Friday, June 19, 2009

Redistribution of Wealth - A New Government Subsidy?

We hear a lot about redistribution of wealth, but what does it really mean? Is it anything more than a new government subsidy? I don't think so. I believe a subsidy is exactly what it is, but for all of the wrong reasons. The government seems to believe that there is a finite amount of money to be made (even though they keep printing more willy nilly) and that if Tom is making tons then Dick and Harry can't make any. They couldn't be more wrong. Big surprise there. There is infinite opportunity for wealth. Even though Tom is making tons of money, Dick and Harry can make even more. Even Jane, Sally and Mary can make money while Tom is.

Wherever we are in life, whether rich, poor or firmly middle class, it is where we have chosen to be. It may not be a conscious choice. We may not have desired that choice. We may not have known we were making that choice, but make it we did. The circumstances we were born into plays a part, but mostly we are where we are because of the decisions we've made. Our choices. Our choices led us to our current situation and, therefore, we've chosen where we are. Some people have made great decisions, others have made bad ones. Some choose to work hard with a goal in mind, some choose to do enough to get by. Some choose to not work at all. Some choose a job they love that doesn't make much money, others choose the money, while some choose Nintendo and a couch. Some choose to save and invest, some choose to live off their credit cards. And some make a combination of all of the above decisions plus more.

So what does the redistribution of wealth really mean? It means that we're subsidizing the bad decisions of some with the proceeds of the good decisions of others. And this is referred to as "fairness". And yet, if people are prone to making bad decisions, if they are given the money earned by another, won't they make the same bad decisions?

I believe that people should have the same opportunities. Education is a big thing for me. I find it appalling that we have to have police officers in our schools, but it's the decisions of the students that lead to that need. Unfortunately, in this situation those decisions impact so many others as well. But if a child chooses to get a good education, even in the worst circumstances, they can. It's a choice they have to make. Having said that, it is what we do with our opportunities that determine where we will go. Shouldn't we be equally distributing opportunity and not the proceeds of opportunities utilized to their best advantage by others?

By redistributing the results of the work of another, where is the encouragement of others to exceed that? Why aren't we telling people, "You don't need HIS money, you can make more on your own." If we really want to "spread the wealth" why aren't we teaching our poor youth how to become entrepreneurs? We seem to be telling them they'll never succeed so they must be supported instead of encouraging them to be the rich of the next generation. We have gone from teaching that with hard work and perseverance anything is possible, to teaching that you'll never make it so there's no point in trying.

The core of the redistribution of wealth is that you can't succeed on your own so the government must subsidize you. How sad is that. This is truly what keeps the poor in poverty. Where is the message of hope. The worst possible thing that we can do to the poor is to tell them they need the government to save them. A crime that the Democrats have been committing on our poor for decades. Instead of being given a handout, they should be encouraged and informed that they can do a far better job of improving their lives than the government could ever do for them. Yet where is this message? Who is saying it? Nobody as far as I can tell. And somebody definitely should. There will always be the rich and the poor because some will still make bad decisions. Some will make horrible mistakes. But why should those decisions and mistakes be subsidized? Oh, I know, the poor are too big to fail.

2 comments:

  1. Excellent blog, Tommi!

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  2. Thank you. We really need to work to encourage and convince our citizens, both young and old, that ANYTHING is possible.

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