Sunday, February 27, 2005

To the socialist

Companies, the "rich" and profits from sales of natural resources like oil and gas, are the sources of money that should pay for the State and government-programs, according to the Leftist. In exchange, the "poor" should more or less be free from taxes, the Leftist says. The "rich" are especially targeted as those who should pay for the common services. This is always thought to be "fair" by the Leftist, because those who have "enough" money already are morally obligated to contribute more than others, and not just in monetary-value (like they do already) but also proportionally.

This might have worked a few years ago when the world was pretty much fixed - when moving across borders was hard and free flow of money was restricted. However, today, in an every-increasing globalized world, how does the Leftist expect a State to create a system which punishes those who rise in pay above the average, and still finance its programs of welfare-checks and socialized health and education? Isn't it so that what drove the Soviet-union into bankruptcy, and is driving more or less every Western "welfare"-state into ruin, is exactly the fact that richness isn't being created?

Usually we forget that when an economy becomes richer, the poorest in it become richer as well. An economy which earns (in some respect) a value of 10 has poor people 10-times poorer than those in an economy which produces 100. Empirical data shows this again and again. The exceptions are few and usually tied with oil-profits or socialist-governments. Will the Left ever learn or is that just fantasy?

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