If you ant to destroy prosperity, feed the sin of envy. The rich often get a bum rap. Liberals are incensed when it’s suggested that “the rich” get any type of tax reduction even though the top 50% of wage earners pay 96% of all income taxes. Since they spend more money, the rich also pay a disproportionate amount in sales, property, entertainment, and excise taxes. Without the rich, most people would not have jobs. (Corporate welfarism/crony capitalism is another topic that needs a separate discussion.)
The first computer my company purchased in the mid-1980s cost $7500. It was huge and could only perform a few simple tasks, mostly word processing. The floppy disks were the size of dinner plates and held very little data (360K). Almost overnight, computer prices dropped and performance levels increased dramatically. Cell phones, tablets, smartphones, streaming video, and more are marvels of technology and cheap.
What made these performance gains and price reductions possible? People with lots of money purchased the first high-priced machines. They had the financial ability to lay out “excess” capital for what most people would consider luxury items. These once luxury items — cell phones — are now so cheap that even the homeless have them.
The research and development costs of any new technology are enormous. That’s why the initial entry of new products into the market is expensive. But over time, when costs are recouped and production increases, costs and prices fall.
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