Message Number: |
401 |
From: |
Daniel Reeves <dreeves Æ umich.edu> |
Date: |
Mon, 26 Jun 2006 22:50:14 -0400 (EDT) |
Subject: |
children international and the estate tax and warren buffet and yootles |
I just sponsored a 10-year-old in Ecuador through Children International
(children.org). It seems like a good organization. I recommend
charitynavigator.org for checking out specific charities. I think one of you
told me about that (Mekayla?).
In other news...
I haven't followed it too closely but I gather from factcheck.org that any ads
you may have seen arguing against the death/estate tax are lying through their
teeth. If anyone wants to expound, please do.
Relatedly, Warren Buffet, the world's second richest person (second to Bill
Gates) announced over the weekend he'll donate 85% of his net worth ($30some
billion) to charities with >80% going to the Bill and Melinda Gates Foundation.
I understand this is the single largest monetary donation in history. Buffett
also said he intends to donate the remaining 15% of his wealth before he dies.
He said that "a very rich person should leave their kids enough to do anything
but not enough to do nothing."
On slashdot (the premier nerd community, where Microsoft is widely reviled)
this donation and the Bill and Melinda Gates Foundation in general was widely
lauded.
I liked the following rebuke to someone complaining about the unequal
distribution of wealth:
> this is only possible due to a system in which the vast majority are
> pushed into poverty and a tiny minority accumulate nearly all the
> wealth
You're falling into the classic "the pie is only so big" trap. Do you
really think that if Bill Gates and MS had never happened (likewise
with, say, IBM or Sun or anyone/everyone else) that poor people would
have somehow had a share of his billions in their pockets, instead? They
don't call it "making" money for nothing: you do something people want
and are willing to buy, and that creates demand and sets a price. Those
people do the same with what they do for a living (or don't do it, if
they don't produce anything, of course). The point is that vast
fortunes have been made by lots of people because of MS's economic
activity and innovation (yes, innovation - despite the groupthink, they
do some of that, and their marketing vigor is no small bit all by
itself, and is something that lots of other less-innovative companies
copy, BTW). Some of that income has been earned by people like school
bus drivers with some of their 401k in a mutual fund that has invested
in MS's future.
This notion that the only reason Michael Jordon is rich is because
someone else is now poor... or that Michael Moore's $200M from making
his silly "documentary" is money that those movie-goers would have
otherwise have used to buy applesauce for starving babies... it's
nonsense. No matter how much people resent successful businesses (or
just what their thriftier neighbor is able to buy for not having wasted
so much on stupid crap), it's usually just that: frustration at not
having cowboyed up and done the same sort of work themselves, and
created value where it didn't exist before. The really busy people make
the pie bigger. We can split hairs over whether or not Netscape might
one day have made some piece of that pie bigger than MS made it - but
would you say that Netscape's early pile of cash and investment somehow
made poor people poorer? Or that Red Hat does?
If you're still reading, you might be interested in my new baby at Yahoo:
www.yootles.com . We (Yahoo) are now hiring full-time programmers to work
on it. If you know anyone, please put them in touch with me!
--
http://ai.eecs.umich.edu/people/dreeves - - search://"Daniel Reeves"
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