Saturday, February 18, 2012
Income Inequality — A Measure of Productivity
It's how it works. If you want to share poverty with everyone, then embrace extreme egalitarianism and you can be poor like everyone else and live in squalor. Individual industry is what drives income. Is there some inequity? Undoubtedly. Can it be corrected by government? Doubtful. When government gets into controls of whatever kind they merely displace the market. They can't replace the market. What they price too low disappears and there are shortages. What they price too high is produced in vast abundance and you have a glut and no one is there to absorb the oversupply. The market works. Free enterprise works. Freedom is the engine of growth and abundance. Government is the engine of control and scarcity. Less government leads to more prosperity. As Ronald Reagan said: "Government is not the solution to our problems, government is the problem."
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