NJPSU would benefit from this article, but alas, he is warm and cozy inside his bubble.....
https://www.usnews.com/opinion/arti...-tax-plan-over-income-inequality-is-misplaced
Liberal criticism of the Republican tax plan abounds, but much of it focuses on incomeinequality. Income equality, according to those on the left, is a simple matter of justice, and the Republicans do the country a great disservice by widening the divide between the rich and the poor.
It's a misplaced concern. Rather than worrying about how wealthy the wealthy are, and if they will get a bigger tax break than the middle class, true advocates of justice should focus on how poor the poor are. Ninety years ago the noted Austrian economist Ludwig von Mises demonstrated why market capitalism is the only economic system that can create wealth for the masses in his book "Liberalism in the Classical Tradition."
"The fact that product today is as great as it is, is not a natural or technological phenomenon independent of all social conditions, but entirely the result of our social institutions," he wrote. "Only because inequality of wealth is possible in our social order, only because it stimulates everyone to produce as much as he can and at the lowest cost, does mankind today have at its disposal the total annual wealth now available for consumption. Were this incentive to be destroyed, productivity would be so greatly reduced that the portion that an equal distribution would allot to each individual would be far less than what even the poorest receives today."
Let's think about how one gets rich in a market economy. Since market capitalism is a system of voluntary exchange, the only way to get someone to buy your service or product is to make them better off. If you hire a plumber for $125 to fix your sink, then you must have felt you were better off with a functioning sink than the $125.
Neither individuals nor corporations can force you to buy something. Henry Ford II wanted people to buy a car named after his father, Edsel. People did not want to pay enough to cover the cost of production and so despite Mr. Ford's hopes, the car was an economic failure.
Income inequality is a key to a market system because it is the reward for pleasing others. Those who produce something of great value to others will be rewarded and those that are not capable of producing things of value will have less. This creates an incentive for people to take on the risk of innovation, and it is innovation that creates wealth for all of us.
Worrying about how much wealth the richest one percent have is what Mises called the politics of envy. We should be concerned about how wealthy are the poor, and we know that the poor are wealthiest in a market capitalist system, and that system requires rewarding those who are successful in providing what the rest of us need and desire.
https://www.usnews.com/opinion/arti...-tax-plan-over-income-inequality-is-misplaced
Liberal criticism of the Republican tax plan abounds, but much of it focuses on incomeinequality. Income equality, according to those on the left, is a simple matter of justice, and the Republicans do the country a great disservice by widening the divide between the rich and the poor.
It's a misplaced concern. Rather than worrying about how wealthy the wealthy are, and if they will get a bigger tax break than the middle class, true advocates of justice should focus on how poor the poor are. Ninety years ago the noted Austrian economist Ludwig von Mises demonstrated why market capitalism is the only economic system that can create wealth for the masses in his book "Liberalism in the Classical Tradition."
"The fact that product today is as great as it is, is not a natural or technological phenomenon independent of all social conditions, but entirely the result of our social institutions," he wrote. "Only because inequality of wealth is possible in our social order, only because it stimulates everyone to produce as much as he can and at the lowest cost, does mankind today have at its disposal the total annual wealth now available for consumption. Were this incentive to be destroyed, productivity would be so greatly reduced that the portion that an equal distribution would allot to each individual would be far less than what even the poorest receives today."
Let's think about how one gets rich in a market economy. Since market capitalism is a system of voluntary exchange, the only way to get someone to buy your service or product is to make them better off. If you hire a plumber for $125 to fix your sink, then you must have felt you were better off with a functioning sink than the $125.
Neither individuals nor corporations can force you to buy something. Henry Ford II wanted people to buy a car named after his father, Edsel. People did not want to pay enough to cover the cost of production and so despite Mr. Ford's hopes, the car was an economic failure.
Income inequality is a key to a market system because it is the reward for pleasing others. Those who produce something of great value to others will be rewarded and those that are not capable of producing things of value will have less. This creates an incentive for people to take on the risk of innovation, and it is innovation that creates wealth for all of us.
Worrying about how much wealth the richest one percent have is what Mises called the politics of envy. We should be concerned about how wealthy are the poor, and we know that the poor are wealthiest in a market capitalist system, and that system requires rewarding those who are successful in providing what the rest of us need and desire.
