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Eugine_Nier comments on Political ideas meant to provoke thought - Less Wrong
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Re: Capitalism.
Even if we accept the premise that socialism reduces inequality, your argument boils down to that we should make the poor a little worse of (relative to where they'd be otherwise) in order to make the rich significantly worse of in the name of "fighting inequality".
All other things are not equal, and that can have nett benefits. See The Spirit Level.