Quote Originally Posted by CoccoBill View Post
You said the rich man would have no motivation to work if some of his wealth is spread around. You gave this as if it would be a legit possibility that he stop working, please explain what he would, in your opinion, do after doing that.

The problem is that you're only looking at this through the rich guy's perspective. You picture you're that guy, right?

In a market economy, the larger an investment is, the higher its rate of return. This is due to both economies of scale and the increased range of investment opportunities. In addition to these economic forces, those who control greater amounts of capital within a society are able to participate more directly in shaping government policy, often in ways that further maximize their wealth.

The rich guy's continuing work is getting less and less beneficial for the society, no one has anything he wants and even with slavery, sexual favors etc. only so much of the rich man's wealth ends up generating any common benefits.
After he stops working he starts sitting in his house eating cheese and wine; he no longer creates wealth for society. He no longer invents anything and becomes less valuable to the island.

As investments get bigger they enjoy lower ROI. Ask Buffet or any hedge fund manager. Small funds can easily invest in high ROI investments, but when they become larger it becomes harder and harder to find good returns.

I agree that wealthy people influence government inappropriately. This is why government should not have the power to help one private business over another, it shouldn't be permitted to subsidize corn, bail out banks or auto makers, etc.

Imagine he trades away all his cheese and wine and aspirin for gold coins. He holds those coins in his hut. How did he get those coins? By creating a ton of valuable shit that all the islanders are using and enjoying.