Of course, but there are about 700,000 children in each school year and 7pc get a huge head start in life by an accident of birth. Over decades and generations, that can only increase the inequality in society, which brings all manner of ills along with it.
I’m not sure, to be honest, and I agree it’s not clear-cut or straightforward (I was mainly thinking about the private education question, which I think is clearer, albeit also not a simple policy problem).
However..... I suspect it would be possible to devise a system which works better than the current inheritance tax system.
You ask what I see as “unearned” capital assets - well I can give you my own example - I was lucky enough to buy a 3-bed maisonette in central Brighton in my late 20s in 1984 for £27k. As a result of that luck, I’m now in my 60s sitting on housing equity worth something like 35-40 times that amount. Even if the original £27k plus the mortgage interest I paid can be seen as “earned”, the vast bulk of that capital appreciation is entirely unearned by me (let alone earned by my kids who might inherit it, at least they would if I could be arsed to find ways round the IHT, or decide not to leave the lot to charity) - all I did was sit there watching it grow over time. Even the original house purchase decision can’t be attributed to my ability or knowledge, as there was no way I could have predicted the subsequent ridiculous trajectory of the UK housing market. Other people of the same age and ability as me, who made different housing decisions to me, or happened to live in different places, will be much less well placed to leave huge assets to their kids. So yes, I think that’s a clear example of an unearned asset that a rational government (if they weren’t terrified of the ire of the Daily Mail) would prevent me passing on. Such a change would, incidentally also have a very positive effect on the housing market and economy, helping to move it towards a system in which houses are places to live in rather than financial assets, and helping to direct savings away from housing towards investment in productive assets
- and the wider reduction in passing of privilege down through families (e.g. 100% inheritance tax over £50,000) - WILL be a very good thing when the country comes to its senses at some point.
Wow, that really is the politics of envy.
If the commies get into power, we are in deep doodoos.
I love this suggestion that views have to be motivated by self interest. So revealing about the individual making that accusation.Would not be posting like that if the personal circumstances were different methinks.
I don’t get this accident of birth shit!!!
Two people with money decide to have a child, what’s accidental about that, unless you’re suggesting that in the special stork perch they randomly pick each child to pop out of mummies tummy?
I hope you don't have a private pension that's invested in shares - loads of unearned income there ( assuming it's invested in the right shares ! ).
I love this suggestion that views have to be motivated by self interest. So revealing about the individual making that accusation.
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Moshe, You are 'Away With The Fairies'.
He is right though.
So many arguments I see are made on the basis that everyone else thinks like you (not you specifically BLOCK F, just a general 'you')
The assumption that self interest drives individual decisions is central to so much in our economics and politics and yet it is flawed.
Evidence seems to be that pure self interest is not a 'natural' instinct, but that most of us can be manipulated to act in either in self interest or in ways that put the common interest of society/nature ahead of our own. And we are manipulated far more easily than we ever want to admit (exhibit A being the size of the marketing industry).
If I was driven purely by economic self interest I'd be a Tory.
Would not be posting like that if the personal circumstances were different methinks.
Damn straight. Marx and Engels never would've written the Communist Manifesto if it weren't for the grinding poverty of their childhoods.
Oh.
As always with labour it’s the politics of envy. People want something they can’t afford so let’s just ban it and take it away from everyone.
Some people may call not call it envy, they may call it principles
I understand where you are coming from, Highflyer, but if you read through Moshe's several posts, you will understand the reasoning behind my comment re Fairies.
By the way, your comment re Tories and your own political instincts does suggest that you rather view Tories to be bad, selfish and baby -eaters and the Left to be all sweetness and light and kindness personified. It ain't that simple is it, nor is it a correct assumption.