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FSN: Economic Fallacies — Income Re-distribution
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
by Monty Pelerin
Monty Pelerin’s World
Income re-distribution is one of the great economic follies engaged in by the political class. Central planners believe they can alter income distribution without affecting income creation. Believing that income creation and income distribution are independent of one another is economic naivety of the worst kind. Statist propaganda proclaims its value in spite of the harm done to an economy.
To understand the fallacy, assume for simplicity that an economy consists of only two working people — Mr. Productive and Mr. Unproductive. Mr. Productive works 70 – 80 hours per week. Mr. Unproductive works 30 hours per week and doesn’t expend much effort in the endeavor. Regardless of how we might feel about either situation, both people are obtaining returns commensurate with their abilities and efforts. Both are, at least in some fashion, satisfied with their situations. Either could increase or decrease his efforts but neither chooses to do so.
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Source: http://silveristhenew.com/2015/01/11/economic-fallacies-income-re-distribution/
