““Rich” ... is the point at which the marginal utility of an additional dollar for personal consumption and investment is effectively zero. I think that this is a good definition for a couple of reasons: One, because people have different preferences, that point comes at very different wealth and income levels for different people, which is why there are so many people of relatively modest means who dedicate some non-trivial portion of their incomes to charity rather than to their own personal desires. Second, it accounts for the fact that while the value of an additional dollar for personal consumption may be zero, the value of deciding for one’s self how any additional dollars are to be disposed of is not zero. That is why there are so many people who work diligently to minimize their tax bills while giving away millions or billions of dollars to charitable ends. The position is not, contra the protestations of our progressive friends, an inconsistent one.””
