Good stuff... TFA would make sense if they said concentration of wealth leads to oligopoly, or highly imperfect competition, or rent-seeking. But those are different from central planning. In the 50s, when a vertically integrated GM or Ford controlled 3% of GDP, that was as close to central planning as we got. But back then, interestingly, wealth and incomes were less concentrated than today. The link between concentration of wealth and the form of industrial organization is not very clear.
In the 50's the managers of GM and other successful companies paid over 90% marginal tax on income. I am sure that had an effect on their decision making process; i.e. Should I pay myself a $1000 bonus and be able to spend less than $90 of it? - or should I re-invest that $1000 in the company?
or should I build an empire with lots of perks for me, and just make sure shareholders do well enough that I don't get fired, and who cares if the company goes down the tubes 20 years after I leave.
