IP laws puts things into overdrive. It makes it impossible to compete. If you had a normally functioning environment, any time someone tried to capture excessive wealth, someone would just straight up copy them and that would be the end of it.
But since the law prevents copying others, contrary to the idea of capitalism, certain people are able to build moats. That's how you get the Bill Gates and Elon Musk's of the world. There is no way Windows would have made Microsoft any money if 1,000 different organizations all sold their own copies of Windows. But as the law gilded Gates to act exclusively...
Land eventually suffers a similar problem, to be fair. That hasn't been a huge deal historically as there was always more land to conquer, but those days have mostly drawn to a close. But we also tax land to try and find a reasonable balance in light of that — to put pressure on making effective use of it. IP, on the other hand, is generally not taxed at all.
My point is that there is no motivation for balance since you have the people with the wealth and power determining the laws. You allude to a “normal functioning” capitalist environment but as counterintuitive as it might seem, that’s what we have.
> My point is that there is no motivation for balance
There is motivation, though! The wealthy don't want another wealthy guy to have it — they want it for themselves. That's why we have property tax, so that the owner actually has to find a good use for it, else be compelled to give it up to other other wealthy guy who wants it even more.
> since you have the people with the wealth and power determining the laws.
The problem is the opposite, really. The average Joe makes the laws, and Average Joe doesn't want to risk their job that depends on intellectual property. Musk wouldn't bat an eye at squashing Gates like a little bug if he could, but Joe working at Microsoft is deathly afraid of what happens to him if Gates is challenged.
> You allude to a “normal functioning” capitalist environment but as counterintuitive as it might seem, that’s what we have.
You're right that it is basic human nature. But capitalism emerged to try and work around the limitations of human nature. That's its whole purpose. However, it largely predates the concept of intellectual property, so it doesn't really have that idea woven into its fabric. Hence why IP is bolted onto the side, with all kinds of bizarre effects because of it.
The average Joe doesn’t make the laws. The wealthy class do. Consider for a moment whether Elon Musk and his millions financing elections or Rupert Murdoch and his media empire have the same influence over the political process and you or I. The power imbalance seems obvious to me.
You mention that wealthy people support property tax because it harms their competitors even though it harms themselves. I haven’t heard that one before. Why wouldn’t elites just write laws that benefit themselves and hurt others instead? This explanation for property tax seems incomplete to me.
> Consider for a moment whether Elon Musk and his millions financing elections
Yeah, and look where that got him. He got to play pretend politician for a short while, but soon realized that it wasn't going to get him anywhere. Everything he wanted to change — including eliminating IP laws, as it happens — failed and it wasn't long before he ran away crying.
Trump is a stronger example of someone who is successfully, at least to some degree, usurping power from the Average Joe. However, I am not sure you have made a good case for his wealth being behind it. Hitler (Godwin's law, yeah, yeah) seized power away from Average Joe in a similar fashion while he was rather poor.
But Trump is an unusual case anyway. His behaviour is quite unlike what has been seen in the past (in the USA). It is not like being wealthy is a new invention.
> Why wouldn’t elites just write laws that benefit themselves and hurt others instead?
Exactly! If the wealthy had all the power, why wouldn't they just enact laws that say they get everything and everyone else must become their slaves? Why beat around the bush with all kinds of stupid half-measures? The reason is because the silly half-measures come from Average Joes trying to improve things, but to not compromise their personal situation (e.g. harming their job) in the process.
> This explanation for property tax seems incomplete to me.
Sure. I'll let you know when my series of textbooks on the subject is finished. But, there is only so much room in an HN comment.
IP laws puts things into overdrive. It makes it impossible to compete. If you had a normally functioning environment, any time someone tried to capture excessive wealth, someone would just straight up copy them and that would be the end of it.
But since the law prevents copying others, contrary to the idea of capitalism, certain people are able to build moats. That's how you get the Bill Gates and Elon Musk's of the world. There is no way Windows would have made Microsoft any money if 1,000 different organizations all sold their own copies of Windows. But as the law gilded Gates to act exclusively...
Land eventually suffers a similar problem, to be fair. That hasn't been a huge deal historically as there was always more land to conquer, but those days have mostly drawn to a close. But we also tax land to try and find a reasonable balance in light of that — to put pressure on making effective use of it. IP, on the other hand, is generally not taxed at all.