Friday, February 13, 2009

I Have the Solution

Governments do NOT create wealth.
Governments can create conditions which allow individuals and companies to create wealth. For instance, a government can allow an oil company to buy or lease government-controlled land, and then that oil company can explore for, discover, drill for, and produce oil. That "creates" wealth, in the sense that the raw material has value, and can be sold, creating wealth for that oil company and the people who own it. The same scenario can be imagined for a gold mining company, a lumber company, or any other company that produces natural resources from the bounty of the earth. Farmers can create wealth by growing crops. The list goes on and on.
However, taking money from one individual and giving it to another does not in any sense create wealth. No, this activity is simply re-distributing it. Taking from one entity and giving it to another, no matter what the principle or formula or methodology, creates nothing.
Here's the point: Liberals in our country have the strong desire to tax the rich and give to the poor. This strategy doesn't create wealth, it just redistributes it. No wealth is created because nothing exists that didn't exist before.
Someone has the idea that by taxing the rich and redistributing it to the poor(er) folk, the country is better off. I say, no way! Not only was no wealth created in that activity, who's to say that the people who benefit from this redistribution will spend that windfall money in a way that's any better than those from whom it was taken? I would guess that in fact, they will spend it in a worse way. Who buys all the lottery tickets--rich industrialists? Nope. Who buys most of the cigarettes--the highly educated, high income earners? Nooooo. Who capitalizes companies that employ large numbers of others--the poor and uneducated? Generally not. Re-distributionism does not improve our country, it just improves the circumstances of some at the expense of others.
Not only does wealth re-distribution not on the whole make us better off, it upsets a lot of people--all those from whom money is taken. But I have the solution.
Now that liberals rule the country, they clearly outnumber the conservatives. Up till now, liberals have had a great influence in the country, but still have had to compromise, over and over with the conservatives. They never totally got their way. But now they rule. They're in charge. They control the White House, the Congress, and the Judiciary, not to mention the press. No more compromises: they make the rules, and they can enforce them. However, liberals hate to force anything on anyone; they believe in free agency and "if it feels good, do it" morality. So I say, let the government create a voluntary tax collection program. Instead of forcing everyone to contribute, let only those who want to participate in this noble endeavor volunteer their funds. Liberals can contribute to their heart's content. The government can continue to perform its excellent redistribution function, the libs will be happy, and poor will get wealthier and the conservatives and industrialists will be ecstatic.

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