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Saturday, December 5, 2009

Wealth and Wealth Redistribution

What is wealth? That's always a tough question, so let me begin by dividing it into two types, tangible and intangible. Tangible being such things as food, clothing and shelter and intangible being money. Government can control the production of the latter, but seldom the first, although at times they attempt to do so. Currently the Obama administration seems to be attempting some form of wealth redistribution, by placing additional tax burdens on the so-called wealthy. This simply moves intangible wealth from one group to another and does NOT increase the about of tangible wealth those things we need in our daily lives (food, clothing and shelter). Additionally the movement of that tangible wealth from one group to another will have the immediate effect of driving up prices on the basic goods we need for everyday life, while not producing an increase in the quantity of such goods. The true reality of this movement of wealth from the rich to the poor will result in less production of vital goods and higher prices.

Many people in our society think that millionaires have too much money and the government has a responsibility to take some and give it to those in the lower economic groups. This is the flawed belief of the socialist. They fail to realize that goods not money determines the wealth of a nation and wealth redistribution only moves money and not real wealth. The value of money is based only on what it can purchase. Just a few thoughts on economics 101 which many seen to have forgotten or never knew.

10 comments:

Snarky Basterd said...

"From each according to his ability, to each according to his need."

Whoever believes those words is a socialist.

I'm reading Atlas Shrugged right now ... and that book is about NOW.

These are sad times.

The Born Again American said...

Sadly we have gone from a production based economy to a consumption based economy... This in its self lends to the problem... No longer do we produce the tangible, but we depend on the intangible to exist... This is precisely why this administration is so hell bent on destroying jobs in the manufacturing section while increasing government jobs which produce nothing... Taking from the haves to give to the have nots is never going to work...

I'm one of those foolish consumers who is now struggling to keep his head above water in this economy... I rhode the tide of prosperity not realizing that eventually you're going to hit the beach... I like this great nation will survive and come through this storm stronger and wiser... We as a nation will persist and the progressives trying to destroy us will be defeated...

TexasFred said...

Possum and Coon, I have some good recipes for that... And soon, they may be a mainstay in the modern American diet...

Ron Russell said...

You're right Fred! I have one of those critters in my backyard I've been eyeing for the dinner table. He's getting nice and fat from the table scraps I toss out each evening.

MK said...

Well said Ron, it's something the socialists and leftists won't learn. Everywhere they've done it, it has not made people richer or well off, all it has done is strip some who worked hard of what they earned and served as a warning to any thinking about working hard, not to bother.

Snarky Basterd said...

Keyrist, Fred. Possom and coon ... and mole ... and squirrel ... back on the menu. That's f'ing progress.

Mr Pink Eyes said...

Good post Ron. This administration is not interested in creating wealth, they are only interested in taking wealth and spreading it around.

Debbie said...

As with everything there are those nasty unintended consequences -- like the 'rich' deciding they won't work as hard if they will not be able to keep what they work for and earn. Then what? What will the government do then? No incentive for people to work hard and achieve.

Debbie
Right Truth
http://www.righttruth.typepad.com

bendprue said...

Lucky to u........................................

Teresa said...

I am an unemployed struggling college student who is barely making it financially. I got sick, so I lost my job. Its no person's fault that that happened. It is not the wealthy person's responsibility to give me money. I would love it if our government would give the wealthy incentives to create new jobs, so I could find a decent job. But, now I am trying to figure out a way to start my own business while finding a decent job.

The government is destroying jobs on purpose in order to keep the most amount of people they possibly can reliant on the government's social programs. And, therefore keeping those people in the Democrats pocket.