Thursday, November 10, 2011

[zlipizyz] Never hire anyone poor

Further reflections on Posh jobs of trust.

The straightforward mechanism is to set things up so that if the employee betrays the trust, he or she will lose a lot.  Assuming civil action, the employee must therefore have something to lose.  If an employee has nothing to lose, e.g., they are poor, then he or she cannot be trusted, so will never be hired in jobs requiring trust.

This is another consequence of a wealth inequality, as well as a mechanism of how inequality of opportunity can persist.  However, mere income redistribution may not be enough to solve it.  Wealth acquired by government redistribution (e.g., progressive tax rates) cannot be taken away: the employer threatens, "don't betray my trust or else your tax rate will go up."

Redistribution won't solve opportunity, though it will inequality.

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