Sunday, January 15, 2012

The Land of Envy

GHEI: The class warfare toxin - Washington Times:

Good column on how Obama and the left has already made a lot of progress at moving us from being the land of opportunity to being the land of envy.

One of the huge "successes" of the BO administration has actually been in one of the areas that they constantly talk about "doing in the future" -- a vast reduction in wealth disparity by the destruction of wealth.

That is precisely what "transfer of wealth" accomplishes. If you demand that some of Bill Gates wealth be transferred, the act of the transfer means that the wealth is no longer optimally allocated, so therefore the total wealth of the nation is lowered. For example, the wealth might have been invested in a new project at Microsoft that now has to be cancelled. Rather than potentially providing the next big computing breakthrough, it is transferred to a series of people that buy large screen TVs ... and becomes a depreciating rather than appreciating asset.

The economic pie is NOT fixed -- in the zest of the left to divided it to their political advantage, they completely lose sight of just how easy it is to SHRINK it.


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