Why income redistribution doesn’t hurt growth

See on Scoop.itIt Comes Undone-Think About It

A new study shows that it actually enhances economic expansion, but the “correct” amount of redistribution is a value judgment

Eli Levine‘s insight:

Exactly.

You need so much money to be able to buy a theoretical maximum amount of usable goods and services.  Once you cross over that maximum (which changes, depending upon the quantity and quality of goods and services that are available) it stands to reason that you don’t need much additional income and that your greed is unjustifiable and non-rational.  As a matter of fact, it’s also self-debilitating, as you’re preventing other people from being able to purchase a wider variety and better quality of goods and services, thus limiting economic growth potential, eliminating competition from the market, and generally rigging the whole thing in favor of companies who produce garbage at higher than what the market price would otherwise be for that garbage.

You have no idea how many times I’ve heard people in the business sector blame greed for the problems of the world.  Yet these folks who are so cavalier about being not greedy in word are the same folks who fight tooth and nail against any attempt to reign in the greed that they exhibit in practice.  Not only is their mental state all messed up, but it’s also hurting themselves and others through denying society the method of overcoming their personal greed without resorting to violence, overthrow, and revolution.

It is society, acting through the government, who is meant to handle those affairs.  It is the society who holds government to account through elections or revolutions.  If the rich fear the government so much, the best thing that they could do is not block voters from having a say in government.  If the rich are so responsible, reasoned, and rational, they also wouldn’t block government from stepping in to do what is needed and reasonable for the economy, in the economy.  A businessperson just knows his/her business, which is only one little piece of the economy.  A government official is meant to know the economy as a whole, including all business, all actors, and the environmental context in which it works in.  That is why we ideally don’t allow business people to operate the mechanisms of government, unless they have some proficiency at knowing how ECONOMIES, ENVIRONMENTS, and SOCIETIES work, and not just a business.

Let people do the jobs that they’re inclined to do.  Don’t interfere with the other’s business.  And, above all, recognize that a government’s business supersedes that of a business, because that is how you produce the economic, ecological, and social environment in which a business can thrive, thus fueling the society and the economy within the limitations of the environment.

We’re run by idiots.

And they’re businesspeople.

Think about it.

See on www.cbsnews.com

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