Oct 30 2008
Fossil Fuels or Renewable Energy?
People seem to be asking, what is wrong with redistributing wealth, well everything.
Rich people become so, because their money is working for them. This means investments, business and that means jobs, which creates wealth for those that benefit from the employment. This creates a continued stream of wealth creation as the money is being recycled and benefiting people over and over. Even if the rich hoard this money it is still creating more wealth that is being spread out.
If money is taken out of the private sector and put into the government it is a one time hit. As a governing entity, not a business, the government cannot create a stream of cash, so it must leach onto another source. That source is the private sector, which currently creates wealth by building it. As the government takes, it leaves less and less for the private sector to create, meaning that when the host dries up the parasite will either move to another host or terminate.
The only true way to create wealth is to do it via the private sector. It is not redistribution, but creation that is the key.
Look at from a liberal viewpoint. Wealth redistribution is like fossil fuels. When fossil fuels are burnt they are gone. When wealth is taken by the government it ends up being consumed. Keeping it in the private sector would be similar to an engine that runs on the static energy it creates as it moves along.
Although the gap may seem large, the fact is our poor are not poor relative to the world and our classes are fluid allowing for people to move in and out of wealth.
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