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Did Trump's top economic advisor endorse a wealth cap? - 3/16/18
Trump has tapped Larry Kudlow to head the National Economic Council, and I can't stop thinking about what Kudlow wrote a while back:
...while the Left has demonized Trump’s cabinet appointees as a terrible group of successful business people, free-market capitalists such as myself regard this group as very good indeed...Why shouldn’t the president surround himself with successful people? Wealthy folks have no need to steal or engage in corruption.
Most pundits responded to this by explaining that the rich are often corrupt thieves, but what strikes me is how Kudlow is actually contradicting a major point of capitalist orthodoxy. In theory, the reason that we let the rich get even richer is that financial incentives motivate peak professional performance from our captains of industry. But here, Kudlow insists that the rich are not motivated by opportunities to make more money. If that's true, why not impose a maximum cap on wealth?

To appreciate just how off-message Kudlow's comment is, just look back to the 2008 financial crisis. As income inequality and executive pay came under more public scrutiny than it had in decades, here's how Ira T. Kay and Steven Van Putten, writing for the Cato Institute, responded:
Corporate boards design executive pay programs to attract, retain, and motivate executive to perform at high levels. Motivation plays an important role in companies' ability to achieve high returns and encourage executives to make decisions that increase shareholder values. Incentive pay programs are particularly effective motivators, especially at the top level of business.
This is all important, of course, because the "executive compensation system...has helped to generate great wealth for shareholders and millions of jobs for American workers." And that's how capitalism justifies itself to society: because income is what motivates our wealthy innovators and job-creators, we need to give them more money.

If pressed on this, Kudlow would undoubtedly revise his position and insist that the rich do need financial incentives - but that just exposes his comment as the empty rationalization of power that it is.