The Foibles of the Redistribution of Wealth

Now that we understand what Wealth really is (see: https://dannesrepossessions.wordpress.com/2013/05/17/what-wealth-is/ ), we can understand the bad things that will happen when society treats Wealth and Wealth Creation flippantly.

Liberals often talk about the redistribution of wealth and the problems of wealth inequalities.  But since we know that wealth is intangible, we know that it can’t be redistributed.  Nor is there anything that can be done collectively about wealth inequality because some people are smarter than others, or work harder, or choose to work longer.  Some people are better than others.  It is up to the individual who is not as good as others to either accept this, or decide to work their butt off to be better.

Wealth is not riches, but it can be traded for currency or other items of value.  When liberals and tyrants speak of redistributing wealth, they are actually talking about redistributing success.  Like I’ve said before, wealth is the realization of new ideas.  An idea for a new kind of Solar Panel will only ever be an idea until it is realized.  And if it’s a good product people will trade items of value to buy it.  People reward the wealthy, and at the same time enrich their own lives by acquiring innovative products.

But for the successes of wealth to be redistributed, it first must be taken.  It doesn’t matter how sympathetic the people about to be taxed are, it doesn’t hide the fact that all taxes are taken by deadly force.  If a person tells the government to get stuffed, ultimately the government will invade with guns and tanks to get their due.

Taking something from someone when they don’t have a choice in the matter is punitive, no matter how you cut it.  If you punish an action, you are discouraging that action.  If you redistribute riches, you are taking from those that have earned it, and giving it to those that have not.  In addition, those who receive the spoils of wealth they didn’t create have no concept of the trials and tribulations of the work it required to create those spoils.

If someone busts their hump for 40 hours a week for 20 weeks building a business, by the time they reap the rewards they are spectacularly conscious of their personal needs.  They know they’ll need a new roof, or an inspection on their car, or if they’ll need to directly reinvest back into their own business.  Furthermore, they’ll know exactly how much work went into earning each dollar.  However someone sitting on their butt all day soaking up government assistance is only concerned with immediate gratification because they haven’t earned a single cent of what they received.

But the consequence of redistribution of the successes of wealth are far more damaging.  When a business owner is taxed at a 50% rate (like they are in New York or California) and they see others being rewarded with the spoils of the business’s hard work, they lose incentive and drive to own a business, much less create wealth.  It is no coincidence that when businesses are being punished for success with 50%+ tax rates that those same businesses shut down.

Another consequence is if a business punished by ludicrous tax rates decides they don’t want to shut down, they can move to a place that doesn’t have 50%+ effective tax rates.  The business isn’t a magical thing that exists when people believe in it and clap for it.  It is an entity made up of people, machinery, property and assets.  If the business shuts down, all these things disappear from the working economy.  But worse still is if a business leaves for another place.  Not only is the community not benefiting from the creation of wealth, but suddenly some place else is benefiting instead.

The worst consequence of all is not the business shutting down, but all the people who were before creating wealth now resorting to being welfare recipients.  Why should they spend their health and wealth to make the world a better place for themselves and others when the rewards will be taken from them and given to someone who is making no effort at all?  That is not a rhetorical question, by the way.  I’ve posed it to many liberals and have never received even remotely satisfactory or logical answer.

That is what is destructive of the redistribution of wealth and complaining about the inequality of wealth.  The very act of rewarding those that haven’t earned it with the blood, sweat and tears of those that don’t deserve to be punished ultimately lead towards a society of takers, rather than makers.  It has happened in every socialist society so far, without exception.  In the United States it is very close to there being more takers than makers.

 

Hi all!  Sorry this took so long to get out.  I rewrote it 2 times, and may do so again anyway.  Add on top of that a house guest and a weird work situation and I just didn’t have the time to sit down and get it out.

The next essay will be on the Flow of the Successes of Wealth, and why we as a country should do everything in our power to encourage Wealth Creation.

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2 Responses to The Foibles of the Redistribution of Wealth

  1. tiffany267 says:

    Nice post, although it sounds more like Europe to me than the U.S. (Greece is a perfect example!). Most of the welfare state in the U.S. is for the elderly, many of whom can no longer work. As I understand it, our stolen money mainly goes toward killing and spying on innocent people and paying the salaries of the absurdly massive federal bureaucracy (the same folks who are punishing small businesses), which I think is even scarier.

  2. Pingback: The myth of benign government | power of language blog: partnering with reality by JR Fibonacci

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