Paul GrahamVerified account

@timoreilly Maybe you can summarize for us. How do you "correct economic inequality" and still allow billionaires?

@paulg You start by getting rid of lower taxes on capital gains. End the carried interest deduction. Stop tying CEO comp to stock price.

@timoreilly Changing tax rates might make founders 1/3 poorer, but startups make them 100x richer, so that won't fix inequality.

@paulg You're looking at this thru a very narrow filter. Startups aren't the issue. Financialization of the economy http://www.tcf.org/blog/detail/graph-how-the-financial-sector-consumed-americas-economic-growth …

@timoreilly Maybe. But if you ban hedge funds the people who start them will start startups instead and inequality will be just as bad.

@paulg no one proposed banning hedge funds. Just taking away some of the baked in tax advantages that make Financial arbitrage so profitable

@timoreilly I meant ban them making lots of money. If that happens, the people who want to make a lot will find whatever else works.

@paulg No one is even suggesting banning them making lots of money. Red herring after red herring here...