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View Diary: Socialism — what it isn’t (117 comments)

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  •  How is this a bad thing? (1+ / 0-)
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    That principle applies even more at lower levels, I think.  Say you have a doctor who works 2000 hours seeing patients, has 2 nurses, and makes $1 million a year.  Say you tell him, everything over $500,000 is taxed at 75%.  That means for the second 1000 hours, he takes home maybe 10% (after state taxes, Medicare taxes, etc.) of what he works for every day. At that point, that additional income is not going to make a difference in his life or in the life of his family.  So, he'd rather work 1000 hours, fire one nurse, make his $500,000, and take the 1000 hours off to spend with his family.
    Presumably there is a demand for someone to do that second 1000 hours of work.  So a second doctor comes along, hires the newly unemployed nurse, does their 1000 hours of work and takes home half a million bucks.  At least one more person is employed and richly rewarded, there is more choice in the market and less concentration of wealth at the top.  Two wealthy families get to spend more time with their talented bread winner.

    It's a win-win!

    -7.38, -5.38 (that's a surprise)

    Why must we struggle to protect the accomplishments of Democrats of the past from Democrats of the present? -- cal2010

    by 84thProblem on Thu Apr 04, 2013 at 09:09:44 PM PDT

    [ Parent ]

    •  In the real world the prices rise (0+ / 0-)

      In the short term if the demand is the same and the supply is reduced the prices rise and that would surely be the case in this example because there are no unemployed physicians who would step in to fill the supply side. Your point could certainly be the case in professions where there is an oversupply, like lawyers.

      "let's talk about that"

      by VClib on Sat Apr 06, 2013 at 06:38:51 AM PDT

      [ Parent ]

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