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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: David R who wrote (26925)	5/17/2001 7:37:43 AM
From: Wren	Read Replies (1) \| Respond to of 27012

>>There is extraordinary societal value in small profitable businesses and family farms that can not be found in GM or Archer-Midland (large corporate entities). The bottom line is not always the bottom line.<< David, as you know, most family owned businesses, including farms, are not owned by the same family for more than three generations. There are many reasons for this. Estate tax sometimes is a reason. Competition is sometimes the reason. For example, WalMart opens a store in a rural community and many of the long-time customers of the family businesses on Main Street begin to buy at WalMart a lot what they previously bought from the small Main Street merchants. The decrease in volume causes some of the small merchants to close their doors. But, in my experience, more often it is the large number of heirs that exist by the third generation. A small business can provide employment for only a small number of the family members and practically all the family wealth is tied up in the business. You gave the example of the 50 acre Cherry farm valued at $10 million in the middle of Silicon Valley. The $10 million invested at 6% would earn $600,000 annually. The children can get build careers elsewhere and use their share of the $10 million to supplement their incomes, or start their own businesses, or many other things. I agree that it would be sad to see the pretty little Cherry farm bulldozed to make way for a shopping center. But, I think our capitalist system must be allowed to work with minimum government interference, and I still believe that giving certain business and farm owners estate tax exemptions that are substantially larger than the exemptions given other citizens is fundamentally wrong. You and I just disagree on this. I see your viewpoint and respect it. I have enjoyed this exchange of ideas and viewpoints. Best regards.