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Yvain comments on Open Thread February 25 - March 3 - Less Wrong
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Because it signals "I am so wealthy that I can afford to tear up money" and blatantly signaling wealth is crass. And it also signals "I am so callous that I would rather tear up money than give it to the poor", which is also crass. And the argument that a one dollar bill really isn't very much money isn't enough to disrupt the signal.