Here is another reason to read Biblical Economics. Psalms 13:22 says “A good man leaveth an inheritance to his children’s children: and the wealth of the sinner is laid up for the just.” Leaveth means leave for those of you in Rio Linda.
Ivan Werning, a 33 year old tenured whizzkid economics theorist from MIT ran some numbers because that’s what economics theorists do as you know and he came up with this.
His paper shows that the transmission of wealth should be regulated to prevent an accumulation of luck—that children should essentially be insured against the family into which they are born.In a follow-up paper, entitled “Progressive Estate Taxation,” also written with Farhi, Werning discovered that the best approach would be to encourage parents to leave bequests to their children, and that government should, through subsidies, help the poor pass on money to their heirs.
Well read R.C.’s book if you get a chance, because these ideas are just about as bad as it gets. There is a chapter which discusses the difference between “equality” and “equity”. The Bible is usually speaking in terms of equity while the world usually speaks in terms of equality. It is a very important distinction to make when thinking about these issues.