I'm curious about the notion of becoming wealthy by extracting wealth. Here are four ways to increase one's wealth, which of the four is an extraction:
1. Earning a salary. Generally speaking, the larger the organization and the higher the position the higher the salary.
2. Investing in stock. The more a company grows, the more valuable the stock becomes, the more the investor's stock is worth.
3. Owning a home. The more people there are, and the more desirable a location is, the more valuable the property is, and the more the home is worth.
4. Owning a business. The harder and smarter your work, the more the business is worth. As the owner, that grows your wealth.
How do these methods of increasing wealth make it worse for other people? Or are you referring to another way? For example, a drug pusher who gets people hooked and then sells them drugs is for sure extracting. Or a monopolist who can charge any price he wishes is extracting if he chooses to exploit that position.
However, the majority of wealthy people are not of that type.
If a group gets wealthier while everyone else gets poorer, then the first group has extracted that wealth from the second group.
The thing about taxes is that they act on groups and equalize things. They are what makes (or, should make) this ficticious person of your pay for the construction of a road that he will never step on, or for a school that his children will never use.
The wealthier they are, the more they have extracted. Thus the more they should be taxed. It is really not that difficult.
1. Earning a salary. Generally speaking, the larger the organization and the higher the position the higher the salary.
2. Investing in stock. The more a company grows, the more valuable the stock becomes, the more the investor's stock is worth.
3. Owning a home. The more people there are, and the more desirable a location is, the more valuable the property is, and the more the home is worth.
4. Owning a business. The harder and smarter your work, the more the business is worth. As the owner, that grows your wealth.
How do these methods of increasing wealth make it worse for other people? Or are you referring to another way? For example, a drug pusher who gets people hooked and then sells them drugs is for sure extracting. Or a monopolist who can charge any price he wishes is extracting if he chooses to exploit that position.
However, the majority of wealthy people are not of that type.