Worthwhile Canadian Initiative: Meritocracy, mobility, and optimal taxation

The important distinction between merit and rent extraction skill. Tax and regulate more of the latter.

"Suppose individuals differ both by "merit" and by "rent extraction skill", where "rent extraction skill" means "ability to transfer income from others to themselves". So an individual's income depends on his "total ability", which is the sum of "merit" plus "rent extraction skill"."

Worthwhile Canadian Initiative: Meritocracy, mobility, and optimal taxation