Real Estate, local information: Kerby's Point of View

Very good article that goes hand in hand with the UN agenda and some of what they are meeting about now and their plan to implement new "global tax's". The agenda: finding new and "innovative" ways to create global taxes that would transfer hundreds of billions,and even trillions,of dollars from the rich nations of the world—especially the U.S.—to poorer ones,in line with U.N.-directed economic, social and environmental development.
Please also read my last blog regarding "Freedom of Speech" which goes with this as well at: http://romansviii.posterous.com/freedom-of-speech

October 2, 2012

Redistribution
by Kerby Anderson

Often during a political campaign or congressional debate, there has been talk of redistributing the wealth. Fortunately, economist Thomas Sowell has written an insightful piece on “The Fallacy of Redistribution” that should be required reading.

The problem, he says, is that the people “who talk glibly about redistribution often act as if people are just inert objects that can be placed here and there, like pieces on a chess board, to carry out some grand design.” But people make choices based upon the effect certain government policies will have on them.

When the Soviet Union confiscated the wealth of successful farmers, food became scarce and millions of people died of starvation under Stalin. When farmers realized the government was going to take a big part of their harvest, they slaughtered and ate young farm animals they would normally kept tending and feeding.

The problem for those who want to redistribute wealth is that they can only confiscate the wealth that exists. They cannot confiscate future wealth. And future wealth is less likely to be produced if people know it is going to be confiscated.

Usually the most valuable asset is the skills and knowledge of the people who produce wealth. Economists call this “human capital.” When the productive people leave the country, the government cannot exploit their knowledge or confiscate what they would have produced. Fidel Castro could confiscate the wealth many Cubans left behind, but he could no longer exploit the human capital that fled to Florida.

Thomas Sowell also points out that it is even harder for confiscatory policies to work in a democracy. “A dictatorship can swoop down and grab whatever it wants. But a democracy must first have public discussions and debates.” A productive person or industry can see what might be coming and take appropriate steps.

Redistribution of wealth may sound compassionate. But the evidence of history as well as common sense explains why redistribution doesn’t spread wealth. It spread poverty. I’m Kerby Anderson, and that’s my point of view.

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