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Incomes and leaders to strengthening of propensity to consumption, can appearRather favorable for capital growth.
Confused submissions in this matter, occurring among general public, It is possible to illustrate very much with a popular belief that the tax on
The inheritance is at the bottom of reduction of riches of the country. If the state
Uses receipts from death duties on cover of the usual Costs, so that taxes to incomes and to consumption accordingly Decrease or are at all cancelled, then it is, of course, true that a policy
Heavy taxes by the inheritance increases propensity of company to consumption,
Strengthens, as a rule (i.e. Except for full employment conditions), As well prompting to investment, traditionally made conclusion as Time to opposite true.
Thus, our analysis leads to a conclusion that in modern conditions Growth of riches not only does not depend on abstention of men of means, as Usually think, but, most likely, restrains it. One of the main things social Justifications of the big inequality in riches distribution, hence,
Disappears. I do not assert that there are no other reasons which are not mentioned by ours
The theory which can to justify the known in certain circumstances Inequality degree. But it eliminates one of the most important reasons, on Which till now we regarded necessary to act from the big Care. It especially concerns our relation to the tax on
The inheritance, as some reasons in favour of an inequality of incomes obviously
Are inapplicable in the same measure to an inequality of inheritances.
As to me I believe that is known social and
Psychological justifications of a significant inequality of incomes and riches,
However not for so big rupture what takes place now. There are such necessary kinds of human activity, for the successful Which realisation are required mercantile interest and the general Private property conditions on the capital. Moreover, the dangerous human Bents can be directed on rather harmless channel there, where There are prospects "to gain money" and to accumulate personal riches. These Bents if they cannot be satisfied by such way, can
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