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Date: 2011-09-04 20:01 (UTC)From:The large piles are abusively effective for the selfish purposes of a few individuals. Dividing it into piles reduces its effectiveness for those purposes, moving it to others; instead of buying yachts and lobbying for plutocracy, it can buy houses and lobby for public goods, or at least private ones with a broader base.
There might be some loss of wealth creation due to economy of scale loss, but there can also be gains from less distorted politics, less oligopolistic rent-seeking, broader investment in human and public capital, and a healthier and happier population.