Zeev's Turnips Patch-No Politics (ZEEV)

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Newly2b... redistributive taxation

"I fail to see how decreasing the wealth of the creators of wealth and redistributing it to the consumers of wealth is economically beneficial."

Sure, if the "creators" as you call them, are really doing all the creating, rather than just controlling the creation, and if the "consumers", as you call them, are only consuming, and not helping with the creation.

Even if that's really the case, you still need to redistribute wealth to some extent, just to maintain social stability. Also, to keep the discussion relevant to this board, it's important to redistribute wealth "downward" to those who will spend it the fastest (the "velocity" concept). Another economic reason for redistribution is that, when division of wealth gets too extreme, society has to spend too much money on non-productive jobs (police, security guards, etc).


"The communists already tried that -- it didn't work."

Sure, but let's face it, we have tried it too, with fair success. The problem is with the extremes. The Communists went so far that they removed too much of the incentive for the "creators" (I'll use your term) to create. They also went so far in suppressing people's natural intentions that they had to create a totalitarian state, which further exacerbated their economic problems.

The other extreme, though, can be equally destructive. There have been many examples of it throughout history, but one of the most illustrative is that of the late stages of the Roman Empire, when socioeconomic rididity was such that the politico-economic structure collapsed.

I think we need a carefully selected middle path. The philosophy that you stated, if that truly were our guiding principle, would mean NO redistribution of wealth, which would, for one thing, mean horrific public schools for the poor (even worse than they already are).

"Besides, right here at home the consumers have been consuming throughout this downturn and it hasn't prevented our deteriorating fundamentals!"

It has prevented a depression, which is, essentially, a collapse of demand. If the Great American Consumer stops spending, we'll see one in a hurry.

"I don't think creating false wealth for the poorer classes solves anything. "Give a man a fish, you feed him for a day; teach a man to fish, you feed him for a lifetime.""

OK, but how do you teach them? You have to have schools, right? And in order to give the poor something like an equal footing, you have to redistribute wealth, don't you?