Friday, December 6, 2013

The World With "Income Equality"

President Obama and other progressives talk about "income inequality", and how the world would be a shangri-la if only we had income equality. So, let's take a look at a world with income equality.

Every adult would be assured the same - or nearly the same - income. It would not matter if you flip burgers or work as an astro-physicist. So, that begs an important question - if your incvome is going to be the same as everyone else's, why would you want to waste years and hundreds of thousands of dollars going to college? In fact, what would be your incentive to even finish high school?

And if Steve Jobs knew his income would be the same as everyone else's, do you really think he would have created Apple? More to the point - if his income were the same as yours, how could he possibly afford to create Apple?

It is income inequality that creates a system that works. It is the very basis of competition, and we know it is competition that drives the economy and entrepreneurial pursuits. You want MORE than the average Joe, so you work harder to get it. And you want - and deserve - to be rewarded for your efforts.

In a world of income equality, there is no incentive to get educated, work, or create. So the government must then step in and try to FORCE people to work, get educated and create. And we saw what a failure that was in the Soviet Union. In fact, it has failed in every society that attempted it.

But let's say for the sake of argument that everyone is provided the same amount of money to start with. Just how long do you think it would be before the lazy, uneducated people would lose their share to those who hustled and worked? According to some studies, it would only take less than a year for everything to be back the way it is. The ne'er-do-wells would spend their share on toys, gadgets and crapola, while the smart folks would invest in creating products that would lure the ne'er-do-wells to spend their money.

That is human nature. And try as you might, you are not going to change human nature.

By the way - "income equality" is a tenet of communism.


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