Violating the first rule of economics

As everyone should know - but sadly even professors emeritii seem not to - the first rule of economics is that incentives matter. This therefore might not be the way to increase innovation in the British economy:

There are vast numbers of people who can innovate in the UK, but the ones most likely not to do so are the wealthy, because they are always far too frightened of losing their wealth to innovate. The other millions (and I mean that number) of potential innovators in the economy just need access to resources to enable them to innovate, and it would most definitely seem as if it is Dan's intent that they do not get access to them via the only agency that might make them available, which is the government via redistribution of wealth.

If we tax all the money off the people who have innovated and thereby got rich we’ll then increase the amount of innovation in British society. By destroying the incentive to innovate and thereby get rich.

Thank goodness we do have Professor Murphy, eh? We’d never know what not to do if he weren’t available to insist upon it.

Tim Worstall