The fact is that the market process is an extremely effective redistributionist force. No matter how big and successful a company becomes, if it makes the wrong investment decisions or it fails to satisfy consumers, it is in danger of going out of business. Each firm, no matter how much market share it has been able to capture, must constantly be on its toes. One big mistake or several small mistakes can cause massive losses. Or just a simple shift of consumer tastes can cause a big company to become a little company in a very short period of time...
Americans have been sold a bill of goods with respect to the income tax and the estate tax. Socialists convinced them that such taxes were necessary to redistribute the wealth from rich to poor. Setting aside the moral implications involved in taking money from one person in order to give it to another person, all that such taxes have accomplished is to centralize power in Washington, D.C., by enabling the political class to put their hands on massive amounts of privately produced wealth to dole out to friends, supporters, and cronies.
Americans don’t need income taxes and estate taxes to redistribute wealth. The market process, which is based on the moral principle of leaving people free to accumulate wealth, redistributes such wealth quite effectively.
The Market Redistributes Wealth
No comments:
Post a Comment