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one argument is that very high marginal tax rates combined with the continuing existence of firms with market power led to spending of profits that would have been heavily taxed if paid out to shareholders instead on prestige projects instead, like Bell Labs which invents the transistor.

Counter argument is that large organizations grow inefficient, with diffusion of responsibility and risk aversion. E.g., Musk has made risky bets on EV’s, rockets, satellites. But as we see with AI these investments can become too distant from broad demand, serving only oligarch interests