some with all, and most with nothing. In reality, there is enough abundance for everyone, but the wealth stagnates when it it held prisoner by the super rich. These people could never possibly spend all their money, so they keep it in banks/money markets/stocks. Banks loan the money out to entrepreneurs and potential home owners and the like. When the banks do this, they charge interest to the people, becoming self-made middle-men. Removing this step and forcing the wealthy to redistribute their wealth how they see fit is a fair solution to the uneven distribution of resources. Those who control a lot of the money would be encouraged to spend their overabundant liquid capital. If your taxes show you having over "x amount" of "money in the bank" so to speak, you will have a choice between re-investing your money or paying an increased tax rate.They can choose to reduce their liquid assets by:
- investing in new businesses and infrastructure (creating jobs)
- buying cars, ipads, and pontoons (also stimulating the economy)
- purchasing government bonds (helping alleviate some of the more pressing debt issues)
- granting vouchers for charity donations, allowing you to keep a larger percentage of otherwise taxable money

If they refuse to invest or spend enough of their money, they will be charged a tax penalty.

I think it's a good idea, and I would love some feedback from someone who has a really good understanding of economics. If you think it's a good idea, share it! No one else will fix these problems for us!

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  • Jan 30 2012: So in your system having money in the bank would be taxed? Not just the income on it, but the actual deposit? Why on earth would I want to keep my money in a US bank?

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