I don’t think the 100% tax rate argument works, for several reasons:
100% is not the short-run maximum extraction rate (Cf “Laffer Curve,” which is explicitly short-term).
USGOVT is not really an agent here, some extractors taking all they can are subjectvto the top marginal tax rate & reallocating to themselves using subtler mechanisms like monetary policy and financial regulation (and deregulation, cyclically), boondoggles, other regulatory capture...
If you count other extraction points such as credentialism + high college tuition + need-based financial aid (mostly involving loans), hospital bills, lifetime extraction rate may be a lot higher.
Good point, I updated towards the extraction rate being higher than I thought (will edit my comment). Rich people do end up existing but they’re rare and are often under additional constraints.
I don’t think the 100% tax rate argument works, for several reasons:
100% is not the short-run maximum extraction rate (Cf “Laffer Curve,” which is explicitly short-term).
USGOVT is not really an agent here, some extractors taking all they can are subjectvto the top marginal tax rate & reallocating to themselves using subtler mechanisms like monetary policy and financial regulation (and deregulation, cyclically), boondoggles, other regulatory capture...
If you count other extraction points such as credentialism + high college tuition + need-based financial aid (mostly involving loans), hospital bills, lifetime extraction rate may be a lot higher.
Good point, I updated towards the extraction rate being higher than I thought (will edit my comment). Rich people do end up existing but they’re rare and are often under additional constraints.