“What is Redistribution of Wealth?”

Thoughts on a Free Market Economy…

“What is Redistribution of Wealth?”

By Phyllis Hunsinger

August 1, 2016

 

            For a number of years the mantra of some has been the need to redistribute wealth in order to create more equality in the United States.

Redistribution of wealth is defined as the transfer of income and wealth, including physical property, from some individuals to others by means of a social mechanism. Individuals contributing to charities constitute voluntary redistribution of wealth. Compulsory wealth redistribution comes as the result of government programs including welfare, progressive taxation, healthcare mandates, public services, land reform, monetary policies, and confiscation.

The proponents of wealth or income redistribution want the most affluent in the country to share their wealth with the less affluent. This mindset seems to assume the amount of wealth in the country is a fixed amount, much like a pie, and the pieces need to be cut in smaller, but more equal portions. The fallacy of such an assumption is that the wealth in a country grows as the economy grows. Only when the economy is stagnant is the size of the wealth closer to a fixed amount.

Government intervention stifles the growth of an economy by limiting competition and consumer choices, by increasing costs and prices, and by creating artificial surpluses and shortages. If growing the economy increases the wealth of a nation, by necessity government intervention must be limited in scope.

Wealth redistribution programs abound and are growing at a rapid rate in the United States. The policies of wealth distribution in Europe have proven to be unsustainable. The citizens of the United States would do well to examine the direction in which the country is headed and support limited government intervention before it is too late.

J.Paul Getty wrote in his autobiography, “…You cannot help the wage earner by pulling down the wage payer. You cannot help the poor by destroying the rich…”

 

https://www.free-dom.co.us, Phyllis Hunsinger © 2013 All Rights Reserved

 

This post was written by

Leave a Reply

Your email address will not be published. Required fields are marked *