Smarty_Pants

Congress Should Address Capital Gains and Corporate Taxes Differently

"those who are capable of earning money ... are the most competent to decide how much of it and where it should be invested." - moonbat

Competence is not a factor in "good" spending, only in "good" providing.

Even the strongest back/weakest mind supplies labor and provides demand for the necessities of life regardless of competence. These contribute to the aggregate economic signals and play a part in setting prices for things.

If a laborer's wages exceed his necessary purchases, his personal choices on discretionary purchasing will add to the demands of the economy as a whole. The only thing he need be competent at is knowing what things he wants to buy with the extra money he earns. Everyone can do that, pretty much by definition.

Those with great amounts of excess earnings impact the supply and demand situation in larger proportion, but again they need not be competent. They may have inherited their wealth and choose to squander it.

The market will find the overly competent producers (whether by design or by luck) and reward them with larger profits for best meeting the aggregate demands of the spenders. If the competent producer cannot pay for his production out of his own funds, the market will find a way to divert savings to his venture in return for interest or capital participation.