Matt on inequality

Link here

This trend has a variety of underlying causes, some of which are worth changing and others of which (better global communications leading to a bigger superstar effect) are basically good. Be that as it may, using the tax code to take some of this wealth and transform it into more and better public services for the broad mass of people would do a lot of good.


Francois' response: It's a nice sentiment, but again, what do you do in a recession when that revenue you've been relying on from the top .01% drops like a stone?

Again, you can tax them more if you like, but put that money in a rainy day fund. Spending it is folly, because it won't be there when the Dow drops.

When the Dow drops,
Your revenue will fall,
And down will come your services,
Poor folks and all