In reality, you go to college or university, largely to gain access to an organization in which you can benefit from rents without risk of personal assets. Whereas joining the military you risk the most valuable capital that you have on a daily basis – your life. Even if the work (honestly) is not very hard. Whereas Entrepreneurs risk their capital, and work hardest of all.

Yet we are all taxed at the same rate. Why don’t we tax people by the risk they bear? Because people are rewarded in markets by the risk that they bear.

Who does not bear risk? Those who don’t have skin in the game. In other words, people whose organizations exist outside of a market (The Government), or whose organizations have access to credit that puts them effectively outside the market (large companies). Or people who sell highly valued by warrantied products ( Advertising, Media, and Academy)
Advertisements