A price for a product includes cost plus a reason for production. The price is presented and accepted as fair. Consider during the course of production costs savings occur as a result of efficiency, robots or whatever. Who should benefit? Remember that the initial price was presented as a fair representation of costs and profit. If there are savings it seems ethically they should be passed on to the consumer by adjusting the price. Traditionally any realization of extra profit is a windfall to the producer. But there are circumstances that can expand profits beyond imagination. Consider and IPO or a successful movie or litigation or finances. Enormous windfalls are the dreams and imagination of everybody from 100 hour a week endeavors down to the purchaser of a lottery ticket. The problem is that when huge windfalls remove money from the system then the system suffers. Windfalls could be taxed according to their final disposition. Do something that expands the use of money and don't pay any taxes at all. On the other hand stagnated money could be taxed at a significantly high decreasing rate. Choice between money working or letting the government put it to work.
Recent comments