Amazon, 1,528248 karma · joined June 28, 2012
Amazon, 1,528in both this article about donut shops and the article about Bay Area motels, the "business visionary" grants personal loans to other immigrants who were already settled in the U.S. to bootstrap their own _separate_ businesses.
> The 70 kilogram remote sensing satellite is to be used for agricultural, climate, mining and environmental observations, allowing the Horn of Africa to collect data and improve its ability to plan for changing weather patterns for example.
The introduction further clarifies the author's definition of the type of innovation that gets disincentivized. "Basic research", i.e. innovations in our understanding of our world, are readily funded by the redistributed tax revenue. "Applied innovation", that which applies the outputs of basic research, includes the creation of Amazon.com or the latest improvements to Google search. This applied innovation is what gets disincentivized.
I personally agree with you that this is a shaky, unsubstantiated foundation for an argument about optimal tax policy.
Consider, just as one example, the paper "Are High-Quality Schools Enough to Increase Achievement Among the Poor? Evidence from the Harlem Children’s Zone" (Dobbie and Fryer 2011) https://scholar.harvard.edu/fryer/publications/are-high-qual...
Here is the abstract:
"Harlem Children’s Zone (HCZ), an ambitious social experiment, combines community programs with charter schools. We provide the first empirical test of the causal impact of HCZ charters on educational outcomes. Both lottery and instrumental variable identification strategies suggest that the effects of attending an HCZ middle school are enough to close the black-white achievement gap in mathematics. The effects in elementary school are large enough to close the racial achievement gap in both mathematics and ELA. We conclude with evidence that suggests high-quality schools are enough to significantly increase academic achievement among the poor. Community programs appear neither necessary nor sufficient."
Another way to think about it is that Google wants SWEs who can also act like researchers (e.g. PhD students).
Good luck!
It's great to see economic cooperation working out so well on so many levels!
(I have no affiliation to Gamalon)
What you are describing is a moral judgement about what people should "value", not how they make choices conditional on what they value. Rationality is not a technically correct term here.